CISA: Rapid recovery of China's economy results in significant growth in iron and steel demand
2020-09-27 11:10:08 [Print]
On 26 September, He Wenbo, Party Secretary and Executive Chairman of China Iron & Steel Association (CISA), stated that the market shares of China's iron and steel production in global market rose sharply after the outbreak of COVID-19 as China took effective measures against the pandemic and the economy kept recovering.
According to He Wenbo, China's crude steel production accounted for 58% of the global production in the first eight months of 2020, while recorded a proportion of 53.3% for the whole year of 2019, and the pig iron production accounted for 68% of the global production. China's import volume of iron ore accounted for 71% of the global exports and totally imported 760 million tons from January to August 2020, up by 11% from the corresponding period last year. After the outbreak of COVID-19, the market shares of China's iron and steel production in global market increased significantly.
He Wenbo attributed the change to the big gap between the pandemic prevention effects of China and those of major economics as well as the obvious difference between the main iron and steel production process and structure of China and those of major steel producers, mainly indicating electric furnace proportion and steel scrap application proportion. He highlighted that the proportion of structure was a temporary and short-time phenomenon in the special period and is changing with improving situation in the world.
He Wenbo also mentioned another temporary phenomenon in China's iron and steel industry in 2020, which was net import of crude steel. He explained that the phenomenon was resulted from the big gap between demand in Chinese market and that in overseas market, significant price gap in iron and steel products and the highly opened Chinese iron and steel market. China's steel exports declined notably after the outbreak of COVID-19, but the imports of steel billet increased rapidly.
According to He Wenbo, China's crude steel production accounted for 58% of the global production in the first eight months of 2020, while recorded a proportion of 53.3% for the whole year of 2019, and the pig iron production accounted for 68% of the global production. China's import volume of iron ore accounted for 71% of the global exports and totally imported 760 million tons from January to August 2020, up by 11% from the corresponding period last year. After the outbreak of COVID-19, the market shares of China's iron and steel production in global market increased significantly.
He Wenbo attributed the change to the big gap between the pandemic prevention effects of China and those of major economics as well as the obvious difference between the main iron and steel production process and structure of China and those of major steel producers, mainly indicating electric furnace proportion and steel scrap application proportion. He highlighted that the proportion of structure was a temporary and short-time phenomenon in the special period and is changing with improving situation in the world.
He Wenbo also mentioned another temporary phenomenon in China's iron and steel industry in 2020, which was net import of crude steel. He explained that the phenomenon was resulted from the big gap between demand in Chinese market and that in overseas market, significant price gap in iron and steel products and the highly opened Chinese iron and steel market. China's steel exports declined notably after the outbreak of COVID-19, but the imports of steel billet increased rapidly.
