High-end projects focused on

Steel mills are aimed at high-end products, the reality of the economic downturn and the high-end product demand is not prosperous, eventually high-end steel can only sell a low price.In recent years, the steel industry high capacity in explosive growth. According to introducing,A106b steel tube large diameter ERW steel pipe before the implementation of "the iron and steel industry development policy" in 2004, the national board only 19 sets of mill, 2012 up to 86 sets, capacity utilization rate fell to 59% from 80%, the supply and demand relationship.

According to analysis, in order to "aristocratic" in the steel plate, for example, large steel enterprise flourished in recent years a large number of production capacity,SCH80 ERW Steel Pipe because the product specificity is stronger, the market demand is limited, cause serious excess capacity.At the same time, having been in short supply and high added value of hot rolled plate volume, as the change of supply and demand, is now retired.

Hebei a large iron and steel enterprises, officials say, a few years ago by the transformation and upgrading of climate impact, some steel mills produce high value-added products, only above grade wood, but in the high-end product demand is limited, can not achieve economies of scale. Under the prospect of the overall market demand is weak,schedule 40 galvanized steel pipe have to low noble head, and small and medium-sized steel mills take grade wood job, leading to serious homogeneity competition. Downstream users saw the situation is, with a tender and the price drop down again.

After the transformation and upgrading of industry have not been able to get rid of excess capacity, still on the verge of loss. According to the China iron and steel association, according to data from this year, iron and steel industry as a whole difficult operation. From January to July, the country's crude steel production growth of 7.1% year on year,Carbon Steel butt-welding equal tee compared with only 2.1% increase over the same period of last year, the industry average profit rate is only 0.23%.

Some large state-owned iron and steel enterprises in the economic information daily, reporter interview, mainly due to the excess steel production capacity of private steel enterprises production capacity greatly increased. They point out that private accounts for only 7.7% of the national steel production in 2000, after 10 years of development, up to 48.4% in 2012, private steel capacity increment accounted for the major share of the existing steel overcapacity, the entire steel industry concentration rise but not fall.
The above situation does exist. A weekly meeting for staff drum strength son a private steel mills in hebei boss said, the last August, steel mills lost $1, but considering the stability, he won't be cut sharply.