Does the trade war big matters for the China’s steel industry?It is expected to have less impact on the steel industry,the trade war may not have a winner in terms of promoting economic development.
Recently, everyone is very concerned about the trade war. Does it have a big impact on China’s steel industry?
My colleague is humorous and said that as a foreign trade salesman, we must not only know the domestic news but also international news. International news also affects the steel market. Today, let’s explore the impact of the Sino-US trade conflict on the steel market, the essential reason is the conflict of interest between the two countries.
At present, the upgrading of China’s manufacturing industry is gradually squeezing the living space of the US manufacturing industry. The internationalization of the RMB shakes the status of the US dollar. The cooperation-based relations between China and the United States transfers to the competition-based relationship, it will inevitably lead to fierce economic conflicts.
- The cost of the direct export of steel to China is increased. The trade war has hindered the export of China’s steel products and increased export costs. As the impact of steel production accounts for less than 1% of the annual steel output, it is expected to have a limited impact on the steel industry.
- Impact on the raw material end at present, the main steel raw material involved in Sino-US trade is coking coal, and the initiative to increase the import tariff of coking coal is in our country.
- The impact on downstream steel products is limited, the demand for related machinery products in the United States will be reduced, and the demand for various types of sheet and strip used by the relevant manufacturing enterprises for the production will be reduced. In summary, the direct impact of Sino-US trade friction on China’s steel industry is minimal, and indirect impact exists but not large.
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Established in 1999, Otai Steel supplies a wide range of carbon, alloy, and stainless 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. Combined with the experienced exporting team and professional technical knowledge, Otai’s 42CrMo4 special steel is produced by the only one imported advanced steel making equipment. Welcome to send an email to us.
