Demand in the steel industry may increase in the second and third quarters

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Luo Bingsheng, executive vice president of the China Iron and Steel Association, said at the association’s first industry information conference for 2009 held on the 23rd that there would be no significant increase in demand in the steel industry during the first quarter; the conditions for a recovery in the industry are not yet present, and it is possible that demand will start to rise only in the second or third quarter. Luo Bingsheng pointed out that the supply and demand balance in the steel industry is currently unstable, steel prices are remaining low, and a number of small steel mills have ceased operations. Only by expanding domestic demand can relative stability between supply and demand be achieved. Furthermore, the decline in prices of iron ore and fuel is also a condition that enables the industry to operate at reasonable costs. It is reported that in 2008, the apparent consumption of crude steel in the domestic market was 452.86 million tons, an increase of 2.94% compared with the previous year. During the first half of the year, the apparent consumption of crude steel was 243.32 million tons, representing a year-on-year increase of 16.31%, which constitutes an exceptionally high level of growth and indicates a continuous accumulation of risks in the second half of the year ； In the second half of the year, the apparent consumption of crude steel dropped to 209.54 million tons, a decrease of 9.22% on a year-on-year basis, indicating a significant decline in domestic market demand. Luo Bingsheng said that due to factors such as the international financial crisis, the cyclical downturn in China’s economy, and the high degree of dependence of China’s steel industry on foreign sources, there were many uncertainties throughout 2009, making it difficult to draw clear conclusions. It was necessary to continuously monitor the situation and take actions based on actual conditions to promote the stable development of the steel industry. This post was last edited by laomao123 on 2009-2-25 09:39.]