The epidemic has an important impact on the machinery industry and its steel consumption

From the perspective of China steel demand, the epidemic situation has an important impact on the downstream steel industry and its steel consumption. The short-term impact of the machinery industry is large, and it will decline slightly throughout the year.


The overall resumption of work of machinery manufacturing enterprises has been postponed, and the short-term output of each product has dropped significantly, and steel consumption in the first quarter will be greatly affected. According to the National Bureau of Statistics, from January to February 2020, important machinery and equipment with large output declines include small tractors, medium-sized tractors, and metal cutting machine tools, which were down 48.4%, 44.1%, and 44.6% year-on-year, which were close to the year-on-year; The smallest decrease was in cement special equipment, which fell by 10% year-on-year. In the medium and long term, with the gradual control of the epidemic, the progress of resuming production and reaching production is accelerating, and the peak season of the machinery industry will be delayed. At the same time, the implementation of a series of policies and measures such as the expansion of terminal consumption, stabilization of manufacturing investment, and improvement of industrial basic capabilities will promote the steady growth and industrial upgrading of the industry. Overall, the impact of the epidemic on the year is relatively limited. It is expected that the steel industry's steel consumption in 2020 will show a slight decline.

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