The impact of the epidemic on the steel industry is concentrated in six aspect:

The First, transportation is limited, the supply of raw and auxiliary materials is tight, and it is difficult for products to be shipped out of the warehouse. Especially in automobile transportation, due to the inability to supply the raw and auxiliary materials that rely on automobile transportation, some enterprises have encountered emergency situation of raw and auxiliary materials inventory, which has caused great difficulties in production organization, forward travel, and safety. Some logistics nodes such as ports, docks, and warehousing have also encountered problems such as restricted operations, insufficient personnel and anti-epidemic materials, which have seriously affected the normal transportation of steel products and raw fuels.

The Second, affected by the epidemic, many provinces and cities across the country announced the postponement of the resumption of work. Major steel-using industries such as construction, machinery, automobiles, shipbuilding, home appliances and other industries have been postponed, resulting in a significant decline in downstream steel demand in the first quarter.

The Third, increase in steel inventory. Due to factors such as declining terminal demand and blocked transportation due to the superimposition of the epidemic during the Spring Festival holiday, steel mills and social steel inventories after the Spring Festival have increased significantly higher than in the past.

The Fourth, exports may be affected. Judging from the situation reported by the enterprises, the export orders in March were organized and completed before the Spring Festival, but there is uncertainty as to whether they can all be shipped smoothly.

The Fifth, the price of steel has fallen and the price of iron ore has risen. The decrease in downstream demand and the increase in steel stocks caused the price of steel to fall.

The Sixth, iron and steel enterprises implement production reduction measures. Affected by the epidemic, steel mills have stopped production and overhauls to varying degrees, and the number is increasing day by day.