China Iron and Steel Association part of the long products business forum to reach a consensus -

Maintain the stability of the market Steel prices in a reasonable range

"We must recognize the long material market this year, different from the previous situation, the industry work together to strengthen self-discipline of the industry to jointly maintain the smooth operation of the steel market." February 20, at some long material production and management forum, China Iron and Steel Industry Liu Zhenjiang, party secretary and secretary general of the Association, made a speech "clearly understanding the situation and jointly maintaining the smooth operation of the steel market." He pointed out that in this year's production and management, the long-material enterprises should rationally arrange production, adjust the production pace and control inventory rationally. They should pay attention to the price Trend, to protect the price in a reasonable range.

In 2016, the total profit of the steel industry for the whole year exceeded 30 billion yuan, an increase of 110 billion yuan from the loss of nearly 80 billion yuan in 2015. The main factor is the reasonable return of steel prices. At the same time, resolving excess capacity has brought great benefits to the structural structural adjustment of the industry. What is directly benefited from this is the longs manufacturing enterprises.

In accordance with the requirements of June 30, 2017, all of our country will be cleared of "ground steel." Will the long products market appear in short supply? Will there be sharp fluctuations in the price of long products? In response, Gu Jianguo, executive vice president of China Iron and Steel Association pointed out that the production capacity of long products is still oversupply. Generally speaking, the long products market will not be unbalanced in supply and demand due to the crackdown on "ground steel".

Through in-depth discussion and analysis, participating enterprise representatives also think that overall, the current fundamentals are still oversupply. However, with the remarkable enhancement of self-regulation capability of all enterprises and the conscientiousness and awareness of keeping the bottom line in accordance with the contract, all enterprises will enhance their ability to optimize and adjust their structure around the actual situation of the enterprises and give full play to the regional linkage according to the constantly changing market Advantages, good supply and demand balance, to maintain a stable market order.

The participating enterprise representatives welcomed the meeting in a timely and early manner, highly recognized the structural reforms in the iron and steel industry, enthusiastically discussed the issues raised by the conference, put forward many practical suggestions and unanimously expressed their firm support for the thorough removal of " At the same time, give full play to the dominant role of dominant enterprises and take the initiative to fill the vacant market space for eliminating backward production capacity to meet the market demand, stabilize price expectations and improve the quality of products in the steel industry. In particular, Marketing model, to go to work to promote the smooth production, especially for the removal of "ground steel" to contribute.

"In order to be able to go to the production capacity and remove the" strip of steel, "the smooth operation of the need for business, regional and industry self-regulation, through joint efforts of everyone to jointly safeguard the stable operation of the market, do not cause unnecessary soaring plunge, steel prices should be maintained In a reasonable interval, the ups and downs are not good for steelmakers. "At the same time, Gu Jianguo stressed: To prevent individual agencies from attempting to borrow arbitrage through market speculation to make some institutions profit, steel companies finally got nothing.

Participating business representatives also believe that the soaring steel prices will also affect the "strip steel" removal, or even resurgence, and "the smooth operation of the long material market is the best support for the removal of the strip steel."

Representatives of the participating enterprises said that they should take the prompt measures to safeguard the smooth operation of the market. Hope to refine and strictly regulate futures management, so that futures better return to its price discovery function. To prevent the stir fry futures, drive the spot market changes. Hope to strictly regulate the network information management, is strictly prohibited speculation and improper trading behavior.

According to the representatives of the enterprises, scrap steel inevitably enters the eyes of the steel enterprises as the "strip steel" is cleared away. The increased use of scrap steel means a drop in the use of iron ore and a consequent drop in iron ore prices. At the same time, the current stock of ports is very large and has approached 130 million tons. It should enter the price reduction channel but rise rapidly. This should be the reason for the speculation and needs to be watched.

The delegates said that they should maintain their power, stabilize the market, maintain market fairness and play a key role in the market. To play a good steel and the role of enterprises, strengthen docking and exchange, in the regional communication and coordination actively cooperate to implement the work of the industry, work together and actively take the initiative to safeguard the good order of the steel market and achieve the smooth operation of the market.