According to the annaliysis in reference materilas,The Chinese steel market is expected to face the following trends in 2025 :
1.Weak market demand: The apparent consumption of crude steel in China is expected to decrease slightly.From 897 million tons in 2024 to around 890 million tons. The weakness on the demand side is mainly due to the weak economic recovery and adjustments in the real estate market . Especially the slowdown in demand growth in the construction and manufacturing industries.
2.Policy support : Despit facing both internal and external difficulties , the positive guidance of policies will play an import role .The Central Economic Work Conference proposed implementing a more proactive fical policy and a moderately loose monetary policy . Which may help stabilize the market.At the same time ,the promotion of dual carbon policies and the withdrawal of outdated production capacity will increase industry concentration and alleivate supply -damand contradictions.
3. Cost pressure: Fluctations in iron ore and coke price may exacerbate cost pressure,especially as iron ore prices are affected by changes in the global supply pattern,which may bring certain fluctuations,Meanwhile ,the competition for scrap steel resources may also affect costs.
4. Export Pressure: Despite a 22.7% increase in exports,the base is relatively low,and later trade frictions and the intr0duction of preliminary sanctions may suppress exports.the continuous decline in overseas supply has created certain space for China’s steel export.
5. Market sentiment: Some steel mills have suspended production for 1-2months ,indicating a lack of market confidence. But the implementation of the “Two Sessions”policy may boost market sentiment and drive price recovery.
In summary ,The steel market is expected to show a moderate upward trend in 2025, But the increase is limited,and attention should be paid to changes in policies and supply and demand.
Post time: Mar-13-2025