The steel market may stabilize at the end of the year, and supply and demand matching is the key.

Entering the fourth quarter, the black market continued to decline. At the video conference on the economic operation of some iron and steel enterprises in the third quarter of the China Iron and Steel Association held not long ago, He Wenbo, Secretary of the Iron and Steel Association Party Committee and Executive Chairman, pointed out: "The number one issue we face is how to meet the limited production capacity with sufficient production capacity. Demand." This sentence expresses the main contradiction facing the steel industry at present and for a period of time in the future. It can also be seen from the word "issue" that this is a problem that the entire industry has to face and solve together. In the two months of November and December, due to the consideration of the employment rate, the economy will maintain a steady recovery trend, and the steel market is expected to be stable and strong at the end of the year.

The reporter believes that the following issues in the current steel market deserve attention and analysis:

First, where is the peak value of my country's crude steel production? Data from the National Bureau of Statistics shows that my country's crude steel output will reach 1.065 billion tons in 2020 and 1.033 billion tons in 2021. 2022 is the third year of my country's fight against the new crown pneumonia epidemic. Will my country's crude steel output continue to decline year-on-year?

In the three years since the outbreak of the epidemic, my country's economic strategies and policy orientations for the steel industry have been different, and the pattern of steel supply and demand has also changed. Changes in steel demand are mainly reflected in the real estate industry, which consumes the largest proportion of steel. 2020 is a year of steady development of my country's real estate industry. The investment in real estate development for the whole year increased by 7% year-on-year, and the funds in place for real estate development enterprises increased by 8.1% year-on-year. In 2021, the "three red lines" policy will be implemented in the financing of real estate enterprises. The investment in real estate development for the whole year will increase by 4.4% year-on-year, and the funds in place for real estate development enterprises will increase by 4.2% year-on-year. In the first nine months of 2022, investment in real estate development dropped by 8% year-on-year, and funds in place for real estate development companies fell by 25% year-on-year. The market is not optimistic this year. What is the reason?