Increasing China steel product export makes opposition from Europe

“The Financial Times” said China steel export increased a lot, it makes the big opposition from Europe to China steel product, But granted China to export steel products to worldwide, was the agreement from WTO, when 15 years ago China joined it. Since China get this power, it is hard to opposite China from world wide countries.

European Union Commission Chairman Juncker stated, the agreement would allow “verification and monitoring” to China steel products such as steel plates, pipes, profiles from China. This is to confirm whether China has keep promise to cut excess steel capacity.

Connections between the Agreement and Economy Status

“Our Chinese friends and partnerships known, that economy status and this agreement have some kind of relations between each other,” Juncker said. “Although you can take apart each other, but literally European should consider them as one.

A discussion if to support China Economy

Addtionally, the European Commission will discuss whether to give the support to China Economy. “I don’t want to expanse the decision, but it will be an noticeable decision. and there is an apparent connection between the steel market and economy status.

It is said that this is an extempore negotiation for this agreement, among Jucker, Chinese Premier Li Keqiang, and the European Council President Tusk. This negotiation suppose to make a diplomatic victory to Beijing, and good news to China steel product and China steel manufacturers.

WL Ross & Co established by Ross, then purchased by Invesco. They stated that the company will create a joint-investment company to purchase China’s steel assets. Then the company will connect with the China Baowu Iron and steel Group and other companies. They will establish a company called Four-Source investment management company. Its headquarters at Shanghai, and invest 5.8 billion dollars to 11.6 billion dollars to the bad performance of iron and steel assets.

Chinese delegation expressed “Interest in reduce the trade surplus”.

Yesterday, US president Donald-Trump and Chinese President Xi Jinping held a summit meeting. Ross said the two countries made an agreement to have a plan “Hundred Days Plan” which discuss the trading problems finally. He said, the biggest success of the two days conference is that Chinese delegation expressed “interest in reducing the trade surplus”.

Ross served as US Secretary of Commerce for only 40 days. People even didn’t know how much he knew about the four-source investment management company before leaving his company. But Jeaneen Terrio, WL Ross spokeswoman said he has nothing to do with it. Terrio said this deal was sponsored by Stephen Toy. And she said, the time of announcement of the transaction have no purpose to rush together with the Trump’s diplomatic conference.

The investment have no connections with government officials.

“This joint venture have no relationship with meeting of Ross and Chinese government officials，” said James Rockas, the Commerce Department spokesman. About this deal, Ross have nothing news from internal, he added.  He is not the joiner of this joint venture.

China is the stand support in steel manufacturing industries”.

“China obviously is the stand support in steel manufacturing industries”, Toy expressed in a statement. He said the participation of the steel giants Baowu Group will be an advantage.

Steel plate manufacturer reproduction speed up.

According to analyst, the steel plate market demand changes in new order and cost changes in purchase price index get significantly better, such as carbon steel plate. It showed positive factors of steel plate market gathering. The index showed that the reproduction of steel plate manufacture was accelerating. In February, the steel industry production index continuously rose three times to 49.5%, 3.9% higher than last month. The purchasing activities related to production appeared obvious expansion trend. Purchasing volume index increased 5.5% to 50.4% in the month. It returned back to the line more than 50% after 15 months, reached the top point since November 2014. The import index of raw material was 52.6%, up 0.9% from last month. The raw material storage index rose to 51.1%, the highest point since February 2015.

From the actual situation of steel plate production, the loss of steel plate manufacture had been reduced recently, but most of steel plate manufacturer still in loss status. Industry funds remained tight. In addition, the current material market keep strong pattern.

The steel market cost support enhanced.

At present, the cost support of steel plate market clearly enhanced. In February, the steel plate purchase price index continued to rebound, and sharp rose 11.1% to 49.9%, reached the top price since January. Imported ore and steel billet price had strong growth after the Spring Festival , and imported ore price reached $51.2 per ton. It hit a new high of nearly four months on February 20.

The steel products demand will be the key for final trend of steel plate market

According to the related index report, the current steel plate market was under effect of “two low”, the low yield and low storage, and support increased at the policy level, it had formed a strong vibration pattern in short time. For the latter steel plate market, the steel products demand will be the key to determine the final trend of steel market. The market supply pressure was gradually highlighted.