The steel market will usher in a staged rebound in 2023

Benefiting from the solid foundation laid by the industrial restructuring, transformation and upgrading that has been continuously promoted over the years, the development of the steel industry has withstood the full impact of the epidemic in 2022, overcome the unexpected downward pressure on the economic operation, and presented the characteristics of strong resilience, sufficient vitality and a long-term trend of improvement.

In 2023, the annual average price of steel may fall further, but the decline will narrow. Downstream consumption of iron and steel still has growth potential, but the supply elasticity may be greater than the demand elasticity, and the low-profit status of production enterprises continues. In 2023, we should pay close attention to the policy side, especially the release node of policies related to real estate and steel production. The probability of administrative production reduction is small, but the environmental protection production limit will still exist. The central government has a firm attitude towards stabilizing the economy. There may be more than expected policy releases, and steel prices may also run more than expected.