The impact of macroeconomic policies on the development of the steel industry

Since last year, China’s economic development has improved markedly. With the development of the economy, the level of social consumption demand has also increased, which has changed the original consumption structure. The change in consumption structure requires the adjustment of industrial structure, and the adjustment of industrial structure has driven The adjustment of the investment structure has led to the rapid development of fixed asset investment, which has led to an increase in steel consumption. Steel prices have been climbing since the end of 2002 to mid-April 2004. Many people think that investing in the steel industry is profitable. Therefore, a large amount of capital is invested in the steel industry, resulting in tight supply of iron ore. Repeated construction is also very serious, causing great waste, not only wasting resources, but also polluting the environment. Continue to develop. As early as 2003, the relevant state departments realized that there was a problem in the process of economic development. At the end of 2003, they called for restrictions on investment in steel, electrolytic aluminum and cement industries. However, due to inconsistent understanding, they entered fixed assets investment since 2004. The speed has reached new heights and steel investment has expanded again. The Party Central Committee and the State Council immediately adopted relevant measures and relevant departments to closely cooperate with each other to implement macroeconomic regulation and control, so that the growth rate of fixed assets is controlled. At the same time, steel prices have also begun to fall sharply since mid-April. . However, we should realize that the impact of macroeconomic regulation and control on the steel industry is short-term rather than long-term. The final demand for the market driven by the upgrading of consumption structure is very strong, driving production and investment to follow quickly, and the entire economy will enter a new round. During the growth period, this is the most reliable pillar of the current and rapid economic growth. Driven by the overall economic development, the steel industry will continue to develop rapidly. In the first half of this year, China's steel market continued to heat up, and consumer demand and resource supply were very strong, reaching 150 million tons respectively, both of which increased by more than 20% over the same period last year. On May 10, the National Development and Reform Commission stated that “the initial effect of the obvious macroeconomic regulation and control of steel price decline” is the current indication that “the macro-control effect is very obvious and obvious”. It can be seen that macroeconomic regulation and control has achieved results, and it is unlikely that more stringent measures will be introduced in the future.

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