The steel industry needs a "phoenix nirvana" type of quenching

With the weakening of steel market demand, falling steel prices, and high raw material costs such as upstream iron ore, the three-party attack has allowed China's steel industry to shrink its profitability space. The more serious issue before the steel industry is the funding issue.

The current pattern of the steel industry proves that "big but not strong" cannot cope with market shocks.

Although we have the world's largest steel production capacity, the largest steel enterprise cluster in the world, and the world’s largest market, many key links in the steel industry chain are not in our hands.

Although the extensive industrial chain has a large volume, the whole system may have a weak side. In particular, driven by huge investments, the model of high input and low output will be unable to extricate itself once the market turns cold.

Right now, the loss of the steel industry is a relentless force on the steel mechanism and a reflection on the traditional development model.

However, the steel industry can only increase toughness and strength after such market hardening.