ASG News: resilience of demand

In 2020, we are not pessimistic about steel demand. The real estate industry is expected to continue to show a high degree of resilience, as the start end weakens, the completion end strengthens, the real estate end consumption may fall back moderately. With the landing of various infrastructure policies, the growth rate of infrastructure investment in China is expected to rise steadily, making up for the steel consumption affected by the decline in real estate demand.

Inhibition of production capacity and release of production

In 2020, China's capacity reduction replacement project will be put into production, in the policy adhere to consolidate the achievements of iron and steel overcapacity, industry compliance capacity is expected to continue to decline. As far as output is concerned, with the promotion of ultra-low emission transformation, the intensity of environmental protection and production restriction may continue to weaken, while the switch of electric furnace is flexible, and the supply of scrap in China is increasing, so the role of electric furnace in output regulation is expected to be gradually enhanced. Due to the inhibition of production capacity and the release of production in the integrated industry, we expect the national crude steel production to increase by about 20 million tons in 2020.