What is the reason for the large global steel supply gap

At present, overseas countries are seriously affected by the epidemic, resulting in a global steel supply gap of about 30-40 million tons. In the case of production reduction in some regions, China's steel export advantages begin to reappear.

On the one hand, the pace of economic recovery in different countries is different, resulting in mismatches. The downstream industries are gradually recovering, but the recovery speed of upstream industries is slow. For example, the steel imports from Canada, Brazil and Mexico are mainly from the United States. However, these countries are affected by the epidemic situation, the exports are reduced, and the recovery progress of American steel plants is low because they can not recruit workers; On the other hand, major developed countries are implementing carbon emission reduction, such as Germany. In order to achieve carbon neutrality in 2050, the annual carbon dioxide emissions of domestic blast furnaces and steel plants are about 58 million tons, accounting for more than 30% of industrial emissions. In order to promote the transformation of steel plants, Germany will raise at least 5 billion euros (about 38.9 billion yuan) for the transformation subsidies of steel industry from 2022 to 2024.