Welcome to the Evergrowing Resources Co., Limited website!
Service hotline: 0086-13951964778

Many favorable signals in the macro economy. The prospects for the steel market are promising.

Date: 2019-03-11
Views: 13

Article source: China Steel Price Network


Recently, for the steel market, the release of good news is increasing, with two key points.


One is tax cuts. The current 16% tax rate for industries such as manufacturing is reduced to 13%. From the perspective of production links, the reduction of tax rates will help reduce the cost and burden of steel producers, thereby reducing and improving the asset-liability ratio of industrial enterprises. From the point of view of the circulation link, the reduction of the tax rate has reduced the cost of all links in the steel industry chain.


According to estimates, the cost of this round of tax reduction on coal, coke, ore and other raw materials is about tens of yuan, and the cost of billet and rebar is about 100 yuan. In terms of transportation, the value-added tax of the transportation industry has dropped from 11% to 9% this year, which is conducive to reducing the logistics cost of steel transportation. In addition, the tax rate reduction will increase the competitive advantage of domestic steel exports, which is conducive to exports.


The other is new urbanization and shantytown renovation. As one of the main measures to stabilize investment, this year's infrastructure supplements will be significantly increased. However, due to local debt problems, its growth rate cannot be too high. It is expected that the investment growth rate will be around 10%, which will moderately drive steel. Demand is expected to drive steel demand between 1% and 2%.


On the whole, it is good for the steel market in the near future. It is worth looking forward to in terms of capital, tax rate and downstream demand. Although there will be a cycle of implementation, there is no doubt that the fundamentals of the steel market will improve.

 

Related Suggestion / Hot News
2019 - 03 - 23
点击次数: 9
Evergrowing Resources Co., Limited was built by the founder of Mr. Ge in HK, 2016. He worked on steel industry for more than 15years till now. He and his team have exported more than 200,000mt differe...
2019 - 03 - 11
点击次数: 18
Article source: China Steel Price Network As the weather gradually improved, the steel market “Golden Three Silver Four” gradually approached. After the cold winter of some downstream industries ...
2019 - 03 - 11
点击次数: 13
Article source: China Steel Price NetworkRecently, for the steel market, the release of good news is increasing, with two key points.One is tax cuts. The current 16% tax rate for industries such as ma...
FOLLOW US
Copyright ©2019 - 2022 evergrowing resource co.,ltd 
Xiniuyun provides enterprise cloud services