Strong demand to pull steel production high operation at the same time, led to a substantial increase in steel imports. In the first 10 months, Chinas steel imports increased by 74% year-on-year, and steel exports decreased by nearly 20% year-on-year. Since June, a phased net import of crude steel has been formed.
Luo Tiejun said that this years steel consumption growth is unexpected, and this consumption intensity is abnormal. We should be rational and not overly optimistic. We should be relatively cautious in expanding production and ensuring supply.
In addition, as the prices of raw materials for iron and steel production, such as iron ore, coke and scrap steel, have risen significantly and remained at a high level. Although the benefits of the iron and steel industry are better than expected, they are still significantly lower than the average profit margin of the national industrial industry, and the profitability sustainability of the industry is facing a test.