The China Iron and Steel Association (Cisa), in a press conference held on April 22, forecasts a further drop in steel exports for China in the second quarter of 2020 (April-Jun), because of the COVID-19 pandemic severely affecting all countries that are major importers of China’s steel.
Cisa based the forecast on China’s Q1 (Jan-March) export numbers, which it said dropped by 16pc to 14.3mn mt, as compared to Q1 the previous year; and the fact that the spread of COVID-19 is far from resolved across the world. Cisa pegged profit for the Chinese steel industry in Q1 as dropping by 50.8pc over Q1 the previous year.
The association further stated that domestic demand will gradually increase in the second quarter, as construction and infrastructure projects, which account for 55pc of total consumption, are expected to pick up. Cisa cited early March steel inventory at 21.41mn mt.