China's steel market in 2016

The first half of this year, China's steel market was heating up. Mainly for the rise in steel prices, steel production increased steadily, steel exports exceeded expectations, iron and steel enterprises achieve high profit. This is very different from the previous forecast of mainstream display 2016, Chinese steel market is not in deep "winter." Chinese steel market heats up significantly in the first half, which has a clear logic:

The first is the steady growth of economic decision-making force measures, particularly efforts to increase investment in infrastructure effective, increasing the demand for steel.

Second is to increase the demand by improving the relationship between supply and demand, pushing steel prices up. At the same time, some of the steel companies were forced to reduce production because the price fell below the median cost, with heavy losses.

Finally, Steel prices have made the steel production profitable again, which stimulate steel companies increase production again. China steel prices rose sharply, completely reversing the sharp decline in the efficiency of China's steel industry situation, to its strong growth. According to statistics, in 1-7, 2016, the national steel output was 657.05 million tons, an increase of 1.9%. The steel production increased 2.1% in May, increased 3.2% in June, and increased 4.9% in July, its output growed accompanied by price increases, profits increased.