In the second half of steel constructions

Worries that the iron and steel industry is one of the most recent market capacity problem, see the high crude steel nissan constantly innovation, see there are still a lot of new building blast furnace, worry about a lot of production capacity to weak steel price boom again, on this issue, we had different views with market in the first half of this year the capacity utilization level of basic is over 90%, which indicates that there is no serious overcapacity situation, in the past two years is quite a part of a building under construction in the blast furnace to replace capacity, consider to eliminate backward production capacity, the actual new capacity is not so much, we meet capacity problem now is not the primary industry. The future growth of downstream demand, product structure adjustment, and upgrading of iron and steel enterprise’s merger and integration is our focus on the problem.
Through to the understanding of the capacity utilization and steel inventory data, we believe that the first six months of this year’s steel demand are maintained at a higher level, the second half of the boom of industry is downstream of the determinants of demand. Which we are most bullish on affordable housing or the steel demand growth, we believe that after the housing fund issues are resolved, years must be able to complete the affordable housing program starts.
Housing focus is best served starts building steel, so we in the second half of the most promising steel varieties is building steel.