This year is undoubtedly a happy year to the iron and steel enterprises. Last week, in 2017 (14th) China Iron and Steel Industry Development Summit Forum and the annual meeting of the China Steel Association, China Iron and Steel Industry Association, Deputy Secretary-General Douwei Wei said that in from January to October in 2016, large and medium steel enterprises achieved profits of 28.7 billion yuan. In 2015, iron and steel enterprises, the members of China Steel Association had total profits of 64.534 billion yuan, and that of 2014 was 22.589 billion yuan.
National Federation of Industry and Commerce Chamber of Commerce, the former honorary chairman of the metallurgical steel enterprises in the estimated profit this year, Zhao Xizi said that by the end of the national state-owned and private iron and steel enterprises, the total profit will be more than 400 billion yuan. "The steel industry will not return to the level of 2015 by 2017, but it will be the level of 2016." he said.
The steel industry is running into the peak.
In the keynote speech entitled "Operation and Future Development of China's Iron and Steel Industry" by Dou Liwei, China's iron and steel industry has already bid farewell to the highest stage of consumption of steel in the development of the national economy and has entered a peak area characterized by high operation, development, moderate shock. China Steel will remain high during the peak period of operation, but the overall reduction is developing. Compared with developed countries, China's basic domestic demand and total steel fell modestly.
The Influence of Steel Industry on Downstream Industry
Steel market this year has outstanding performance. Then next year, what is the market performance of the downstream industry in turn?
Secretary-General of China Automotive Industry Association, Shi Jianhua last year introduced the vehicle purchase tax by half of the preferential policies, the implementation of the stage has been caused by overdraft demand next year. If the follow-up policy can not continue, next year's car production growth will be 2%; if the policy continues, next year it can maintain a 7% growth rate. Even if the abolition of preferential policies next year, the current 27 million car ownership scale has been great, with the normal replacement is still a certain increment. From the long-term development point of view, China's per capita car ownership is lower than the developed countries, there is still much room for growth.
If steel prices continue to rise next year, then will the price be successfully passed on to the downstream industry?
In this regard, Vice President of China Metallurgical Construction Association of Architectural Steel Branch, Hu Yuke, believed that the current rise in steel and investment-led domestic demand is related to the project more, materials, demand, prices can rise. In terms of steel industry, no matter how high the price will be, naturally there will be down conduction, provided that the market can accept the price.