2017 will be a promising year for China’s steel, mainly at:
First of all, supply and demand will keep in balance in the next year, but the species differentiation, exports declined. In fact, cold, hot plate growth rate of more than 5%, but building materials, seamless tube have negative growth, the differentiation of the species has been very clear. Currently steel springboard, decoiled steel sheet, hot-rolled plate and other product prices raise steadily.
Secondly, the cost will rise next year, mine and coke will greatly enhance, the same to steel, and will keep raise.
The third is a qualitative changed at management model, companies began to find a new profit model. This year appearances a new phenomenon that many steel mills began to do their own second-party electricity providers, which is different to the original third-party e-commerce platform. It changed steel industry a lot.
The fourth is about collected purchase and direct sales. Central enterprises have stringent requirement for centralized procurement and purchase platform for electronic business. and will become more and more strict, it has become the benchmark for the assessment.The re-purchase of bulk materials, tender, collected purchase will become the main mode in the future. Many steel suppliers will do direct sales in the future, it has a very far-reaching impact on trades. Therefore, relying on simple and extensive trading and production style to achieve the goal of win, will be more and more difficult, business model change will makes business success.
Hebei Abter Steel Research Institute said that China’s economic stability, the state supply side of the reform, including the current stable state of the world, China’s steel industry should actively adjust the state, take the chance to do adjustment at business model and technical aspects in the next year. Some experts describe our industry in 2015 is stampede, why is called stampede, because the industry, the steel factory can not produce useful steel product to make money. So we have to reshape the entire business model, the establishment new order of the entire industry in the next two years, including the small regional market, a small variety of new order, but also to find a new business model to profitability.
As a large-scale steel production enterprise, we based in China serving the world, Abter Steel Group has achieved good results in 2016. In 2017, we will continue to carry on to produce more high-quality steel springboard, hot-rolled plate and other products, to reach on a new level.