Reduced supply will lead to higher steel prices
In the new year, China will continue its policy of tightening steel production. In January 2022, 50 steel mills announced a plan to curtail production to address carbon neutralization, energy savings and emission reductions while meeting demand for the blue sky of the Beijing Winter Olympics. Steel production capacity decreased by 10 million tons. Experts note that China will still control energy consumption in 2022. Crude steel production is expected to fall compared to 2021. Major steelmakers in Asia and China are also cutting production. The reduction in the supply of steel production and the increase in sales have a positive effect on steel prices.