The modern iron industry deteriorate within both output and exports

By Zou cheaponsale

China Steel Industry Association display that output in the first half of the report, in early March 2009 every day mean crude iron alloy output decline 130,000 tons. In early March this year, the nationwide every day mean crude iron alloy output approximates for 1.378 million tons, in late February than 1.51 million tons every day yield dropped by 132,000 tons. This is the year of crude iron alloy by-year assessment of mean every day output of the first down turn in iron alloy charges is the outcome of re-production. In 2008 as a outcome of output, as well as the high groundwork in the identical time span is anticipated in March 2009 year-on-year development rate of crude iron alloy output by 1,2 months of contradictory development to affirmative growth.

By the deteriorate within the exchange rate as well as the impact of foreign require for domestic iron exports decline. February iron exports 1.56 million tons, down 50% year-on-year, 18 percent lower than Central. February domestic crude iron (steel billets) Net export alone approximately 200,000 tons. Export situation is grim.

According to the newest Customs statistics, China's trade items in March of iron alloy 1,670,000 tons, an boost in February than 120,000 tons, while 59.76 per hundred year-on-year down turn, but increased 7 per hundred more than Central. March iron alloy 400,000 tons of snare trade items, better than market expectations. Although the latest European Union and the United States likes to household iron alloy goods to certain anti-dumping enquiry, but the trade items to the United States and the European Union are very couple of iron alloy (total 10-20 million tons / month), anti-dumping will not origin farther worsening in exports.

The second half of 2008, in addition to Japan, the major steel exporting countries currencies against the U.S. dollar exchange rate are different degrees of devaluation of the RMB exchange rate maintained a relatively stable and the U.S. dollar, resulting in China's steel products in foreign markets, a significant cost advantage decline. As a core competitive advantage of the loss of low-cost, is the latest of the main reasons for the significant downturn in exports.

Low prices, high cost of steel is the core competitiveness of exports, but due to exchange rate fluctuations and the cost of scrap steel dropped significantly in 2008 for foreign products is no longer a significant price difference, making the domestic iron and steel enterprises have lost business exports the competitiveness of the economy of steel which is the main reason for the significant downturn in exports. - 21396

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