In recent years, China's steel industry has achieved many global leading achievements. However, there are still some deep-seated contradictions and problems in the period of rapid development. First, the demand for steel de-capacity is not compatible with the structural reform of the supply. Second, the industrial structure is not compatible with market competition. Although the concentration of the steel industry has improved, there is a big gap from the target of 60%. Although the industrial layout has improved, it is still unreasonable and the efficiency of social resource allocation is low. China's steel industry is also facing the problem that the level of green development is not compatible with the needs of the ecological environment.
Since the beginning of this year, due to the contradictions and slowdown of the real economic contradictions and the soaring prices of raw materials, the high profitability of the steel industry has not been able to continue, and there has been a trend of increasing in production but not in efficiency. With the marginal decline of the de-capacity pull effect, the deep-seated problems hidden in the past two years due to the surging steel prices will gradually emerge. If these problems are not solved, it will lead to a serious imbalance between the supply and demand ,and even the fully loss in steel industry.www.rogosteelpro.com