In 2020, the average price of domestic steel market will move down further

The year 2020 marks the end of China’s efforts to complete the building of a moderately prosperous society in all respects and the 13th five-year plan. By 2020, the transformation of the steel industry to achieve ultra-low emissions will be effectively promoted, the green development of the steel industry will be accelerated, and the green development of the steel industry will be promoted to a new level.The steel industry merger and reorganization tide will also be unstoppable, the steel industry will usher in the “era of big steel enterprises”; At the same time, the industry will also intensify the reform of mixed ownership, and the market vitality and international competitiveness of steel pipe suppliers will be further enhanced.

Since 2018, investment in the steel industry has been gradually increased with the promotion of ultra-low emission upgrading and capacity replacement projects.In 2020, the steel industry will usher in the centralized production of iron capacity replacement projects. Monitoring data from Lange steel research center shows that in 2020, the steel industry will build 60.47 million tons of new iron-making capacity and close 82.12 million tons of iron-making capacity.New steel production capacity of 62.08 million tons was built and steel production capacity of 81.79 million tons was closed. Glass greenhouse is also widely built, which lead to a increase of various steel pipes.

After the replacement of the technical equipment level significantly improved, the new production capacity on the industry supply impact is still not negligible.Crude steel output is expected to continue to grow in 2020, with the growth rate slowing due to the expansion of the base. Crude steel output is expected to be about 1.03 billion tons in 2020, with a year-on-year growth rate of about 3%. In 2020, remained steady growth is the key of the China’s economic development, fiscal policy will continue to palm economic development, expand infrastructure construction investment to promote the steady growth in the manufacturing industry, the government investment to play a good “steady growth” backbone role, in 2020 China’s economic growth is expected to 6.0%, China’s steel demand of aluminium curtain wall will continue to maintain steady state. Under the continuous impact of the overall tightening of financing, cooling of sales and negative growth of land purchase, real estate investment will continue to fall. As a large number of projects started in the past two years are completed, investment in property will shift to the back, with completion stronger than construction. As an industry with a large amount of steel consumption of round steel pipe in China, the steel consumption coefficient from the new construction to the completion of the foundation project is large.