according to the national development and reform commission announced because quarter steel production growth too fast, inventories have risen sharply, so in the second quarter of the steel market situation is not optimistic. At the same time, due to the slow economic recovery, the international trade friction and trade protection significantly increased, the export of steel products will further increase the difficult in our country.
Announcement, pushing new urbanization in China is conducive to boost market confidence, at the same time, car, home appliance and other industries is expected to remain modest growth this year, steel demand growth fundamentals remain positive. But the money is tight, and environmental protection, energy saving and emission reduction in the first half of output growth may be lower than in the first quarter. Because in the first quarter steel production growth too fast, inventories have risen sharply, so in the second quarter of the steel market situation is not optimistic.
Since this year, due to the slow economic recovery, significantly increased international trade friction and trade protection. Next year in the European Union, the United States, Australia, Canada, Malaysia, Thailand, India and other countries and regions of our country iron and steel products launched anti-dumping and anti-subsidy investigation and trade protection measures, involving more than 10 cases. Along with the increase in trade friction, the export of steel products will further increase the difficult in our country.
In addition, with resources, speed up the pace of energy price and tax reform, enterprise investment, operation cost increases in energy conservation and environmental protection, cost gradually increase. February 20 this year, the railway freight ton-km average price increase of 1.5, affect the steel industry in more than 200 one hundred million yuan. At the same time, the enterprise financing costs rise, 1 ~ 2 in large and medium-sized iron and steel enterprise financial cost year-on-year growth of 14.35%.
It is important to note that the original burning material such as iron ore prices with steel price movements are not synchronized, is the main factor affecting the iron and steel enterprise benefit. End of march, China's imported iron ore cif $140.35 / ton, compared with last year lows in late September, or 61.9%. At the same time, metallurgical coke, scrap steel prices are also rising. Considering the high raw material cost of carry forward hysteresis, high ore price in the first quarter of this year will increase the cost pressure, the second quarter is expected to continue low profit.
On the whole, the overall market environment in iron and steel industry this year will be better than last year. As traditional demand season coming, in the second quarter of the steel market demand will be increased, but due to large scale of production capacity, production costs are high, the operating performance is difficult to a fundamental improvement in the iron and steel enterprises