In 2022, the Chinese steel industry faced a tough situation. The recession has caused real estate industry steel requirements to decrease. In the first eleven months of last year, the area of new housing construction decreased by 38.9% compared to the previous year, and steel demand down by more than 10%.
However, the supply remained high despite low demand. In the first eleven months of last year, China's crude steel production decreased by only 1.4% y.o.y.. Also, many steelmakers ran a deficit due to high raw material prices.
According to analysts; To keep the steel market stable, it would be a wise solution for steelmakers to control their production and focus on producing high-quality products.
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