Recently, China steel price is rising everyday, but still have a big short of the material, so crazy!

Actually China steel have broke the record the steel output in the world many times. The cumulative crude steel output in the first 11 months was 96159 million tons, increase 5.5%. Based on the average daily output in November, the total output of steel has exceeded 1.02049.8 billion tons and is expected to reach 1.05 billion tons on December 14; The output of steel in the first 11 months was 1.202 billion tons, a year-on-year increase of 7%, and the annual output will exceed 1.3 billion tons.It means China has bear more than half output of the world.

The main application of the steel is construction, machinery, automobiles, shipbuilding and other industries. The construction industry is the largest consumer of steel, accounting for about 55% of the entire steel consumption. The construction industry also includes real estate projects and infrastructure projects. Real estate is easy to understand, accounting for about three-quarters of the total construction usage, the most important being residential. Infrastructure projects mainly include railway construction, transportation construction and energy construction. The main types of steel for infrastructure construction are rebar (the first category) and wire rods, which account for about 40% of the total, plus various section steels such as angle steel, H-type steel, and railway steel.

Others may have a smaller proportion, such as about 2% in the shipbuilding industry, 1.4% in the hardware industry, about 1.5% in the pipeline industry, and about 1% in the container industry.

Why we didn’t feel such a lack of steel in the first half of the year? Due to the impact of the epidemic, many industries are in a recovery period. In the second half of the year, especially after the fourth quarter, indicators such as investment, exports, and industrial value added have continued to rebound, and have basically exceeded their pre-epidemic levels. For example, real estate investment increased by 11.5% in November; the automobile manufacturing industry increased by 11.1%; the special equipment manufacturing industry increased by 10.5%, the electrical appliances and machinery manufacturing industry increased by 18%; the output of metal cutting machine tools and industrial robots increased by 25.7% and 31.7% respectively, and the output of generator sets increased by 39.6%; Manufacturing exports have recovered slowly due to foreign manufacturing, and domestic export orders have also increased significantly.