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Chinese Steel Weekly-20150817


Development Goals of the Steel Industry in the 13th Five-year Period Fixed

The Fifth Plenary Session of the Eighteenth Central Committee of the CPC, which will be held in October, is going to launch a discussion on proposal of the 13th Five-year Development Plan. Both transformation of conventional industries and development of emerging industries certainly will be described as main content in the Plan. So it is inevitable for the steel industry, the representative of conventional industries to experience transformation.

MPI’s comments: As a typical representative of conventional industries, transformation and upgrading of the steel industry are always highlighted among other industries. Complying with development goals of the steel industry in the 13th Five-year Period, key issues includes overcapacity elimination, environmental friendly development, restriction of disordered competition, merging and restructuring, going abroad as well as transformation of state owned companies. And both transformation and reform will be deemed as main concerns of the steel industry in the coming years.




Daily Crude Steel Output of Key Enterprises Goes Up

According to statistics released by China Iron and Steel Association (CISA), daily crude steel output of CISA members in the first ten-days of August 2015 was 1.6905 million tons increased by 87, 400 tons with 5.45% growth based on the output in the last ten-days of July, while daily pig iron output of CISA members in the first ten-days of August 2015 was 1.6671 million tons increased by 62, 800 tons with 3.91% growth. In the first ten-days of August 2015, steel inventories of key enterprises amounted to 15.5094 million tons increased by 390,700 tons with 2.58% growth based on the output in the last ten-days of July.

MPI’s comments: The most direct and effective way for steel companies to overcome the existing difficult times is to control output in order to achieve cost-effective production. At present, crude steel output in China has entered peak round. According to general rule of change of crude steel output in developed countries, it is predicted that Chinese crude steel output will show a downturn after fluctuation around peak value.
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