Steel structure to be modified

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Steel structure to be modified

Baosteel Group Chairman Xu Lejiang in the Boao Forum for Asia, said that since the financial crisis, China's steel industry makes the structural contradictions have been fully reflected, it is now China's steel industry structure adjustment. He bluntly, there are a lot of the lower reaches of China's enterprises the situation of excess production capacity, but also a lot of backward production capacity of pollution, if not eliminated, the entire industry would not have good development, and on the upper reaches of the enterprise is a mistake misleading signals.

Xu Le Jiang pointed out that the Chinese iron industry's wide production capacity, but the export-oriented is 57 million tons, 15 million tons of imports, automobiles, home electric appliances, shipbuilding and indirect exports 40 million tons; from the show situation, the international financial crisis towards the China Iron and Steel Industry structural adjustment period, the healthy industry of the industry depends onto whether the restructuring towards finalise its task.

He urged that through the financial crisis, commodity prices should reflect the scarcity of supply and demand relationship between upstream and downstream manufacturers should also establish a healthy and sustainable development.

The iron ore pricing mechanism, he pointed out that China's iron ore has been rising for five consecutive years close to 500%, because a large quantity of iron ore per year worldwide close to 800 million tons of iron ore trade. With the iron ore from the southern hemisphere, the Western Hemisphere to the Northern Hemisphere, after all, must have transportation, there is the transport of the financial operation of the market. He called the prices of primary products should be returned to the true nature of the goods, reflecting the scarcity, reflecting the relationship between supply and demand, of sustainable development, and hoped that this year's iron ore price negotiations should be based on this principle.

He also refers towards the financial markets has ruled towards speculative price bubble within commodities, future commodity prices replace towards a clearer need. In his look, as a outcome of people's greed, the market economy could possess solved a lot of bad things, this is not resolved. Metal futures could possess located the law of importance, towards advocate civilians towards discover novel resources and novel and innovative, but speculation within financial markets undermined the market order.

In his outlook, the economic urgent position injure the genuine finances has not yet completed, and now after the come back to reasonable, the most hurt is the user. As for the latest launch of China's iron alloy futures, in his outlook, the metal and iron alloy goods futures to a new means, if a need of supervision and the development of their flexibility, they will proceed astray.