Steel market experience like a roller coaster in the first half of 2016,, prices exploded after the Spring Festival, continue to rise for two months, then appear cliffs down, to go back to previous lows. And in the second half of the year, steel market steady growth. Widespread concern in the market now, what will happen to the steel market supply and demand in 2017?Whether Steel prices will continue to rise? The hot market if continued, whether will bring the resurgence of backward production capacity?
Shinestar steel research institute said the 2017 steel market will implement the basic balance between supply and demand, the cost of steel will rise, the steel price and absolute value will be higher than 2016. Supply side reforms will promote the iron and steel prices continue to rise, steel demand in 2017 is expected to decline, short-term supply side reform continue to promote the iron and steel rose, elimination capacity and the demand for the race. The downstream industry will affect the steel industry demand. Real estate investment could fall, because the impact on the steel should be obvious. And improve the strength level of construction, to speed up the construction of urban underground pipe network, will be expanding steel industry demand. As a SSAW steel pipe, 3 PE anticorrosive spiral pipe, large diameter spiral pipe, DSAW steel pipe and other products manufacturers, Shinestar will with more high-quality products to meet customer demand, supply service to the customers.
On September 3, 2016,President Xi Jinping and U.S. President Obama communicated at the G20 summit meeting in Hangzhou. In the list of China achievements of China and the United States, the Chinese commitment include: China attaches great importance to the use of merger and reorganization and bankruptcy reorganization, bankruptcy reconciliation, bankruptcy and liquidation system and mechanism to solve the problem of excess production capacity in accordance with the law. In 2017, with the deepening of the work dissolve excess capacity, China's steel industry merger and reorganization, will speed up the pace of structural adjustment. Relatively, bankruptcy channel can open more affect the iron and steel industry in 2017 dissolve the effect of excess capacity. Shinestar steel research institute believes that the steel industry in production and not bankruptcy, bankruptcy without annealing cycle of production, mainly because the steel mills of the laid-off workers re-employment, asset loss cause of bank bad debts, etc. Therefore, the steel industry exist the situation of a good enterprise live is bad, bad enterprise powerless to blame.
In the condition of steel prices is still strong ,the discontinued - reproduction
in 2017 is still likely to exist. Only in accordance with the law, will meet the requirements for the bankruptcy of enterprises into bankruptcy procedures, can effectively avoid the already insolvent enterprises "last crazy".This will let the industry is in the situation of continuing excess. For Shinestar group, we will actively respond to national policy, efforts to develop ourselves, to produce more high-quality steel pipe, to create the most competitive steel enterprise.