The Important Feature of Iron and Steel Industry this year is the long oversupply and the intermittent reduction of production

China's steel industry faces overproduction and the global economic crisis of the two extrusion, a few days ago, part of the iron and steel industry experts have pointed out that, despite the market's second quarter of this year's rebound in steel prices have very high expectations, but the whole industry, a long period of oversupply and intermittent production this year will be an important feature of the steel industry.
　　According to "Securities Times" on 14th reported that industry in the expert synthesizes each kind of economic data to believe that the steel products recession in demand tendency is tightening, ring than the rapid improvement, in 2008 in the fourth quarter and the first quarter of this year is possibly this crown time gradual base, if the economic data improves rapidly compared to the same period, in the second quarter will enter the demand to restore the stage, the steel products market possibly starts in the end of the second quarter to bounce.
　　Nevertheless, the experts also emphasized: "This year, in China's steel market, the main contradiction is the supply in excess of demand." He told reporters the data listed in the following: the first quarter crude steel production of 500 million tons a considerable level throughout the year; exports dropped, 1 ~ February exports 3.44 million tons, equivalent to the annual export 21.3 million tons of steel last year, 5918 million tons, down 64%, "social stock of steel increased sharply, on the domestic market under great pressure is being digested, the signs of an increase in steel stocks."
　　"China has a huge support of the policy of expanding domestic demand, there will be a rebound. " Another analyst pointed out that the background of the global economic recession, the world steel production will decline; Decline as a result of the impact of Chinese exports, the situation is not optimistic. The country promotes the steel and iron promotion plan, the emphasis is in the total quantity control. Therefore, the 660 million domestic steel production capacity to face serious overcapacity . In steel business not too possible to restrict production unified or in the underproduction situation, a long period of oversupply and intermittent forced to cut production in 2009 could become a major iron and steel industry characteristics.
　　For the reasons above the situation, the experts believe that, first of all, the international financial crisis is still spreading and deepening ,the international financial markets still in turmoil, to launch the country's economy into recession, the global demand for steel will be substantially reduced last year; Secondly, by the impact of international environment, China's economic performance this year, a marked increase in difficulty, the imports and exports significantly lower than last year; Slowdown in industrial production, domestic market demand for steel last year, dropping sharply; Third, China's steel production capacity greater than demand in the domestic shrinking foreign demand, the reduction of production, adjusting the structure as a basic balance between supply and demand, the key to the prevention of market ups and downs; Finally, the iron and steel enterprises are facing resistance reduction. Enterprises should be given to stopping the production of a comprehensive production and duplication of losses, weighing the pros and cons; enterprises have been reluctant to throw away the market share; the local government does not want companies to stop production.