Industry insiders: Steel prices next year slightly higher than this year, iron ore prices will be adjusted back

Qu Xiuli, vice president and secretary general of China Iron and Steel Association, said recently that the steel industry market in 2021 will remain relatively stable, with steel prices slightly higher than 2020.

Although has entered the winter, but overall, the steel industry situation remains stable.Qu said that in terms of the production situation, the steel industry is in good shape in 2020. Cisa estimates that crude steel output will exceed 1 billion tons this year, an increase of about 5% over last year.

"The steel industry has benefited from the support of the country's macro policies this year."Qu Xiuli said that macro-policy direction adjustment has played a great role in driving market demand.As for the market situation in 2021, she predicted that the steel industry market in 2021 would remain relatively stable, with steel prices slightly higher than that in 2020, but the overall trend would remain stable.But she also said steel companies need to organize production as needed to promote a balance between supply and demand in the market.

"But steel companies are also facing the problem of high raw material prices and the arduous task of improving efficiency."Ms. Qu said she expects a correction in iron ore prices in 2021.

Since entering October, China's steel market as a whole to maintain the supply and demand trend.However, judging from the current situation, steel output may continue to grow rapidly in 2021 and exceed 1.1 billion tons for the whole year, and the oversupply phenomenon is more obvious.Therefore, when the output is high and the cost of raw materials is high, problems will occur in the off-season demand and the pressure will be greater.The steel industry will face a big test before the end of next year, and the good macro economy will make prices "bottom" next year.

Qu said China's economy will continue to grow and market demand is expected to be stable in 2021, but the international trade environment will remain complex and raw fuel prices will remain high.In general, China's steel industry faces both opportunities and challenges, and needs to stick to the path of high-quality development.

CAI Jin, vice president of The China Federation of Logistics and Purchasing, said that during the 14th Five-Year Plan period, China's economic growth rate is 6-8%, steel apparent consumption growth is 3-4%, steel demand will have a certain room for growth, but high quality is the next step in the development of the steel industry must go.

CAI Jin believes that the development of the steel industry needs to grasp the high level of the industrial chain, accelerate the integration of upstream and downstream industries, and realize the sustainable development of the steel industry.

CAI jin said that in accordance with the "14th five-year" period of advanced, modern requirements, the iron and steel industry in the industrial base capacity to strengthen the weak points.For example, although the scale of our steel industry is more than 50% of the world, due to the limitations of raw materials such as iron ore and industrial concentration, the voice is still not in China.

At the same time, CAI jin said that the layout of iron and steel industry will shift from the previous layout based on production to the layout based on the industrial chain as the core, emphasizing the balance of the layout of the entire industry, the market space and industrial production space to link up, promote the industry in the process of the big cycle of self-cycle.