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Several key words respond to concerns about the steel issue

On April 19, of the 191 enterprises monitored by the CISA, 178 were in production and 13 had suspended production or not resumed production due to the epidemic. In addition, from the monitoring of the main production equipment, the key monitoring 136 member enterprises of the iron and steel association of the blast furnace, as of April 19, in the production of 87.4%. Among them, the failure to resume production of hydroponics green house is mainly due to the active stop-limit of production caused by the epidemic, or the implementation of stop-limit of production in autumn and winter in environmentally sensitive areas. The stop-limit measures of environmental protection have played a positive role in the steel industry’s response to the impact of the epidemic. In the first quarter, China produced 234.45 million tons of crude steel, up 1.2 percent year on year, and the average daily output was 2.5764 million tons, up 0.09 percent year on year. The epidemic has brought an unprecedented impact on China’s economic and social development and exerted a great impact on the demand for steel. According to the indicators of the steel industry in the first quarter released by the national bureau of statistics, the decline is obvious.

But the fall in steel demand of multispan greenhouse is only temporary. In the later stage, the implementation of the national policies to stabilize the economy and ensure people’s livelihood will provide a better external environment for the development of the industry. It is expected that the demand for steel will increase significantly compared with the first quarter. At the beginning of this year, cisa predicted a 2% growth in steel demand for the whole year. In February, cisa lowered its forecast to -0.5% based on the covid-19 situation in China. At present, cisa is making further revisions to the demand of structural glass curtain wall based on the impact of the international epidemic.
The problem of severe overcapacity in China’s steel industry has been basically solved. At present, the release of production capacity is adjusted according to the changes in the market. Due to the impact of the epidemic, there is a stage mismatch between production and actual consumption of curtain wall, but it is no longer a problem of serious excess production capacity in the original sense. Preventing the re-emergence of serious overcapacity has always been a risk point of great concern in China’s steel industry. From the perspective of the challenges facing the development of the industry, due to the impact of the epidemic, we should guard against the risks caused by the mismatch between the phased release of production capacity and the recovery of actual consumption that is not as expected.

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