Global Steel Industrial have effected by COVID-19 – Preview
The global crisis, a large number of steel mills shut down! 40% of domestic steel mills lost money, and European steel prices fell back to 2009
In January-February, China Steel Association’s steel companies have lost more than 40% of their losses
Now member steel companies are basically on the brink of loss
The spread of the epidemic has exceeded all expectations, and the situation facing the steel industry and the market is confusing.
Chi Jingdong, vice chairman of the China Iron and Steel Association, said: “No one expected that it would be as serious as it is now. The whole world has reached a situation that is a little bit out of control. The new and old problems of the Chinese steel industry are superimposed and under the impact of the epidemic, Where will it go again? ”
Two months ago, the Chinese steel companies at that time were in an awkward position: the raw materials were difficult to enter, the materials were difficult to come out, and the inventory was rising … A person in charge of a large state-owned steel company told the Economic Observer, “The first quarter It ’s good to lose money. ”
the expertise’s prediction about the steel market
However, Chi Jingdong introduced, “The loss of member steel companies in January-February has exceeded 40%. Now the profit margin of member steel companies has fallen to almost 1%, which is basically at the edge of loss.”
His prediction for the future steel market is: In the short term, April steel prices will fluctuate within a narrow range with high probability. It is not always possible that profits will drop sharply, but good benefits are also difficult. If the foreign market is not good after April and May, at least the steel price in the first half of the year will be unsatisfactory. If the epidemic is delayed until June or July, the impact will be greater.
Chi Jingdong believes that this year the steel industry and the market are at great risk, and it is recommended that steel enterprises should be prepared to deal with the market decline.
In this steel test, the difficulties, problems and even deep-seated contradictions of the entire industry and enterprises themselves were exposed.
Ms Florence Lin
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