The problem of
overcapacity will exist “for a long time” and the risk of imbalance between
supply and demand will continue to grow, warned the Chinese company Angang Steel Company Limited.
In
2021, with the recovery of overseas economic activities, world crude steel
production totaled 1.95 billion tons, up 3.7% year-on-year and reaching a
record high.
At present, the world’s steel production capacity is approximately 2.36 billion
tons.
Even worse, in some developing countries new production capacities are coming
online one after another.
According to Angang Steel’s
point of view, China‘s “double
control” policy on production capacity and production in the steel industry has
played a positive role in consolidating the achievements of structural reforms
on the side of the economy. supply, maintaining market order, balancing steel
supply and demand, stabilizing steel prices and restraining the rapid rise in
imported iron ore prices, and improving the operating efficiency of enterprises
.
Overcapacity in the world
With
the repeated occurrence of the epidemic in China and abroad, and the continued
recovery of the world economy, under the influence of multiple factors at home
and abroad, the steel market fluctuated widely, the average price increased
remarkably, and the profit of the steel industry improved.
Angang
Steel pointed out that steel companies actively planned long-term development,
stepped up mergers and reorganizations and low-carbon design, but the steel
industry was still in an unfavorable situation characterized by poor raw
material security and High costs.
According to the company, the 14th Five-Year Plan for
Green Industrial Development and the Guidance on Promoting High-Quality
Development of the Iron and Steel Industry will accelerate the structure
adjustment in the iron and steel industry, while that reduction, green and low
carbon will be the development directions of China’s steel industry in the future.