China's crude steel production expected to exceed 1 billion tons in 2020
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Update time : 2020-11-03 16:49:21
According to estimates, China's crude steel production was expected to increase by 3%-5% year on year in 2020, which meant it will exceed 1 billion tons.
China's steel production growth this year was mainly supported by government investment in major projects. At the same time, the rapid recovery in demand for automobiles and home appliances was also the main reason for it.
Data showed that compared with January to February this year, the production growth rate of air conditioners, washing machines, freezers, and refrigerators in China in the first nine months of 2020 has increased by 814%.
China Association of Automobile Manufacturers (CAAM) estimated that from October 1 to 20, the automobile production of 11 major companies in China increased by 6.9% year on year, reaching 1.21 million units.
However, raw materials’ price of steel is keeping at a relatively high level, which limited the profits of steel mills. Due to strong iron ore prices, profit margins are still under pressure. In addition, the upcoming cold weather may give pressure on steel prices.
