Why China's steel industry can rise against the trend

As the epidemic swept the world, due to the high degree of globalization of the steel industry and the close connection with the development of the world economy, the global steel industry suffered heavy losses, and global steel production hit the largest decline since the financial crisis broke out.

According to the analysis of the World Steel Association, during the epidemic, global steel production fell by 11% to 68 million tons, the highest decline since 2009. Among steel producing regions other than China, the EU fell by 20%, followed by India. , Japan, South Korea and the United States.

On April 21st, the world-famous mining company BHP Billiton pointed out in its assessment report that China’s production activities continued to heat up after being stimulated by credit and financial support policies, and the blast furnace utilization rate rose to nearly 79% in April, compared with 73% in the same period last year. The demand for reinforcing steel is also at or above the normal level during the same period.

At the same time, China is also the largest consumer of iron ore, the main raw material for iron and steel products. Iron ore demand accounts for about 60% of world iron ore consumption. This huge demand supports the iron ore industry in some countries.

At the same time, the analysis reported that the steel market is now seriously unbalanced and highly dependent on China. Under the epidemic, the massive reduction of steel production in countries and regions other than China has made China's unique situation even more prominent.