Decrease in steel supply to increase steel prices
31 Jan 2022 16:36 reported by Lena Yang
In the new year, China will continue the policy to tighten steel production. In January 2022, 50 steel mills announced the plan to limit production in consideration of carbon neutralization, energy conservation, and emissions reduction while satisfying the demand for the "blue sky" of the Beijing Winter Olympics. Steel production capacity has been reduced by 10 million tons.
Experts pointed out China is still controlling energy consumption in 2022. Crude steel production was expected to fall compared to 2021. Major steel producers in Asia and China are also cutting fabrication. The supply cut of steel production and increase of sales are beneficial to steel prices.
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