Accumulation of stocks for steel products in China due to COVID-2019
21 Feb 2020 16:27 reported by Juantxo Huang
As it’s well-known, the 2019-nCoV was paralyzing most economic activities in China, but not for the Chinese steel industries.
As per some experts’ analysis, the reason why the Chinese steel industries didn't stop the fabrication was because of their equipment. As most of them used a blast furnace to do it, this kind of facility couldn’t cease so easily as the electric arc furnace (EAF). Then, they have to keep producing 24 hours to not suffer a cost increase in their production.
On the other hand, due to the disease, many vessels couldn’t foresee the exact shipping date, hence some foreign importers have stopped purchasing from China.
This current situation provoked an accumulation of steel stocks to its highest level in these two years and also make the rebars’ price down to the lowest level from 2017.
Back to Steel News