Gu Jianguo, deputy president of the China Iron and Steel Association (CISA), stated at a steel industry forum held in Beijing on November 24 that China's steel industry will perform well in 2018 on the basis of its good performance in 2017.
According to Mr. Gu, in 2017 the elimination of low-grade construction steel has exerted a positive impact on China’s steel market, helping the market regain its supply-demand balance, promoting healthy competition and pushing up steel prices. He said that, accordingly, some steelmakers which had been suffering from long-term losses achieved profits in 2017.
The CISA official stated that the absence of low-grade construction steel supply to the market will positively affect the steel market in 2018. Meanwhile, environmental protection inspections will lower the steel outputs of some steelmakers, while there will be some new capacities arriving in the market. Overall, the supply and demand situation in the steel market will remain basically stable in 2018, he said.