China's steel market to face more pressure next year
Time:Wed, 29 Dec 2021 10:27:41 +0800
keywords :
During the epidemic, countries around the world implemented loose monetary policies, which pushed up the prices of commodities. As the epidemic gradually subsided, the Federal Open Market Committee (FOMC) officially announced that taper should be accelerated, which also meant that the era of loose monetary policy is coming to an end, and commodity prices are facing downward pressure.
In addition, this year, under the influence of the reduction of crude steel output, the "dual carbon" policy, and the sharp increase in raw material and fuel prices, the steel output in the second half of this year has dropped significantly, or will be lower than last year's level.
Therefore, if there is a shortage of supply in the market next year, steel mills will inevitably increase production under the stimulus of high profits and high demand, which will lead to a substantial increase in supply.
In the case of a limited increase in China, due to changes in domestic and foreign policies, China's steel market may face greater pressure next year.
