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The changeability of the steel requires long-term preparation

In order to prevent the spread of the epidemic, from February to March, most upstream and downstream steel pipe suppliers in the steel industry delayed the start of construction, many major construction projects such as curtain wall building were stopped, and the real estate market cooled sharply, which caused a big impact on the domestic economy in the short term. According to the national bureau of statistics, the amount of investment in fixed assets (excluding rural households) in the first two months of this year was 3332.3 billion yuan, down 24.5 percent year on year. Among them, infrastructure investment fell 30.3 percent year on year, down 34.1 percentage points from December last year.

Curtain wall construction
Investment in real estate development nationwide fell 16.3% year on year, down 26.2 percentage points from December last year. On a month-on-month basis, fixed-asset investment (excluding farmers) fell 27.38% in February. From January to February, the added value of industries above designated size actually declined by 13.5% year on year. In February, the added value of glass curtain wall systems above the designated size fell 26.63% month-on-month. From January to February, the foreign trade data also performed poorly. The total import and export value of the country declined by 11.0% year on year, among which the total export value decreased by 17.2% and the total import value decreased by 4.0%. Due to the impact brought by the epidemic, the domestic economic construction has been affected, the steel demand of green house garden has also decreased significantly, the inventory has risen sharply, and the sales pressure of manufacturers has increased. Statistics from China iron and steel association show that in the first half of March, social inventory of 5 major steel products in 20 cities was 2.21 million tons, an increase of 1.16 million tons or 6.1% over the previous ten days. This is an increase of 13.39 million tons, or 196.3 percent, from December 2019.
In February this year, the price of rebar steel in Shanghai market fell by 360 yuan/ton, the price of high line fell by 290 yuan/ton, the price of cold coil fell by 230 yuan/ton ~ 290 yuan/ton, the price of hot coil fell by 380 yuan/ton, the price of medium plate fell by 180 yuan/ton ~ 220 yuan/ton. This February's steel prices fell as much as any other month in history. With the recent domestic epidemic gradually under control, enterprises have accelerated the resumption of work and production, and a large number of major infrastructure projects have resumed construction in various regions, and the steel demand situation has gradually improved. Moreover, the epidemic prevention and control should not be relaxed. Data from the general administration of customs on March 7 showed that from January to February 2020, China exported 7.811 million tons of steel of multispan greenhouse, down by 27.0% year on year.

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Post time: Jul-01-2021
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