After over 42 years of “opening up policy” execution since 1978, China has reignited its economic engine, trying to set up a new economic development model in Xiong’an New Area in North China’s Hebei province, just like the Shenzhen Special Economic Zone back in 1980, and the difference is that Xiong’an is not about trade, it is about eco-friendly and high-end industries and well-designed landscape with digitalization and artificial intelligence being the core elements.
After the robust performance in April and May, China’s domestic steel demand may step onto a down slope starting June, and 2020 may end with a 4% on-year decline in total steel consumption, while the supply glut will be even more outstanding against the retreat in consumption in H2, Xu Xiangchun, Mysteel’s senior steel analyst, warned the market at the 3rd Bohai Economic Rim Steel Conference 2020 on June 3, the first large-scale virtual conference that Mysteel held with over 1,000 dial-ins and over 50,000 views.
China’s “two sessions” in 2020 are of even greater significance than the previous years, as the top two political sessions to start on May 21 and May 22, will not only finalize the country’s series of development tasks including economic growth for this year but will also pan out the 14th five-year (2021-2025) planning period strategy, and many industries including steel are expecting more stimulus measures from Beijing to combat against the impact of the COVID-19.
China’s 81 property enterprises have filed for bankruptcy since the start of 2020, according to the official data from the People’s Court Announcement, as their promotional efforts including discounts have been futile in selling off their housing stocks so far when people dare not even step out of the door most of the time since the nationwide outbreak of Novel Coronavirus Pneumonia (NCP) in latest January.
Earlier than usual, China’s Ministry of Finance (MOF) disclosed on November 27 to grant China's local authorities a total of Yuan 1 trillion ($142.4 billion) quota for the issuance of government bonds for specific uses, which is part of efforts to stabilize the national economy in 2020, clarifying that this is just “part of the whole parcel”.
China’s Ministry of Ecology and Environment (MEE) released two notices on its website on November 12 regarding winter restrictions in the Fenwei Plains and the Yangtze River Delta area over October 1-March 31 2020, with steel, coal and coke industries mentioned, though the focus has been on PM2.5 reduction and waste emission than any detailed and specific instructions in tackling coking, blast furnaces, and sintering.
After a six-year hiatus, China’s National Development and Reform Committee (NDRC), the country’s top economic planning body, has released its latest industrial restructuring guidelines, effective on January 1 2020, to direct the development of all the key 48 economic sectors including new energy, coal, steel, nonferrous metals and mining. The version, posted on the Committee’s
China’s crude steel production found another burst of energy during April and May – after leaping by nearly 10% over January-March – to refresh new output highs and in turn, fuel market concerns about oversupply, according to a report in China Metallurgical News on June 19, according to a report in China Metallurgical News on June 19.
特点：搬迁 - 福音还是祸害了中国钢厂？2019年4月29日
China’s decision to reduce the value-added tax on manufacturers to 13% on April 1 from the prevalent 16% may not definitely lead to lower prices of ferrous products including iron ore and steel or downstream products such as auto, market sources said on Monday and Tuesday.
China’s steel industry is in general excited at the news on Beijing’s mulling cutting the value-added tax (VAT) on the domestic manufacturers and small and micro enterprises to 13% from the present 16%, possibly in 2019, expecting the measure to reduce their production costs, helping them enhance their competitiveness especially in the global market, according to market sources on March 5 and 6.
Changzhou city in East China’s Jiangsu province is among the latest to join Beijing’s drive to improve air quality, with the city explicitly instructing 48 local steel mills to continue to cut their daily steel output beginning July 25 and lasting possibly until year’s end, an official from Changzhou City Environmental Protection Bureau confirmed on July 30.