The profit of Asia Stelevarov can remain at a historically low level next year - Moody

Moody 'S Investors Service said that the profit of Asian manufacturers of steel will remain at historically low level, amid growing performance and slowing down demand. In addition, the prospects for the Asian coal industry can be negative in 2014, Moody' S Investors Service.

The negative forecast for the coal industry reflects weak liquidity and increased risks for some companies with a weak rating, while an increase in production extinguishes prospects for significant changes in prices. According to the report, the steel and coal industry of Asia in 2014 awaits an excess and weak prices. According to negative forecasts next year, the demand for steel will grow by 2-3 percent.

At the same time, the Chinese government cannot withstand the slowest growth of GDP and shifts the economic growth mechanism for domestic consumption and expenses for the development of infrastructure. The Chinese government reduces ineffective steel objects, encouraging the majority of large manufacturers in the region. Nevertheless, uncertainty against the timing and scale of power reductions remains.

The report says that "we expect that coal prices will remain at the same level $ 80 - 85 per ton, and the coke will be at the level of $ 150 per ton next year." However, the uncertain regulatory framework in China and India, the largest importers of coal and in Indonesia, the largest coal exporter, retains uncertain dynamics of demand and demand in the coal industry.