Important
In a conversation between Keyvan Jafari Tehrani and the Vice President of the China Iron and Steel Association (CISA), the following points were raised: China is aiming to reduce steel exports / The new construction standards set by the Beijing government will stabilize prices.
Repost:
In an interview with Keyvan Jafari Tehrani, a senior analyst in international steel and iron ore markets, “Su Chang Yang” stated that the China Pollution Control Institute has announced that so far, Chinese steel producers have taken steps to control pollution for up to 600 million tons of capacity, but the overhead costs are so high that their profits have significantly decreased.
He added that local governments in China may individually support their steel industries, but the Chinese government and the China Iron and Steel Association have not implemented any policies for expanding steel exports to specific countries.
Su Chang Yang continued: “China’s steel exports exceeded 90 million tons last year, but according to the new decisions, we will reduce product exports by the end of the year because we believe increased exports will harm prices. Therefore, we are more focused on boosting domestic consumption.”
He noted that although they did not achieve this goal in the first nine months of the current year, they intend to tighten restrictions in the last three months of 2024 and reduce exports compared to last year, as they believe continuing this trend will cause losses, and countries producing specialty steels will benefit.
The Vice President of the China Iron and Steel Association added: “According to statistics, in July of last year, the entire Chinese steel industry, 90% of which are members of CISA, only made 800 million yuan (equivalent to 110 million dollars) in profits; essentially, they did not profit, and only large companies like Baosteel, which have lower production costs, saw gains.”
Su Chang Yang continued: “In the last two months of last year, Chinese steel factories reduced their production, but this year, the directive was to quickly cut production, which will lead to a reduction in iron ore demand. Therefore, from January 1st of last year, the order was given to reduce production for all steelmakers, but many did not comply. However, according to the new directive issued, they must reduce their production in the final quarter of this year (October, November, and December).”
He believes: “Prices in this sector are linked to U.S. interest rates, and the more the Federal Reserve increases rates, the lower prices will go. This issue is directly influenced by the U.S. elections.”
The Vice President of the China Iron and Steel Association stated: “For the first time in 23 months, the price of iron ore has decreased and has fallen below 90 dollars (specifically, 89 dollars and 95 cents) per ton.”
He also responded to China’s new law, which took effect on September 25th and introduces new construction standards, saying: “After the implementation of this law, prices will become more balanced, and even the price of iron ore will stabilize by the end of September, as we see no reason for it to increase and it might even decrease after the Chinese New Year holidays.”
He believes: “The U.S. presidential election will not affect China, as it makes no difference whether Trump or Ms. Harris is elected; neither will support China.”
یازدهمین کنفرانس سالیانه استیلپرایس با موضوع ” فولاد، صادرات و توسعه پایدار” 24 مهر ماه در تهران
برگزار خواهد شد.The 11th Annual SteelPrice Conference will held on Tuesday, October 15, Tehran
https://steelpriceevents.ir/en/home/