The prospects of China’s steel industry depend entirely on the official’s words. As

the steel industry holds the lifeblood of the national economy and accounts for a large proportion of GDP. The country will certainly not let this industry go into depression. The current consolidation of the steel industry seems to have begun, which is a good direction. China's steel production capacity is severely oversupplied. With exports blocked, China can only increase investment in infrastructure to boost domestic demand. Otherwise, steel prices will plummet and the economy will suffer heavy losses. On the other hand, steel mills will gradually reduce the production capacity of general materials and gradually develop towards high-quality and high-quality materials. In this way, a balanced production capacity can be achieved and healthy development can be achieved. The steel industry must join forces to integrate resources and eliminate backward production capacity. The listing of steel futures is also a form of resource integration. I personally believe that the national leaders will not make fun of the national economy. China Steel will increase the integration of production capacity, eliminate backward production capacity, develop high-quality steel products, and integrate with developed countries. In the future, as the information of steel mills gradually becomes transparent, the proportion of steel supplied directly by steel mills will also increase; while the intermediate traders will be reduced due to the gradual compression of profits, and will gradually develop in the direction of processing and logistics distribution.

Of course, this is a long process. Domestic steel demand will continue to increase in the future, and it will take a long time for production capacity, domestic demand, and external demand to reach a balance.

This is my humble opinion.