Scale of China's Steel Exports in 2017 is Still Huge
China's large number of export scale steel in 2016, attracted the world's major countries trade siege, employ protectionism in succession. Although year-on-year decline in China's steel exports in November, December, and it also is expected to continue slow down. But Shinestar steel research institute thinks that in 2017 China's steel exports still have large quantity scale, the reasons are the following:
Firstly, the FED raise interest rates again and continue to raise interest rates expected, increasing the depreciation pressure, strengthening China's steel exports competitive advantage. Recently the FED raise interest rates again, and sent the market information increased by frequency. Influenced by its expectations, the dollar index continued ascension, so as to increase the pressure of RMB devaluation. There is still the devaluation space of RMB against the dollar is expected in 2017 . The depreciation of the occurrence and continue to happen, in the case of other conditions unchanged, will strengthening China's steel exports competitive advantage ,can hedge against other countries trade protectionism resistance to a large extent.
Secondly, global economic growth speed increased ,total steel demand of the international market will increase also. After the FED raise interest rates, global extreme monetary easing will come to an end, but this does not affect the global economic recovery. Because the FED raise interest rates is based on the basis of economic growth prospects good. In addition, at the same time of the withdrawal of monetary easing, globally active fiscal policy is expected to pick up sticks to promote economic recovery, as a substitute and buffer to avoid impact of world economic growth. Now widely expected after the new President of the United States came to Trump policy, on a large scale expand tax cuts and government spending, will stimulate the U.S. economy to speed up. Countries around the world in a positive fiscal policy to promote global economic recovery speed, will make the total demand of the international market expansion, produce the greater demand for cost-effective China steel. Shinestar group will continue to produce more and more high quality line pipe, LSAW steel pipe, SSAW steel pipe, stainless steel pipe and other products to meet market demand.
Thirdly, China's steel exports steel prices will also increase the international steel price , add power of China's steel exports. Under the background of United States leading the world economic recovery and global steel demand growth, if Chinese cheap steel exports blocked because of tariffs, will produce two outcomes: one is to reduce resource supply,to tight supply and demand; Secondly, the high cost of resources to fill the gap. Either way as a result, steel prices will cause the international market steel price increase, and is significantly higher. In this two months since the international market price increasing stimulate all the steel enterprises all over the world including U.S. steel mills, improve the ex-factory price of steel, China's steel exports decline and the increase in the price of steel exports, is undoubtedly an important factor.
Shinestar steel institute think international market steel prices will rise further in the future, is bound to increase steel export earnings, the formation of China's steel export momentum. Shinestar group will seize the opportunity to develop itself, to produce more high-quality scaffolding plank,to make Shinestar to be a group with international competitiveness.