On June 5-7, 2022, Steel Success Strategies 2022 was held jointly by World Steel Dynamics (WSD) and Fastmarkets. Mr. Wu Wenzhang, Founder and Chairman of Shanghai SteelHome Website was invited to attend the conference and delivered a speech titled as Based on the Dual-circulation Development Pattern, Chinese Steel Industry Has Opened up a Road of High-quality Development & Outlook of Chinese Steel Market in H2 2022. Due to the epidemic control and prevention in China, Mr. Wu was unable to attend the meeting in person, and the speech was delivered by Mr. Philipp G. Englin, CEO of WSD.

Key Points: (Full presentation is available for subscription)

1. Chinese steel industry has entered phase for high-quality development after 2021. The Chinese government does not support steel exports and cancels all tax rebates for steel exports. Chinese steel industry will continue to focus on meeting domestic demand and enter a new development pattern, in which domestic and overseas markets reinforce each other, with the domestic market as the mainstay.

2. The future high-quality development direction of Chinese steel industry is green, low-carbon and intelligent manufacturing.

3. In 2021, the crude steel output of China's top 10 steel mills accounted for 41.4% of the total output, and has formed a 100 million-ton steel enterprise group, three 40-50 million-ton steel enterprise groups and six 20-30 million-ton steel enterprise groups.

4. China will increase the exploration and development of domestic iron ore resources, and implement the reduction of crude steel output. The tight iron ore supply situation will be improved.

5. SteelHome believes that China’s steel demand in H2 2022 will rebounded significantly compared with H1 2022. The overall steel market prices will fluctuate at a high level.

Mr. Philipp G. Englin delivered a speech on behalf of Mr. Wu Wenzhang