INDUSTRY NEWS
Impact Of Epidemic Situation On Major Foreign Steel-Producing Regions
The recent epidemic has spread rapidly around the world, with the exception of China, South Korea, Italy, Japan, Southeast Asia and other countries. According to statistics from World Steel Association, Japan's crude steel output in 2019 ranks third in the world (99.3 million tons), and South Korea ranks sixth (71.4 million tons). Southeast Asia is an emerging market for global steel production. Production conditions in several regions are implicated in the global economy.
As of now, the impact of the epidemic on the steel industry in Europe, South Korea, Japan, India, Southeast Asia and other countries is small, but it is generally reflected that if the epidemic is not well controlled, it may affect future production. By region: Japan is the third largest economy in the world, especially when the East Olympic Games is convened. The outbreak of the epidemic will exert greater pressure on its domestic economy and consumption. Although the South Korean side has limited impact, it has control of the epidemic It is more worried, and in addition, it is more pessimistic about the situation of steel exports; the weather in India and Southeast Asia is hot, the temperature is high, and the overall impact of the epidemic is less.
The specific research content is as follows:
Japanese enterprise A: The current production and operation are normal, but the current steel mills are generally profitable, and they are basically at the same level of profit and loss. Now Japan is beginning to worry about the impact of the epidemic on the Olympics. According to the current situation, the Olympic Games may be postponed or canceled, which will have a greater impact on the economy; even if it is held on time, the number of tourists will not meet the previous expectations.
Company B with which Japan and South Korea trade with each other: At present, Japanese and South Korean steel companies have little impact temporarily, and they do not think that large-scale impact will occur unless there is an uncontrollable epidemic situation.
Company C that has trade relations with Japan and South Korea: At present it seems that the impact is not great, but it is still necessary to track the development of the epidemic. There are two concerns in Japan and South Korea. One is that the export growth of Chinese domestic steel due to various reasons has not been digested in time, which will cause great pressure on Japanese and South Korean steel mills. If workers have a confirmed diagnosis, it will directly affect production. A case was reportedly confirmed the day before yesterday that caused the shutdown of their electric furnace. (Specific situation Mysteel is still being verified).
Malaysian company D: The normal operation of the blast furnace is only for profit reasons and the cost of raw materials is being reduced; the epidemic has no effect. The local temperature in Malay is high, and several parts of the infection have been cured. Affected by the epidemic in China, exports of Malay steel in February were lower than in January.
Indian Enterprise E: Currently not affected by the epidemic, production and export are in good condition. Affected by rising domestic demand in the coming months, exports may decline.
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