Ministry of Land and Resources plans to launch new round of iron ore exploration
Thursday, June 19, 2008 in Industry News
In recent years, a new round of the world economy has experienced rapid development of global steel demand led to an annual rate of more than 5% growth, the international market of iron ore and steel prices also continued to surge. Despite the current world economic growth facing more uncertainty, but the steel industry in the next period of time is expected to continue to maintain strong growth.
Strong demand in the market price continues to rise
From 2004 to 2006, the world economy has made since the 1960s has been the most robust growth, with an average annual growth rate of 5 percent for steel demand provided strong support.
Stimulating growth in demand in the international market of rising steel prices. According to WSD statistics, the beginning of 2002, the international market price of hot-rolled sheet for the offshore about 260 U.S. dollars per ton, while in August 2007 has risen to 580 U.S. dollars per ton, up more than doubled.
Steel prices rose sharply driven corporate profit growth, the average profit metric tons has more than 100 U.S. dollars, a recognized high-profit industries. The original "iron refuse Unit" on the stock market became "the most potential for growth" stock.
Rapid investment growth continued to expand production capacity
As the iron and steel enterprises continuously raise the level of profitability, the financial investment in the steel industry greatly increase the attractiveness. In addition, cash flow also improved further in the steel industry continue to grow.
From 2004, North America, Europe and the CIS before the major steel producing countries are increasing investment in the steel industry and to modernize existing capacity for transformation, in particular Russia and Ukraine, through the transformation of its technical equipment has been Has been greatly improved.
2006 to 2013, global steel production through the new program and the transformation of the existing steel plant to make global Channengzengjia in more than 600 million tons.
Concentration of business scale of increase
In recent years, the global iron and steel enterprises in the acquisition intensified. First, through the merger of Mittal Eastern Europe and North America, iron and steel enterprises in production on more than themusic, after the completion of the merger of two giants, so that the industry has been lingering for years to further enhance concentration. Onmusic - Mittal Group's global iron and steel enterprises to set up almost overnight to feel the pressure of the merger. Since then, the restructuring through mergers and strategic alliances, and other means of expanding production capacity and strength of enterprises has become a modern iron and steel business management pursue the goal.
In order to prevent the merger, many steel enterprises, in particular Japan and South Korea's iron and steel enterprises have adopted the cross-shareholding among enterprises, and other strategies. In addition, the Japanese steel enterprises are still areas of professional products increased cooperation, such as Nippon Steel, JFE four major iron and steel enterprises, such as joint investment and use of technology in the world's major advantages for the establishment of high-grade cold-rolled steel plate plant, and other motor vehicles.
To the good international environment for steel consumption optimistic about the prospects
Despite the current world economy there are some risks, especially the U.S. economic slowdown will have a negative impact on the world economy, it is expected that the world economy will continue to grow at relatively high. Therefore, the demand for steel products will have considerable room for growth.
International Iron and Steel Association announced the 2008 demand forecast shows that in 2007 global consumption of steel about 1.1976 billion tons, an increase of 6.8% in 2008 to reach 1.2786 billion tons, an increase of 6.8 percent the same.
Experts predict that the strong demand and increasing costs of support, the international steel market prices will still remain high, and the fluctuations of the will gradually narrowed.
Strong demand in the market price continues to rise
From 2004 to 2006, the world economy has made since the 1960s has been the most robust growth, with an average annual growth rate of 5 percent for steel demand provided strong support.
Stimulating growth in demand in the international market of rising steel prices. According to WSD statistics, the beginning of 2002, the international market price of hot-rolled sheet for the offshore about 260 U.S. dollars per ton, while in August 2007 has risen to 580 U.S. dollars per ton, up more than doubled.
Steel prices rose sharply driven corporate profit growth, the average profit metric tons has more than 100 U.S. dollars, a recognized high-profit industries. The original "iron refuse Unit" on the stock market became "the most potential for growth" stock.
Rapid investment growth continued to expand production capacity
As the iron and steel enterprises continuously raise the level of profitability, the financial investment in the steel industry greatly increase the attractiveness. In addition, cash flow also improved further in the steel industry continue to grow.
From 2004, North America, Europe and the CIS before the major steel producing countries are increasing investment in the steel industry and to modernize existing capacity for transformation, in particular Russia and Ukraine, through the transformation of its technical equipment has been Has been greatly improved.
2006 to 2013, global steel production through the new program and the transformation of the existing steel plant to make global Channengzengjia in more than 600 million tons.
Concentration of business scale of increase
In recent years, the global iron and steel enterprises in the acquisition intensified. First, through the merger of Mittal Eastern Europe and North America, iron and steel enterprises in production on more than themusic, after the completion of the merger of two giants, so that the industry has been lingering for years to further enhance concentration. Onmusic - Mittal Group's global iron and steel enterprises to set up almost overnight to feel the pressure of the merger. Since then, the restructuring through mergers and strategic alliances, and other means of expanding production capacity and strength of enterprises has become a modern iron and steel business management pursue the goal.
In order to prevent the merger, many steel enterprises, in particular Japan and South Korea's iron and steel enterprises have adopted the cross-shareholding among enterprises, and other strategies. In addition, the Japanese steel enterprises are still areas of professional products increased cooperation, such as Nippon Steel, JFE four major iron and steel enterprises, such as joint investment and use of technology in the world's major advantages for the establishment of high-grade cold-rolled steel plate plant, and other motor vehicles.
To the good international environment for steel consumption optimistic about the prospects
Despite the current world economy there are some risks, especially the U.S. economic slowdown will have a negative impact on the world economy, it is expected that the world economy will continue to grow at relatively high. Therefore, the demand for steel products will have considerable room for growth.
International Iron and Steel Association announced the 2008 demand forecast shows that in 2007 global consumption of steel about 1.1976 billion tons, an increase of 6.8% in 2008 to reach 1.2786 billion tons, an increase of 6.8 percent the same.
Experts predict that the strong demand and increasing costs of support, the international steel market prices will still remain high, and the fluctuations of the will gradually narrowed.
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