On August 14-16, 2020, 16th Steel Development Strategy
Conference, hosted by SteelHome, was successfully held
in Shanghai Tower. Around 800 delegates from
governments, associations, steel mills, miners, traders,
research institutes attended the one of biggest events
in China steel industry.
9th International Raw Materials Supply Chain Summit,
10th Coal & Coke Development Strategy Conference, 8th
China Commodities E-Commerce Summit and 2020 SteelHome
Summer Report were simultaneously held.
Xia Shiqing, Chief Market Analyst, Senior Technical
Director, Maanshan Iron and Steel Co.,
Ltd,
delivered a speech titled Several Concerns in Chinese
Steel Market in H2 2020.
Xia Shiqing, Chief Market Analyst, Senior Technical
Director, Maanshan Iron and Steel Co., Ltd
Summary of speeches
1.
Epidemic Situation
The COVID-19 was rampant in the second quarter of this
year, but will not likely have great impact on global
market at this point. A majority of regions have resumed
work or production. However, whether the epidemic will
rebound at the end of this year or the beginning of next
year, we will continue to observe.
2.
Macro Policy
The meeting of the Political Bureau of the CPC Central
Committee set the tasks of poverty alleviation as a
decisive battle, completing the building of a moderately
prosperous society in all respects, and intensifying
efforts to ensure 'six priorities' and stability in six
areas. Up to now, we have achieved very good
results. The GDP grew by 3.2% in the second quarter year
over year.
3.
Steel Supply
At present, domestic steel production faces great
pressure, with new capacity releasing. In June 2020,
daily crude steel output was 130,000 tons higher than
that in the same period of last year.
4.
Industry Policy
In particular, the Ministry of Industry and Information
Technology issued Measures for the Implementation of
Steel Capacity Replacement. The requirement of steel
capacity replacement is very strict, which should have a
significant impact on the new capacity releasing in the
second half of the year.
5.
Steel Demand
In terms of time, the demand of construction steel
remains strong in the third quarter and is expected to
fall in the fourth quarter.
The third quarter is the traditional dull season for
flat steel market, but flat steel demand is acceptable
at this point. However, flat steel demand will not
likely increase sharply due to the rapid growth in the
second quarter. The fourth quarter will probably see the
robust growth in flat steel demand if global
manufacturing industry recovers. |