Steel demand for manufacturing

The executive meeting of the state council in January 2020 determined measures to promote steady growth of the manufacturing sector.The meeting made it clear that we will continue to implement tax and fee reduction measures focusing on manufacturing such as structural glass curtain wall. At the same time, we will guide financial institutions to innovate ways to ease the difficulty and high cost of financing for small and medium-sized enterprises. We will steadily improve the quality and efficiency of the manufacturing sector and promote investment and development in the manufacturing sector through measures of “cost reduction” and “financing assistance”.

glass curtain wall

In 2020, the automobile and shipping industries will still face great downward pressure.Construction machinery and equipment machinery industry is expected to grow steadily.Currently, excavators, cranes and concrete machinery are performing well, and there is still a need to replace excavators in 2020. In the current favorable policy environment, infrastructure construction growth rate of green house garden is expected to continue to improve under the background, excavator sales will still have a small increase, construction machinery industry is expected to grow steadily in 2020. Driven by the national policy of steady growth in the manufacturing sector and the growth of construction machinery, the demand for steel used in the manufacturing sector is expected to remain stable in 2020.

Steel market is still a challenge in 2020, China will vigorously promote the reform and innovation, counter-cyclical regulation policy will speed up the ground, expand the effective investment in infrastructure to repair short board, enhance toughness domestic economic development of galvanized steel pipe, real estate investment will be eased, infrastructure investment is expected to rebound, manufacturing under the “steady growth” policy is expected to remain steady. From the perspective of the trend of the raw material market, the iron ore market price will return in 2020, and the coke price will continue to weaken. Although the transformation and operation costs of ultra-low emission facilities will increase, the weakening of the raw material price will weaken the support of the overall cost to the steel market. From the point of view of industry supply, replacement capacity will be centralized release, steel output will maintain the growth trend. To sum up, the contradiction between supply and demand in the steel industry will be reflected in 2020, especially after the concentrated production in the second half of the year. It is expected that the domestic steel market of multispan greenhouse will show a trend of high and low in 2020, with the average price of steel in China falling by about 5% compared with the previous year, and the profit level of the industry further declining.

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Post time: Mar-12-2021
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