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. Zhou Hui, Party Secretary of Sales Company of Guangxi Liuzhou Steel Group Co., Ltd, delivered a keynote speech titled Analysis of the Influence of Macro Environment on Steel Mills in 2020 on China Steel Industry Summit for 2020 Market.

Here is summary of his speech:

1. The United Nations Conference on Trade and Development (UNCTAD) issued the 2019 trade and development report on September 25, pointing out that under the threat of trade friction, exchange rate fluctuations, Brexit and other uncertain factors, the global economy in 2020 is facing the risk of turning to contraction.

2. Domestic economy is progressing steadily, the traditional manufacturing industry is facing transformation and upgrading, high-end manufacturing and information industry are developing well. Supply-side and demand-side reforms are constantly being optimized, and the ability of the central government to regulate economy and finance is also increasing.

3. Domestic steel market demand is expected to increase slightly, and the overall situation is that the supply exceeds the demand. It is predicted that the price of raw materials and fuels will run weakly, the price of steel will drop 200-400 yuan/t, the profit of steel mills will shrink, and the profitability of steel trade dealers will weaken.