In 2018, the overall operation of China's steel industry was stable, and the benefits increased substantially, basically eliminating excess capacity. However, in 2019, the situation facing China's steel industry is still grim, and the pressure to resolve excess capacity is still huge.
According to Li Xinchuang, president of the Metallurgical Industry Planning and Research Institute, although China's economic development will maintain a relatively steady growth trend in 2019, China's total steel demand is expected to decline slightly. According to forecasts, in 2019, China's steel demand was 800 million tons, down 2.4% year-on-year; crude steel output was 900 million tons, down 2.5% year-on-year.
This means that in 2019 China's steel industry will compete in a relatively shrinking market. At the same time, due to the general improvement in the efficiency of China's steel enterprises in 2018, this has led to the re-emergence of production capacity and the resurgence of “strip steel”, which has been repeatedly banned.
In addition, the industry contradictions and chaos that have been concealed due to the substantial increase in corporate profits in 2018 are still growing. Relevant industry experts said that in 2019, the situation of the steel industry was complex and changeable, and steel production and steel prices continued to grow without effective support.
In this regard, in 2019, the iron and steel industry should adhere to the requirements of the Central Economic Work Conference, adhere to the principle of steady progress, consolidate the achievements of “three to one, one reduction and one supplement”, focus on upgrading quality and efficiency, and accelerate the development of high quality.
