Welcome to our website!         [  Login    |    Register  ]
Search Price Index:
Global News
2019-4-19

April 19 (LTIT) –The World Steel Association expects global steel demand growth to stabilize over the long-term at a compound annual growth rate of around 1%, now that Chinese steel demand has peaked, worldsteel Director General Edwin Basson said Thursday. "Overall we see positive growth, shifting more to developing nations," Basson told reporters in London. "Structurally steel is a very robust market ... we don't see much to shift it from [current demand levels of] 1.7 billion mt/year," he said. Slow and steady growth will bring overall steel usage levels up to around 2 billion mt by 2040, Basson predicted. Earlier in the week, worldsteel's short-range outlook forecast steel demand growth of 1.3% this year to 1.735 billion mt of finished steel, a markedly slower pace than last year's 2.1% growth in real terms, led by China. The Brussels-based association forecasts global steel demand growth slowing further to 1% in 2020, when a 1% decline is foreseen in Chinese demand. "Steel demand in China has peaked ... [this means] no more rapid growth but sideways," Basson said. However, production of steel in China is still growing: its crude steel output in March reached 80.33 million mt, up 10.0% on year, the country's National Bureau of Statistics reported Wednesday, and is expected to rise further in April, partly due to the end of winter output cuts and improved end-user demand. But government stimulus levels that may be heightened this year are expected to dissipate next. "We will see a long flat peak in China," Basson said. Recent production growth may lift China's crude steel output for this year to around 949 million mt, from 929 million mt in 2018, according to Basson, remembering that some 60 million mt of Chinese capacity has recently been included in official figures, coming "from the dark into the light" with enhanced regulation of the country's steel sector, involving displacement of unregulated induction furnace capacity. Chinese finished products demand is seen at a peak of 860 million mt, Basson said. The gap between production and demand levels means that China will remain an exporter, but with relatively more stability than in the past, selling some 60 million mt to 80 million mt of steel products abroad this year, he said. While "very fast" growth in steel demand is seen in India -- more than 7% in both 2019 and 2020 according to worldsteel's forecast -- "India is not strong enough to lift the markets," Basson said. "The difference will come when Africa enters the debate, but this won't be for the next few years," he said. Rising protectionism in the steel industry globally is likely to lead to greater regionalization in steel trade and usage, Basson said. The problem of steel sector overcapacity is being tackled by efforts including by the G20 Global Forum on Excess Capacity and by Chinese cuts programs and restructuring, Basson said. Over the past three years overcapacity has fallen from around 760 million mt to recent estimates of 540 million mt, he said.

Market Futures Prices & Performances
2019-3-28

Mar 28 (LTIT) -The most traded zinc contract on the Shanghai Futures Exchange overnight climbed to a new high of this year, in anticipation of a consumption surge in April and with limited inflows of imported materials. SMM historical data showed that domestic social inventories destockde significantly in April. In the week ended March 22, social inventories of refined zinc across Shanghai, Guangdong and Tianjin declined 10,100 mt to stand at 220,300 mt. While April’s demand might have been somewhat depleted as buyers stepped up procurement in advance of lower value-added taxes, the anticipated consumption improvement still fuelled confidence among investors. With limited inflows of imports, stocks of refined zinc in Shanghai-bonded areas stayed below 100,000 mt as of March 22, a relatively low level, SMM data showed. Customs data showed that imports of refined zinc in February tumbled 70.59% month on month and 46.04% year on year. Zinc stocks across LME-approved warehouses extended declines towards lows since 2000. This prompted LME zinc to outperform its SHFE counterpart and lowered the SHFE/LME price ratio, which currently stands near record lows. Such arbitrage opportunities triggered some buying in Shanghai and bolstered prices. Domestic supply constraints also cemented expectations across investors, of lower inventories. Lower profits drove Chinese smelters to cut capacity for maintenance since the first half of 2018. This lowered domestic output. While greater concentrate supplies overseas buoyed treatment changes and recovered profits that smelters could see in the second half of last year, domestic production failed to substantially rebound as two large smelters suffered production disruption. The two smelters have yet to recover to full capacity as of late March. Output of refined zinc in China in the first quarter of 2019 is likely to stand lower than a year earlier even as a medium-sized smelter in Hunan that closed for more than a year, returns online. Some smelters will undertake routine maintenance in April, which will impact production by over 10,000 mt. This further drove investors to add their bullish bets on SHFE zinc. The government’s infrastructure push that started from late 2018 is likely to support zinc consumption. Consumption recovery and limited imports are expected to reduce social inventories of refined zinc across Shanghai, Guangdong and Tianjin, to the 100,000 mt level. The SHFE June contract, however, saw its short positions gain over 10,000 lots during daytime trading hours on Wednesday, on market expectation that the two large smelters will achieve full capacity in June. SHFE zinc is expected to trade rangebound to await the pickup in consumption.

Premier provider of non-ferrous scrap metals information in China market. We quote for more than 200 varieties of scraps including copper, aluminum, zinc, nickel, tin, lead, stainless steel and other non-ferrous scrap metals in Nanhai, Qingyuan, Shanghai, Tianjin, Taizhou, Baoding and etc. Since established in 1995, we had built up our brands with plenty of loyal customers at home and abroad.

Enterprise Ddvantage
Big Data
Massive Customer Base
Market News
Intelligent Trading Platform
Comprehensive Services of Price, News and Trading
Professional Market Analysts and Consultancy Service