Due to the impact of DE-capacity and environmental protection policy, steel market supply declined, which brings high profit. However, as a large-scale production of industrial products, the high profit model is difficult to long-term.

1, High profits, strength market supply.

The high profitability of the steel industry is formed by policy suppression. And as a large-scale production steel products, will return to normal profits with the industry itself adjustment. Regular manufacturers will continue to release capacity, iron and steel enterprises are working to increase production.

2, Capital flew into the steel industry, improved enterprise production

With the steel industry back to spring, industrial capital began to flow into the steel industry, so as to promote technological transformation and production capacity replacement, the future steel production will continue to grow. At present, the government is strictly forbidden to build new steel production capacity projects, but allow capacity replacement to eliminate inefficient equipment, the new project is more efficient, and some provinces have begun to support cross-regional capacity replacement.

In the future, the development of the steel industry and the following three aspects are closely related. First, the market, the future steel products market will have a substantial volatility, there may be reversed. Second, the industry, the downstream sales are more secure, each enterprise are working to improve production efficiency. Three is the government, the formation of a stable and sustainable policy environment is important for the industry.

I have to say, this is a chance for steel exporters of China. Prime Steel Pipe is not only a carbon steel pipe manufacturer of China, but also is a excellent steel pipe and fittings exporter, Prime absolutely will not miss this opportunity. Here, we provide the most comprehensive steel products for customers, such as carbon steel pipe, stainless steel pipe, steel pipe fittings and flange, structural steel section, etc.