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Affected by the epidemic, the steel industry, which has been growing rapidly for three years in a row, has fallen into a low ebb, encountering a series of problems, such as blocked exports, falling demand, high inventories and falling prices.

He Wenbo, Secretary of the Party committee of China Iron and Steel Industry Association, said recently that the epidemic had a great impact on the demand for iron and steel. According to the indicators of the main steel industry in the first quarter released by the Bureau of statistics, the demand dropped significantly.

Specifically, in the first quarter, the demand of large steel users declined significantly. Among them, the newly started area of real estate decreased by 27.2% year-on-year, the investment in infrastructure construction (excluding power, heat, gas and water production and supply industries) decreased by 19.7% year-on-year, the automobile production decreased by 45.2% year-on-year, and the shipbuilding completion decreased by 27.3% year-on-year.

The steel export also faces great pressure. He Wenbo said that affected by the epidemic, the demand for steel products in foreign countries dropped significantly, and the new orders received by major export enterprises in March and April decreased significantly on a month on month basis. Since the end of March, it has been common for overseas orders to delay delivery, and there have been some requests to reduce the number of orders or even cancel orders.

In addition, affected by the epidemic, the export orders of China's mechanical and electrical products, as the main export force, also decreased or even destroyed, so the steel demand of manufacturing industry is expected to decrease. If both direct and indirect steel exports fall by a quarter, steel demand will fall by 3.8% this year, he said. If the international epidemic situation worsens, the decline in steel demand will be even greater; if domestic demand expands to offset the impact of the decline in exports, the decline in steel demand will be reduced

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