Dagong International Issues Outlook of Credit Risk in Steel Industry in 2019

Thanks to the increased efforts of the state in the field of infrastructure and the rapid development of construction machinery industry, the steel demand is expected to increase steadily in 2019.

Regularization and strict environmental protection policy will be the key means to adjust the industrial structure in the future. The optimization of industrial structure is conducive to the improvement of productivity utilization and the withdrawal of backward productivity. It is expected that the steel supply will remain stable.

Under the combined influence of supply and demand, steel price will increase slightly in the future, and there will be no sharp decline. It is expected that industry income will rise slightly in 2019. Taking into account the increase of environmental investment and the trend of raw material prices, the overall profitability level of the steel industry is expected to increase but the growth rate will narrow, and the overall credit level of the steel industry will remain stable.