Operation characteristics of China's steel market in the first half of 2020

In the first half of 2020, China's steel market mainly shows the following operation characteristics:

First, the demand for steel has "dropped sharply and increased sharply". After the occurrence of public health events, the downstream industries stopped work and stopped production in a large area, and the steel demand decreased rapidly in a short time. In the first quarter, the steel demand decreased by 17% year on year. With the effective control of public health events in China, the resumption of work and production in various industries has been promoted orderly, and the demand for steel products has gradually recovered. Since the late March, the steel market trading volume has exceeded the same period last year.

Second, steel production increased slightly. Due to the characteristics of continuous production in the iron and steel industry, the steel plant did not reduce production in a large area in the first half of the year, and the steel output increased slightly.

Third, the steel inventory is high, and the pressure of de stocking is unprecedented. Affected by a sharp decrease in demand and a slight increase in output, steel sales are not smooth and goods are overstocked. In mid March, steel inventory reached an all-time high. From the middle and late March, with the resumption of work and production and the recovery of seasonal demand, steel inventory continued to decline.

Fourth, the steel price first suppresses then rises. Affected by public health events, steel prices dropped significantly after the Spring Festival this year. In late April, steel market sentiment improved, steel prices began to rebound. At the end of June, China's steel price index CSPI reached 103.01, up 2.03% from the end of May.