IF analysis of the electric industry - Mr.Chen

I peer friends, all new and existing customers, here today to tell you my analysis of the intermediate frequency electric furnace industry in the eyes of the current situation and development.

         U.S. financial crisis sweeping the globe, has seriously affected the real economy around the world, China also can not be an exception. Then we should look at how we are engaged in the industry for decades, its development and what it is closely related to.

        As we all know, the basic intermediate frequency electric furnace are used for metal smelting, and other related industries, our customers have been clear, that is, iron and steel industry enterprises. Only the steel industry flourished, intermediate frequency electric furnace in our industry in order to prosperity. Iron and steel industry's prosperity is mainly on the economy as a whole, the study shows that 42% of the steel industry needs from the real estate industry, 41% of the demand from the automotive industry, which increases demand for iron and steel accounted for all of 83%. Well, that is to say, only the real estate industry and the prosperity of the automotive industry, iron and steel industry in order to revive again. Looking further real estate industry, since the national macro-control, housing prices began to fall stability, the immediate relaxation of national policy, coupled with the arrival of the cycle of interest rate cuts, but due to the increase over previous years, prices still too high, so The real estate industry needs time to recover. This is from 4 trillion to stimulate domestic demand, but the lack of direct real estate industry will be able to see that the central government still feel that domestic prices have not dropped in place. Come take a look at the automotive industry, 4,000,000,000,000 yuan stimulating domestic demand, large-scale, information on the preparation of this winter's auto market, China is a big positive. But the financial crisis, is the decline in auto exports more domestic demand than the same period of last year, this year sales growth of 8%, the lowest since the entry into the WTO is a one-year, next year's automobile market is still not Good.

         Another show that China's steel exports accounted for 10% of the total output of iron and steel, with the financial crisis of the increase, this figure will be reduced. Well, that is to say, the country has just introduced the export tax rebate policy is only a temporary solution. To put it simply, to the export tax rebate, you first have to be able to export about it and not foreigners to buy, they can not let you export, Jiubeng to a tax refund. This should be, this policy really is to stimulate the steel industry, said that really bad.

          Although I mentioned above 2:00, is not optimistic about the steel industry, which is on behalf of the intermediate frequency electric furnace business, we should do this to be finished. Otherwise, I am still very optimistic, not the saying goes, money is not the industry, not only of the business to make money. As long as we are of intermediate frequency electric furnace manufacturers how to save themselves, and how reasonable the use of sales networks, Come winter, and spring it is not far from it.