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China Metallurgical News China Steel News Network

Reporter He Huiping reports

A few days ago, Wang Lianzhong, chief expert of the Research Institute of Metallurgy and Metallurgy and honorary chairman of the All-Union Metallurgical Chamber of Commerce, accepted an exclusive interview with a reporter from China Metallurgical News to analyze the trend of China's steel market in 2022. Wang Lianzhong said that in 2022, my country's economic development will face the "triple pressure" of demand contraction, supply shock, and weakening expectations. The domestic policy re-emphasizes economic construction as the center, promotes cross-cycle adjustment, infrastructure development, and monetary easing cycle, which is conducive to the steady progress of the steel industry and hedge against adverse market impacts. He expects that the total steel demand will have downward adjustment pressure in the short term, but there will be no cliff-like decline. In terms of steel demand structure, the "troika" of real estate, infrastructure, and manufacturing is differentiated. In 2022, steel raw materials will enter a loose window period, and the price focus will move down as a whole. From the perspective of the price cycle, the steel market price in 2022 will show a trend of low before and then high. Wang Lianzhong believes that the adjustment policy of the real estate industry has arrived at the end, but it has not yet reached the bottom of the market. Whether the real estate industry can confirm the bottom of the short-cycle market in the second quarter of this year is crucial to the steel market price and even the economic growth of the whole year. The strength of infrastructure investment and loose monetary liquidity will be able to hedge the impact of the adjustment of the real estate industry in the first half of 2022, and bring a round of rising prices to the steel market after the real estate industry bottoms out in a short cycle. He pointed out that the general keynote of economic development in 2022 is steady progress, and this year's steel industry policy will continue the keynote of 2021, strictly control new production capacity, and promote the green, low-carbon and high-quality development of the industry. Iron and steel enterprises need to do a good job in coping with market risks, improving concentration, optimizing carbon process reengineering, building carbon management systems, and improving energy efficiency ratios.