Chinese steel market shrink down into the huge potential range of - steel, steel, steel - iron and s

China Federation of Logistics and Purchasing
relevant person in charge 3 in Shanghai, said China's steel market has come down into the range of contraction, reflecting changes in demand for iron and steel industry, new orders and export orders index fell to its lowest value since 2005. But the Chinese steel market has great potential for long-term development, national stability and economic range of the effects of policy on the steel market in the second quarter of this year until after the show.

In 3 at the second China Steel Logistics Cooperation Forum, China Federation of Logistics and Purchasing, executive vice president Li-Ming He said the Chinese steel market has entered a contract, down range. Follow-up demand from the manufacturing sector reflect the purchasing managers index (PMI) point of view, the steel industry showed rapid decline trend. The index increased more than 50% said 50% or less indicates a contraction. April 2008 the index has reached the maximum 59.9% in October fell to 30.6% in just 6 months time, down by 29.3 percentage points. Reflect changes in demand for iron and steel industry, new orders and export orders index, is down to China in 2005 to establish the lowest since the PMI index.

With the sharp drop in demand, steel prices have plummeted. 6,7 months in 2008 Chinese steel market prices have reached record levels in August began to decline, to November fell to May 2006 levels. Is expected to rebound in the short term weakness, "We'd rather difficult to get more serious."

Li-Ming He said that although the present down trend, but the long-term development of China's steel market has great potential. China steel production and marketing power, but also iron and steel logistics power. 2007, domestic steel production reached 560 million tons, accumulated 11 months of 2008 reached 531 million tons. This implied the market equivalent of which is to more than 800 million tons of Iron ore , More than 300 million tons of coke transported from the origin to the manufacturer, and then again nearly 600 million tons Steel products From the production line distribution to the steel industry or circulation consumer market. The logistics, capital flow and information flow size, are very large. Steel market in a long time, still maintain a moderate growth, which should be a comprehensive view, an accurate grasp of confidence.

Li-Ming He believes that a series of national stability, economic policy, will certainly have a major role in boosting the steel market. Countries have decided to invest 4 trillion yuan by the end of 2010, which will have 2 more than 1 trillion yuan for infrastructure construction, initial calculations, can be directly driven about 100 million tons of steel demand. In addition, the increase of the key projects, technological innovation, mergers and acquisitions side of the credit support, to adjust export tariff policies, all brought good news on the steel market. Expected effects of these policies after the second quarter of this year, will gradually become apparent.

about author:
The e-commerce company in China offers quality products such as China Micro Gear Motor , Micro DC Motor Manufacturer, and more. For more , please visit Micro Electric Motors today!