“It is expected that the overall market of China's steel industry will be more optimistic in the next three years,” said Zhang Longqiang, deputy dean of China Metallurgical Industry Planning and Research Institute and executive vice chairman of China Metallurgical Association Metallurgical Committee.
From the 17th to the 18th, the 2nd China Metallurgical Water System Energy Saving Technology Seminar, organized by Jiangxi Sanchuan Energy Saving Co., Ltd. and hosted by the China Energy Conservation Association Metallurgical Industry Energy Conservation Professional Committee and the Metallurgical Industry Planning Research Institute, was held in Yingtan City, Jiangxi Province.
From the fourth quarter of 2011 to 2015, under the dual pressure of low demand and high production capacity, China's steel industry entered an unprecedented “cold winter” and the industry suffered serious losses. Since 2016, the Chinese government has begun to intensify efforts to resolve excess capacity and strike down the strip steel. The market order has been restored and the supply and demand situation has gradually improved. In the first half of this year, the steel market prices have generally maintained steady growth. Zhang Longqiang said that under the premise of the overall improvement of the national economy and the tremendous progress in the production capacity of the industry, the business situation of the steel industry has gradually improved.
Looking ahead, Zhang Longqiang said that as China continues to deepen its efforts to resolve excess capacity and continue to promote capacity reduction and replacement of peak production, the quality of steel supply is gradually increasing and the number is declining. The market will be more optimistic in the next three years.
Speaking of the impact of recent Sino-US trade disputes on the steel industry, Zhang Longqiang said that although the impact of the trade war on the Chinese steel industry is the first to bear the brunt, the overall impact is small. He said, “In terms of direct exports, the total amount of steel exported from China to the United States is about 1 million tons, accounting for about 1.6% of total exports. Indirect exports, although they will have an impact on machinery, home appliances, equipment, etc., the overall impact is not too big. China's steel companies and industry products are mainly to meet domestic demand.”
Zhang Longqiang said that although China's steel industry has recovered, steel companies must also clearly understand that the more they are in a good situation, the more they need to be prepared for danger, the more they must consider the long-term, and pay full attention to energy conservation, environmental protection and green development of enterprises.