4140 steel provider OTAI shares the steel news with you.
Nowadays, we can find the pandemic affect every aspect of society .however, as a member of 4140 steel provider OTAI company, I ‘d like to talk about what influence it causes to the steel industry.
4140 steel provider-OTAI, supplies a wide range of steel products. including high-speed tool steel, cold works tool steel, hot works tools steel, plastic mold steel, engineering steel and machine structural steel, etc. After almost 20 years of development and growth, Otai Steel becomes one comprehensive special steel factory. Although the epidemic isolates the people, however, it can’t isolate the service.
4140 steel provider OTAI shares the steel news with you.
Coronavirse as a “global pandemic”. The complexity and diversity of national governance and the region have brought many uncertainties to the epidemic prevention and control. The global steel industry is facing a more complicated situation.
The hardest-hit areas of the epidemic contain 8 contries. They are China, Italy, South Korea, Spain, Germany, France, and the United States. Mainly look at the impact of the severely affected areas on the global steel industry.
The linkage between the steel industry and the economy can be considered from three aspects.
The first is relevance to the local economy. This can be simply observed by the ratio of apparent steel consumption to GDP. The larger the ratio value, the greater the proportion of industry in economic activities. the greater the impact of economic growth on steel. China and South Korea are significantly higher than the global level, and the local economy is strongly related to steel.
The second is the relevance to global trade, which can be observed by the scale of imports and exports. In 2018, the 8 countries’ contribution to the global steel trade was 70%, and the global trade of steel in 8 countries is intertwined. The outbreak of the epidemic will most likely harm the global steel trade.
The third is the relevance to indirect import and export products. Part of the steel is directly exported, and another part is through the import and export of finished products. such as steel products for mechanical and electrical, automotive, and home appliances. the impact of the epidemic on the steel industry in eight countries will have a significant impact on many industrial supply chains.
Generally speaking, the steel industry is very important in the global economy and supply chain system. The hardest-hit areas matter a lot, and the impact of the epidemic will have a profound impact!
