Steel firms face tough prospects in 2010
By Pan Xiaoyi |
March 16, 2010, Tuesday
|
Print Edition
Print Edition
CHINA'S steel industry faces risks from a change in the interest rate and the government's other measures to tighten the country's monetary policy this year, UBS Securities said yesterday.
A rise in the interest rate may largely depress demand for steel while tighter policies could lead to a downward spiral in price, Tang Xiaobo from UBS Securities wrote.
Overall, China's demand for steel this year will be back to normal after the country exits from its stimulus package, Tang said.
Most of the demand is likely to come from the manufacturing industry in 2010 due to the pickup in industrial activities, compared with robust demand for long steel products heavily geared toward infrastructure construction in 2009.
"This will benefit major steel mills which mainly produce steel plates used for manufacturing," Tang said. "And the growth in demand for steel plates will be stronger and sustainable."
Large steel producers could also be helped by the possible rise of the yuan as they buy iron ore from overseas on contract basis, Tang added.
Media reports said Australian and Brazilian iron ore giants were asking for a price rise of as much as 50 percent while China expects a 20 to 30 percent rise.
A rise in the interest rate may largely depress demand for steel while tighter policies could lead to a downward spiral in price, Tang Xiaobo from UBS Securities wrote.
Overall, China's demand for steel this year will be back to normal after the country exits from its stimulus package, Tang said.
Most of the demand is likely to come from the manufacturing industry in 2010 due to the pickup in industrial activities, compared with robust demand for long steel products heavily geared toward infrastructure construction in 2009.
"This will benefit major steel mills which mainly produce steel plates used for manufacturing," Tang said. "And the growth in demand for steel plates will be stronger and sustainable."
Large steel producers could also be helped by the possible rise of the yuan as they buy iron ore from overseas on contract basis, Tang added.
Media reports said Australian and Brazilian iron ore giants were asking for a price rise of as much as 50 percent while China expects a 20 to 30 percent rise.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
