Although China's major steel producing cities need to reduce production by 30% due to the production reduction policy, China still dominates the global steel market.
According to mining giant Vale, production will fall in the fourth quarter as the price of iron ore drops, and if prices are still weak, production could drop by another 12-15 million tons next year.
In the long run, the solution to global decarbonization with limited green hydrogen steelmaking technology is to increase the utilization rate of scrap steel.
China will continue to produce scrap steel, reaching a weld volume of 300 million tons by 2025, including its own production of 240 million tons. Part of the source will definitely depend on the import.
As for steel supply and demand, there will be a worldwide shortage of steel supplies next year as China's production declines.
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