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Metal industry

Nov 20, 2015

Situation: the slow recovery of the global economy, commodity prices remain weak in the short term.

The International Monetary Fund forecasts global economic growth this year of 3.7%, United States 2.5%, generally slow to pick up, but to fully estimate the depth and breadth of post-crisis adjustment. 2014, the leading international investment banks and national authorities generally agreed that the 2014 copper and aluminium prices will fall, zinc and Tin prices supported at the bottom has been formed, but soaring momentum remains inadequate. Meanwhile, the international economy on China's drive to reduce, from 2011, China's trade as a percentage of global trade starts less than GDP as a percentage of global, traditional labour and resource-intensive products on the international market share in 2011 and 2012, continued to fall. [2]

Situation two: deepening the reform will bring long-term dividends, but the short-term appears inevitable pain.

State Council Development Research Center survey of more than 3,500 companies, continued industry-wide overcapacity, excess absolute high degree of 2013 enterprise equipment utilization rate is only 72%, 68% of enterprises believe that excess capacity will take at least 3 years. Meanwhile, current electrolytic aluminum direct-purchasing continues to face difficulties, aluminum vehicle support policy has not yet been introduced, serious upside down aluminum prices and production costs, in particular a number of high-cost electrolytic aluminium enterprise personnel problems, debts, land, equipment, resolve excess capacity task increasingly difficult.