CISA: Steel mills should be cautious about expanding production

Chinese steel industry has generally seen better performance than expected so far in 2020 thanks to more demand caused by the rapid recovery of national economy and the implementation of a series of policies for the decrease of taxes and fees during the spread period of Covid-19; however, steel mills still should be cautious about expanding production and ensuring supply in the future owing to the increase of uncertain factors.Asian Metal Copyright The steel industry has seen better revenues so far this year than expected as prices of iron ore, coke, steel scrap and other raw materials have risen sharply and stood at high levels for a long period of time, but the profit rate of steel industry has still been lower than the average level of national industry.Asian Metal Copyright This is the analysis made by Luo Tiejun, the Vice Chairman of the CISA, at the 2021 Coal, Steel and Coke Medium and Long-term Contract Negotiation Meeting.

According to Mr. Luo, steel mills should take a reasonable attitude towards the increase of the consumption volume of steel products and should be cautious about expanding production and ensuring supply instead of being too optimistic as the increase of consumption volume so far in 2020 is unexpected and abnormal.

The steel industry has seen better revenues so far this year than expected as prices of iron ore, coke, steel scrap and other raw materials have risen sharply and stood at high levels for a long period of time, but the profit rate of steel industry has still been lower than the average level of national industry. That is to say, there are still some challenges for Chinese steel industry to keep high profits in the long run.



.Asian Metal Copyright That is to say, there are still some challenges for Chinese steel industry to keep high profits in the long runAsian Metal Copyright