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In the first quarter, the actual steel consumption of my country's major steel-using industries decreased by 5% year-on-year. Under multiple pressures, the traditional peak season of the steel market is not prosperous, and the demand for steel is lower than expected, which is expected to be gradually released in the later period.
This is what the reporter learned at the information conference held by the China Iron and Steel Association on the 25th. Qu Xiuli, vice-chairman and secretary-general of China Iron and Steel Association, introduced at the meeting that in the first quarter, actual steel consumption in my country's major steel-using industries fell by 7% in the construction industry and 2% in the manufacturing industry.
Qu Xiuli analyzed that from the demand side, my country's vigorous promotion of infrastructure investment is conducive to stabilizing demand expectations in the steel industry. However, due to the recent domestic epidemic, the construction of the construction industry has slowed down, and the growth of the manufacturing industry has been sluggish, and the demand for steel in the first quarter has been suppressed. In addition, the international environment is more complicated, and the import and export of steel has decreased year-on-year.
The reporter learned that the sales volume of excavators, which are the "barometer" of infrastructure construction, was also lower than expected. According to statistics from the China Construction Machinery Industry Association on 26 excavator manufacturing companies, domestic excavator sales in March 2022 fell by more than 60% year-on-year, reflecting the slow progress of infrastructure projects.
From the perspective of the supply side, in the first quarter, affected by multiple factors such as domestic heating season staggered production, epidemic closure and control, and other factors, iron and steel enterprises reduced production and stopped production more; affected by the rise in international commodity prices, iron ore, coking coal, etc. The prices of raw materials and fuels remained high.
Under the overall balance of market supply and demand, steel prices rebounded slightly. According to the monitoring of China Iron and Steel Association, at the end of March, the price of steel increased year-on-year. "We implement flexible production to ensure maximum benefits. It is expected that the market will pick up in April, and we will start production at full capacity." said Zhou Jiping, director of the Environmental Protection Office of the Energy and Environmental Protection Department of China Baowu Meishan Iron and Steel.
