The structural reform of the iron and steel industry

In March 31st, the index report issued by the China National Association of iron and steel logistics (Specialized Committee) showed that the PMI index of the steel industry in March was 50.6%, and the ring rebounded by 1.1 percentage points, and returned to the top of the 50%.

In this regard, some experts believe that, in combination with the market performance in late March, market demand is expediting release, high storage pressure is gradually digested, and the supply and demand situation of steel market in April is expected to be improved, and the price of steel is expected to usher in a recovery. At the same time, there is also a view that the United States to increase imports of steel tariffs on China’s steel market has a certain impact, and now that steel prices rebound somewhat premature.

Trade frictions between China and the United States have little impact on steel

The judgment is that steel prices are mainly based on domestic supply and demand, and foreign trade is not a major factor. The current Sino US trade friction does not have much impact on steel. The proportion of China’s steel exports is not high, and exports to the United States are not many. Therefore, the current Sino US trade frictions have a direct impact on China’s domestic steel market, but this atmosphere is not a good thing, and it will have a certain impact on iron and steel. It should be said that the indirect effect is greater than the direct impact.

In March 31st, the index report issued by the China National Association for iron and steel logistics (Specialized Committee) showed that China Steel Association conducted pressure tests on the impact of the US steel and aluminum tariff on China’s steel. The results showed that the direct impact was less. Therefore, domestic steel enterprises should focus on ensuring the needs of domestic and major exporting countries, effectively organize production, and promote industrial restructuring, transformation and upgrading. But it should also be noted that China’s steel products that are ultimately supplied to American consumers through the global value chain may be much higher than direct exports. In order to maintain the global production chain, we should actively oppose unilateralism protectionism in the US.

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Post time: Jun-14-2018
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