Reducing production capacity is the only way for the steel industry to overcome difficulties

At the 2025 China Steel Market Outlook and”My Steel”Annual Meeting on December 7th,Zhu Junhong,Chairman of Shanghai Steel Union E-commerce Co.,Ltd.,gave relevant suggestions on the development of the steel industry.

Zhu Junhong stated that 2024 will be a very difficult year for the steel industry.Zhu Junhong stated that currently,China’s ironmaking capacity has reached 1.014 billion tons,and the electric furnace steelmaking capacity has reached 205 million tons.It is expected that the apparent consumption of crude steel for the whole year of 2024 will be about 900 million tons,and the overall demand for steel consumption has entered a downward trend.

From the development history of the global steel industry,in the 1970s,both Europe and Japan experienced severe overcapacity,and steel companies generally suffered losses,facing enormous survival challenges.In this context,these countries and regions have implemented a series of policies to reduce development,strictly limiting and reducing steel production capacity through administrative intervention,and implementing production control.