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The epidemic hits, global steel companies actively fight the epidemic to ensure production

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The epidemic hits, global steel companies actively fight the epidemic to ensure production

Affected by the new crown pneumonia epidemic, global steel and upstream and downstream related companies have repeatedly cut production and stopped production since the beginning of 2020. Demand has shrunk, supply has been blocked, and they have faced high shutdown costs and greater cash pressure. In particular, the European steel industry has been hit hard again even when it has not fully recovered from the 2008-2009 financial crisis, and the situation is grim. Fortunately, the main iron ore producing area did not become the “severely affected area” of the epidemic, and the epidemic has little impact on the actual supply of iron ore, and the production and supply of other steel raw materials industries (metallurgical coal, scrap steel) have not been greatly affected. influences.

Global steel companies are actively fighting the epidemic to ensure production and adopt various measures to break through the predicament. For example, South Korea’s Pohang Steel bucked the trend through measures such as stock repurchases, industry mutual assistance, and the establishment of research institutes; India’s Tata Steel adjusted its operations in a timely manner, reduced production in Europe, strengthened India’s domestic business, expanded steel exports, and strengthened quality Products and special services, while actively seeking loan support from the local government; Germany’s ThyssenKrupp reassessed the group’s investment portfolio to accelerate the pace of diversified strategic transformation; etc.

It is worth mentioning that since the second quarter of 2020, as the epidemic in China has been basically brought under control, coupled with a looser fiscal policy and a more flexible monetary policy, as well as a boost in demand for traditional and new infrastructure, the Chinese economy has gradually recovered. China’s steel industry, which has more than half of the global crude steel output, has played an important role in helping the global steel industry get out of the impact of the epidemic and get back on track.

Media Contact
Company Name: Sino Stainless Steel Corporation Limited
Email: Send Email
Phone: +86-13816639199
Country: China
Website: https://www.sino-stainless-steel.com/

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