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 .
In China, annual crude steel output was 1.03 billion tonnes, down 3.0 percent year-on-year.
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.
