Impact Of New Crown Virus On Steel Market

- Apr 02, 2020-

        The "black swan" of the new crown pneumonia epidemic has had an unexpected impact on the operation of China and even the global economy, and the steel market is no exception. The new crown pneumonia epidemic is equivalent to melting out economic and social operations.

        For the steel market, the new crown pneumonia epidemic has reversed the original development trend to a certain extent, and has negatively impacted the entire industrial chain of the steel market, including upstream, middle and downstream.

        Specifically, the impact on the demand side of the steel market is greater than the impact on the supply side. As the world's factories (manufacturing) have stopped production or resumed work inadequately, the real estate industry is in a halt, and due to the extra high costs of logistics and transportation due to the epidemic, the demand side of the steel market has been negatively impacted. As for the production side (supply side), due to the heavy industry characteristics and intelligent characteristics of steel manufacturing enterprises, it is not difficult to resume production, and the important thing is government approval.

       When the steel market will return to the original development trend depends on the development of the epidemic situation and the economic impact of each situation. The epidemic trend is divided into three stages: development period, outbreak period and slowdown end period. The new crown pneumonia epidemic occurred in December 2019 and spread in January 2020, and concentrated outbreaks in January and February. The future situation is different, the impact will be different.

         The outbreak of the new crown pneumonia epidemic coincides with the Spring Festival. It is the peak season for consumption and the low season for production. Due to the epidemic situation, it turned into a low season for consumption and a low season for production. The short-term direct impact is concentrated in the field of consumption and in the field of life services.

         As of 2020.4.2, most of China's steel manufacturing and steel processing enterprises have resumed production. If you need to order steel pipes in China, please contact us. Our goods will be fully disinfected before shipment.