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Steel should be how to break through?

For the Chinese steel industry in 2012 is the most difficult one year since the new century. Steel prices fell sharply, night back to "liberation"; Weak demand, consumption increment minimum ten years; Overcapacity intensified, crude steel output hit a record high; Steel trade business credit crisis outbreak, steel mills losses across the industry. 4 trillion feast, iron and steel industry is still in the digestion of excess production capacity and inventory. Combined with 2012 mismatching real estate regulation and control of macroeconomic and without relaxation, the steel industry in deep mire, to survive in the tough. As the background of urbanization, institutions turnround is expected to sing more than industry, in 2013, the China iron and steel industry can be after a storm comes a calm.
No matter from the spot and futures market steel prices, or the a-share index of iron and steel industry trends, the steel industry is not as strong as the PMI index performance. From the steel prices, spot and futures markets are currently out of the dropped a wave of high prices, steel prices before the Spring Festival tepid, but appeared shortly after a wave of rapid rise, but fell back quickly after a week.
And professional personage points out, from February steel price under the condition of lack of actual turnover once appear rapidly rising, the expected improvement and cost drive has played a more decisive role in the present moment. And even if steel prices fell, volume also can appear obvious amplification, this shows that economic improvement in the weak state of equilibrium.
It is important to note that the current high inventory has become a fact that does not dispute. In addition, steel prices rebound short lead to recovery of steel production is still under expansion, China's iron and steel industry according to the latest figures, the latest time focus on the large and medium-sized enterprises crude steel output of 1.719 million tons, ten-day rose 1.01%, the crude steel estimate average daily output of 2.006 million tons, the ten-day rose 0.9%.
Finally, China's real estate regulation policies for steel, the influence of iron ore remains to be seen for a period of time. It is understood that steel used for about 30% of the demand for steel, we should have confidence in these.