Steel production is expected to improve in the second quarter and normalize in the second half of 2020, according to the China Iron and Steel Association (CISA). The association stated that the epidemic will induce suppression of growth in the near term, but it will be soon followed by a rise in economic activity reviving steel demand. CISA expressed optimism that the government’s counter-cyclical policies will continue alongside various measures to stabilise growth and improve the steel sector’s production and operation in the second quarter.

 

CISA acknowledged that raw material and finished steel price fell sharply in China following market disruptions caused by coronavirus outbreak. The impact of the epidemic will be felt in the first quarter as panic selling, restriction on transportation and fewer market transactions have lowered the price of steel.

 

The association has advised steel companies to maintain stability by analysing market trends and adjust the production in accordance to demand and avoid undue competition and price cutting. CISA has asked steel mills to rework their output considering their order books, funds and transportation.

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