China Steel Industry Summit for 2020 Market hosted by SteelHome, was successfully held in Xiaoshan District, Hangzhou City, Zhejiang Province, during November 1-3, 2019. This summit was jointly held by Maanshan Steel Company, Ouyeel Co., Ltd and Youfa Pipe Group. Co-hosts were Shanghai Futures Exchange, Dalian Commodity Exchange, Xiamen C&D, China Minmetals Corporation, GTXsteel E-commerce and Henan Gang Duo Industrial. Over 1000 delegates from governments, associations, steel mills, miners, traders, research institutes and media attended the event.

Mr. Yan Lixin, Deputy General Manager and Chief Engineer of Hunan Valin Lianyuan Iron and Steel Co., Ltd, delivered a keynote speech titled Supply and Demand Analysis of HR and CR Products in 2020 on China Steel Industry Summit for 2020 Market.

Here is summary of his speech:

I Supply and Demand

During the period from January to August 2019, the output of medium wide steel strip, cold-rolled sheet, color-coated steel and electrical steel increased, while the output of hot-rolled wide steel strips, cold-rolled wide steel strips and plated steel dropped. From the supply and demand side, the output of HR and CR products totaled 263 million tons, roughly flat from last year. However, the apparent consumption was only 244 million tons, falling from the level of last year. The oversupply of flat steel will become acute considering the limited demand growth and the release of new capacity.

II Downstream Industry

The automobile industry has entered adjustment period, with its production and sales declining. Household appliance industry has slowed down. The growth rate of excavators, automobile heavy machines and road rollers keeps growing fast, and the steel demand is likely to increase. Steel demand from major industries such as automobiles, machinery, shipbuilding, hardware and containers will be sluggish.

III Conclusion

Steel Flats will face greater downward pressure due to the increasing new capacity, weak demand and oversupply.