Steel oversupply pattern has not changed, the capacity will be long-term sustained process

Macro network on 3 August, steel prices in 2016 rose unilateral, the first half of 2017, steel prices fluctuate, continue to push the capacity policy under the background of Chinese steel market is facing a more complicated situation.

About the future of the steel market trend, recently, Institute of Industrial Economics Research Department of the State Council Development Research Center Director Xu Zhaoyuan said in an interview, 2012 to 2015, China overall steel market steel prices dropping fast, pile up in excess of requirement, unilateral until 2016 price rise, on the one hand is because in 2016 the iron and steel production capacity to reduce the capacity of action that reduces the yield; on the other hand, the real estate market is improved and the infrastructure projects launched a large number of demand for steel is increasing, the interaction on both sides of supply and demand, and quickly reversed the situation of oversupply.

Since 2017, the steel market has maintained the overall balance of supply and demand, but in the long run, the pattern of oversupply has not changed fundamentally.