How China’s steel industry will develop in 2020?
During the Spring Festival of 2020, the epidemic of the Novel Coronavirus (2019-nCoV) infection spread rapidly all over the country. The whole country is working together to combat the epidemic.In order to avoid large-scale population movement and gathering, prevention and control measures such as home isolation and extension of the Spring Festival holiday have been adopted.Affected by the epidemic situation, the transportation of steel enterprises is restricted, the steel market transactions are sluggish, and the prices of steel materials have fallen sharply, causing the enterprises to lose value,and some enterprises are even facing greater risks. As we all know, the steel industry is the pillar industry of the country and the pillar of national construction, prosperity, and national defense. So where does China’s steel industry go in 2020?
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As a professional supplier of pipe fittings, flanges and steel pipes, which are directly connected to the steel industry, we believe that the impact of the epidemic on the steel industry is mainly concentrated in the first quarter. With the end of the epidemic and the country’s efforts to regulate the counter-cyclical cycle, the overall operation will be first suppressing and then lifting. Analyse as below:
On the one hand, our country can unite as one to maintain the stable and healthy development of the industry. China has always been a united nation. Faced with such a disaster, the water is non-stop, the power is non-stop, the heating is non-stop, the communication is non-stop, the supply of daily supplies is non-stop, hundreds of millions of people are isolated at home, they are treated for illness, the social order is not disordered, the state machinery is operating normally and methodically. China’s power is unimaginable in the world.
On the other hand, our companies can calmly respond and recognize the situation. The industry’s production and operation situation in the first quarter is not optimistic. However, as the country’s counter-cyclical adjustment policy continues to increase and various stable growth measures are continuously implemented, steel demand will usher in a wave of concentrated release. The steel industry’s production and operation situation will improve in the second quarter. Looking at the whole year, the overall situation is better than last year, and the overall operation will show a trend of restraining first and then rising. With the thorough control of the epidemic and the active response of the state and governments at all levels, the situation will be better in the second half of the year.
Plastic lined flanged steel pipe finished in Haihao Group
The steel industry is an important basic industry of the national economy and an important symbol of the national economic level and comprehensive national strength. We live in the best era of Chinese history. We throughout the country firmly believe that the impact of the epidemic will be periodic and will not change the long-term positive situation of the Chinese economy. Demand for steel is only delayed and will not disappear.