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Economic situation and steel market trend this year

In 2021, the overall economic operation of the machinery industry will show a trend of high in the front and flat in the back, and the annual growth rate of industrial added value will be about 5.5%. The steel demand generated by these investments will show up this year. At the same time, the popularization of vaccines will further reduce the impact of the epidemic on the economy, thus promoting the growth of production and consumption.
The state will highlight the construction of key areas, focus on “two new and one heavy” and make up for the weaknesses of the short board, and expand effective investment; We will accelerate the construction of 5g industrial Internet and big data center, implement urban renewal, and promote the transformation of old urban communities. The operating environment of the manufacturing industry will also be further improved, and the demand for steel is expected to remain stable. In the international market, affected by the epidemic, emerging markets and low-income countries will face more serious long-term trauma effects after the crisis due to limited policy space.
The world iron and Steel Association predicts that global steel demand will grow by 5.8% in 2021. The growth rate of the world is 9.3% except China. China’s steel consumption will increase by 3.0% this year. In the first quarter of 2021, the global crude steel output was 486.9 million tons, up 10% year on year. In the first quarter of this year, China’s crude steel output increased by 36.59 million tons year on year. The continuous increase of crude steel production has received strong attention. The national development and Reform Commission and the Ministry of industry and information technology have successively said that it is necessary to resolutely reduce the output of crude steel to ensure that the output of crude steel falls year on year. Guide the iron and steel enterprises to abandon the extensive development mode of winning by quantity, and promote the high-quality development of the iron and steel industry.
In the later stage, the market demand shows a weakening trend, and the balance between supply and demand is facing a test. As the weather turns cold and steel prices rise, steel demand has weakened. Iron and steel enterprises should pay close attention to market changes, reasonably arrange production, adjust product structure as needed, improve product grade and quality, and maintain market supply and demand balance. The international situation is still complex and severe, and the difficulty of steel export will further increase. As the overseas epidemic has not been curbed, the supply chain of the United States and Europe is still blocked, which has a great impact on economic recovery. Under the background that the pace of new crown vaccination is lower than expected, the recovery of global supply chain may be further delayed, and the difficulty of China’s steel export will be further increased.

Post time: Jul-03-2021