Two of China's steel prices fall back to 10 years ago ChengGangTie capacity or out

China steel industry association, vice President of Wang Xiaoji 29, said the first four months of this year the steel industry profits of 1. 3 billion yuan, 1 billion yuan, 2 respectively. 1 and 600 million yuan. 500 million yuan, falling in a straight line. Excess capacity is the steel industry was the main cause of that the future through the measures of improving the environmental barriers to entry, strive to incorporate the production capacity of around 80% to standardize management. Wang Xiaoji derivatives markets is the 10th Shanghai of the above stated on the BBS. He pointed out that the current steel composite price index produced by cisa, at about 103 in 1994, the launch of 100 points. During the same period of non-ferrous metal prices index expanded several times, and the steel price is almost the same. Steel prices low, which leads to the steel industry from fourth quarter 2011, six straight quarterly loss, the most serious 3 quarter reached 16. 5 billion yuan last year. Now have small profit, mainly depend on investment in mines and the upstream steel industry, but at the end of the main reverse apparently is not reasonable. Wang Xiaoji analysis, significant overcapacity is steel industry losses. In April this year before China's crude steel output reached 2. 5. 8 billion tons, year-on-year growth of 8. 4%. Production of 20 million tons, 10 million tons of directly into the warehouse. “ It should be said that this year's steel demand can also, but were eaten by the rapid release of production capacity. ” In solving the excess capacity, and improve the environmental protection standard is one of the most important way. For those environmental substandard steel mills, the future will use different measures such as electricity, squeeze the living space. According to the Ministry of Industry and Information Technology, the steel industry standard conditions & other; Five-year & throughout; Strive for to include 80% of capacity in at the end of the normative management. And standard in the future is likely to increase, on the basis of has been 80% through the check by about 80%, gradually dissolve excess capacity.