This year, China continues to implement the policy of reducing crude steel output to curb the rapid growth of crude steel output, which is conducive to the balance between supply and demand in the steel industry. And the market demand “peak season is not prosperous”, to the operation of the steel industry to bring new troubles.
Since March, the domestic epidemic showed a trend of local aggregation and multi-point distribution, and the downstream steel demand started slowly. Iron and steel market “gold three silver four” market did not come as expected.
“Pent-up demand in the early stage will not disappear, and overall demand will improve in the later stage.” Shi Hongwei, deputy secretary-general of cISA, said China’s GDP growth target for this year is around 5.5 percent, with stable growth as the main theme. Steel consumption in the second half of this year is not expected to be weaker than in the second half of last year, and this year’s steel consumption will be basically flat with last year.
The 11th meeting of the Financial and Economic Commission of the CPC Central Committee on April 26 stressed comprehensive efforts to build a modern infrastructure system, which has encouraged the steel industry.
Infrastructure construction is not only the key field of steel consumption, but also one of the core areas of stable steel consumption, which has a very obvious direct driving effect on steel consumption. According to estimates, in 2021, the consumption of steel for infrastructure construction is close to 200 million tons, accounting for about one fifth of the country’s steel consumption.
Li Xinchuang, party secretary and chief engineer of metallurgical Industry Planning and Research Institute, believes that considering the impact of infrastructure investment steel consumption intensity and price factors, infrastructure construction is expected to drive the increase of steel consumption of about 10 million tons in 2022, which is of great significance to stabilize steel demand and enhance demand expectations.
This year the situation, cisa analysis thinks, late under the country’s steady growth targets, with the ease of epidemic situation and multiple policies, steel demand will accelerate release, iron and steel production gradually returned to normal, demand growth is greater than the output growth, is expected to market supply and demand pattern will be improved, the steel industry overall will keep running smoothly
Post time: May-13-2022