Steel New Deal has a long-term positive short-term positive

After the Chinese government officially announced the "Steel Industry Development Policy," it immediately triggered the thinking of steel industry peers in neighboring countries and regions. According to overseas experts, China's steel and metallurgical enterprises will be greatly reduced according to the development goals of China's steel industry. Among them, many of the more controversial small and medium-sized steel mills will consider whether they have core competitiveness and decide to restructure or withdraw from the market due to large-scale competition. Advantages, China's total steel output will not change much.
In addition, the policy also sets the threshold for technology and scale through the formulation of technical policies and enterprise scale, and improves the access level. Foreign investors investing in the steel industry in China do not allow holdings in principle. The outside world said that China's steel industry investment is overheated and its production capacity is expanding, which is the most worrying. China's formulation of the steel industry development policy and timely regulation in setting up factories will effectively curb local blind investment and control the risk of steel price plunging, which will help the domestic demand market to stabilize and thus benefit overseas steel suppliers. However, in order to avoid being eliminated, Chinese steel mills will cut prices and promote market share in the near term, which may cause shocks. However, once China's steel industry completes structural adjustment and the scale of the company is becoming more reasonable, it will face new challenges and tests for the entire international market.


The authenticity of this information has not been confirmed by the international electrical network, for your reference only.
From:World Metal Guide

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