The global economic pattern changed anew in 2013. The developed economies like Europe, U.S. and Japan showed an obvious sign of recovering, while the emerging economies saw growth slowdown on lack of sustainable development supports. China’s economy entered into a stabilizing stage after ten years’ rapid growth, under lofty local government debts, increasing systemic risks, deteriorating environment, faltering structure adjustment and rising labor costs.
The steel sector, in particular, was exposed to various difficulties like overcapacity, tight liquidity and environmental protection. The steel market extended bearishness, with steel average prices dropping continuously, against a backdrop that policies and demand failed short of expectations but supply maintained high growth. It was constantly echoed that the steel industry needs to be rescued. However, like a Chinese saying goes that “as heaven maintains vigor through movements, a gentle man should constantly strive for self-perfection”, participants in the steel industry themselves shoulder a historical mission of transformation and updating ahead of puzzles in structural adjustment, challenges in development and wisdom in updating. Therefore, it becomes an inevitable choice for them to reshape the steel sector, optimize the value chain, forge a new industrial state and build China into a steel-making giant in the world on the back of innovation, big data and mobile internet.
Global iron ore mining giants will begin a peak season of capacity expansion in 2014 and the turning point of supply-demand may appear as expected in 2014. Low-priced iron ore will favor steel companies, but meantime low-cost resources from oversea miners will also heavily hit the domestic ore market. China iron ore companies have built a “Great Wall” for 30 year to protect the domestic market and thus market participants should pay close attention to the influence of low-cost oversea resources on “Great Wall”. If domestic ore loses the competitive power, will the imported ore control the market completely by the monopolistic position? This is a worrisome topic for all market players. There is an old saying in China “poverty demands change, change carries development and permanence follows development”. How China domestic ore market to get off the hook and create a bright future? All market insiders should give a response.
Currently, rebar, coke, iron ore and coking coal futures have been listed successively. HR coil & plate, ferroalloy and other product futures will also go public soon. Steel industry has stepped up the development of complete financialization. Against such a backdrop, fictitious steelmakers emerge as the times require and have become a major force in steel industry. How to accomplish the revival of real economy by using the virtual methods? The conference will invite financial professionals to present their views.
In the context of economic cycle, has the bulk commodity already entered the downward trend? On the premise of overall upside momentum of global economic, can China get rid of the trap of middle income? Will the land policy and high housing price continue restraining China’s economy and hinder the economic structural adjustment? Will the haze become the last straw that crashes some steel enterprises? Where will the iron ore price get its support in 2014? Where will the steel enterprises that lack normalization heading? Under the theme of “Examine the situation & Win the future”, all the doubts will be answered on the site by the heads of the national departments, industry leaders, independent scholars, steel industry insiders, financial experts and etc.
Under the combined supervision of China Iron & Steel Association (CISA), Umetal is going to hold the "Int’l Steel & Minerals Conference 2014" in Taiyuan, Shanxi Province on Mar 19-Mar 21, 2014. The expected attendance is about 800. Umetal is looking forward to your presence.