In 2020, China’s overall demand for steel will be far greater than supply, and prices will also rise due to the impact of the epidemic. The supply was affected by the policy, resulting in large price fluctuations. In addition, the production limit in 2020 will be significantly relaxed.
Due to the small variables in the supply of steel, high supply has become the norm, and the rise in raw material prices has squeezed the profits of steel mills.
Combined with the 2020 analysis, the overall 2021 supply and demand were roughly balanced and cost-supported. High supply will suppress prices.