China Iron and Steel Association: In the first 8 months, China's crude steel production accounted for 58% of the world's total, and demand for steel production increased significantly.

He Wenbo, Secretary of the Party Committee and Executive Chairman of the China Iron and Steel Association, pointed out at the 2020 (11th) China Iron and Steel Energy Conservation and Emission Reduction Forum on the 26th that due to the country’s proper response to the epidemic and the continuous economic recovery, China’s steel production during the epidemic is greatly improved.

He Wenbo pointed out that in the first eight months of this year, China’s crude steel production accounted for 58% of the world’s total, last year’s 53.3%, pig iron accounted for 68% of the world’s total, and imported iron ore accounted for 71% of global exports. A total of 760 million tons of iron ore had been imported and there was an increase of 11% year-on-year. During the epidemic, China's steel production scale increased significantly in the world.

He Wenbo pointed out that this phenomenon is mainly due to the huge difference in epidemic prevention effectiveness and economic recovery between China and the world’s major economies, as well as the obvious differences in the mainstream steel production process and structure between China’s steel and the world’s major steel-producing countries (mainly referring to the proportion of electric furnaces and The proportion of scrap steel applications).

He emphasized that such a structural ratio is a temporary and short-term phenomenon in a special period. As the epidemic situation in various countries improves, this structure is gradually changing.

In addition, He Wenbo also mentioned another phased phenomenon in China's steel industry this year-net crude steel imports. He explained that this was driven by the huge difference in domestic and foreign market demand and the obvious price gap of steel products, as well as the highly open Chinese steel market. Since the outbreak of the epidemic, China's steel exports have dropped significantly, and imports of steel billets have risen rapidly.

In the first eight months, China's steel production exceeded historical levels. "This is due to the significant increase in steel demand driven by China's rapid economic recovery." He Wenbo said that the amount of steel produced is not determined by the steel industry itself. Demand determines supply.

In August, China produced 94.85 million tons of crude steel, a year-on-year increase of 8.4%. In the first eight months, China produced 689 million tons of crude steel, a year-on-year increase of 3.7%. According to calculations by experts from China Iron and Steel Association, actual steel consumption increased by approximately 3.4% year-on-year.

In recent years, China's economy has continued to maintain medium-to-high-speed growth in a complex and changeable domestic and foreign environment. In the past three years, the intensity of steel consumption (the proportion of steel consumption in GDP) has risen instead of falling.

• [Editor:zhaozihao]