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Chinese Dragon Iron

Iron and steel exporters to tighten regulation of the unprecedented cost pressures

"This year from January to February, China's steel exports have declined, exports projected for 2008 will not increase." April 8, CCCMC vice president, said Liu Yi-South.

    A series of regulatory measures have tightened China's steel exports.

    NDRC statistics show that from January to February this year, China exported 7.25 million tons of steel, down 17.2%; import 2.67 million tons, down 0.9%.

    Although China's steel production to keep up momentum, but growth has moderated. January-February, the Chinese crude steel output of 79.45 million tons, up by slow growth rate of 16.7%; steel output of 89.05 million tons, year on year growth slowed to 13.1%.

    In response, Yang Siming, general manager at Nanjing told reporters that "one quarter of the new situation noteworthy that the small mill production growth slowed down, while a large steel to achieve a high-growth. This shows that the small steel plants in the iron ore , coke and other raw material costs sharply on the rise, profit margins have little to reduce the yield. "Yang Siming said," but if the international demand is still increasing, the growth of small steel mills will increase. "

    According to the International Steel Association predicted that global steel consumption in 2008 will continue to grow 6.8%. Liu Yi-South said that the international demand for steel will be a long time.

    Over the past three years, the Wuhan Iron and Steel's annual export volume of 100 million tons in 2008, roughly the case. "Export volume has accounted for 10% of Wuhan Iron and Steel Production -13% can be." Wuhan Iron and Steel Group Corporation Overseas Trade Minister He Kangyong said. He said the amount of future exports of steel prices by "qualification standards for the export business," Law.

    However, the reporter learned that the "export business qualification standards" after six months in the hot, not accompanied by tariff adjustments to be "both." Liu Yi Nam told reporters: "The last determined mainly by the Ministry of Commerce."

    He Kangyong told reporters that most enterprises that export not more than 10% of the total production control policy is reasonable.

    He said the company handling the relationship between domestic demand and exports not so difficult, "According to our disposal of Shuju that there would be 200 million Chinese Ren Jinruchengzhen, Wu Lun construction of rural areas or urban process, Du Rang market, we have enough pairs of domestic Gang Tie of confidence. "

    The most immediate concern to steel prices, high costs may be unprecedented. Other hand in Australia iron ore negotiations are still deadlocked, the final acceptance of high-rise seems inevitable, on the one hand POSCO has accepted the Australian coal suppliers in the contract price rise 205% -210% of the new Japanese railways and BHP Billiton on the price of 300 dollars per ton of coal reached a consensus.

    According to Yang Siming said: "Dragons estimates that this year due to upstream raw material costs, the Group will increase the purchase cost 7.2 billion yuan, an average increase in steel costs 125 yuan per ton. It is a fair number of us, there are still 100 of the floating space, I think that will continue to rise up. because no way to retreat back up. "
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