During October 27-29, 2023, the SteelHome China Steel Industry Summit for 2024 Market was held in Nanjing. This event was organized by SteelHome and proudly co-sponsored by Handan Zhengda Pipe Group and Ouyeel.

During this conference, seven specialized forums were conducted, including 'Innovation in Steel Supply Chain Models,' 'SteelHome Autumn Report 2023,' 'Industrial Financialization and Risk Management,' 'SteelHome Spot and Futures Trading Practical Experience Sharing,' 'The 26th Joint Meeting of Market Information for Steel Enterprises and the 9th Steel Ecosystem Market Information Conference,' 'Research on the Current State and Structural Issues in the Raw Materials Market,' and 'Steel Products: Low Carbon Environmental Protection, Structural Adjustment, and Innovation in Models.

Over 900 participants from more than 700 organizations, including over 120 domestic and international steel manufacturers, as well as more than 80 raw material companies, joined the event. Additionally, numerous industry stakeholders, institutions, and media outlets were represented.

On the morning of October 28, during the keynote session, Mr. Wu Wenzhang, the Founder and Chairman of SteelHome, delivered an address and presented a keynote speech titled Basic Perspective on the Steel Market for 2024.

Welcome Address by Mr. Wu Wenzhang, Founder and Chairman of SteelHome

Key Points of the Speech

The steel industry is facing a challenging phase, characterized by reviving from a state of fatigue and the need for strategic adaptation. It necessitates profound reflection and strategic transformation, rather than adhering to old strategies. The steel industry finds itself in a situation akin to a "prisoner's dilemma," which might appear unchanged. Resolving this predicament does not solely rely on industry associations or government policies but primarily on enterprises adjusting their product structures. The steel industry is currently under pressure to adapt, and as the saying goes, "necessity is the mother of invention.

The steel industry's current situation is similar to that of the end of 2015, with the industry at a low point. Comparing the current low point to the end of 2015, iron ore has risen by 600 yuan per ton, coke has increased by 1,500 yuan per ton, resulting in a combined cost increase of 1,800 yuan per ton. Steel prices have also risen by about 1,800 yuan per ton. Presently, the steel industry is at a low point, mirroring the conditions at the end of 2015.

Conclusion

The domestic steel market is expected to witness price fluctuations and a gradual recovery within the current year and the first quarter of the next year. Throughout the year, steel prices are expected to hover below the industry's average cost line, with common steel products mostly operating at a loss unless there is effective product structure adjustment. The annual average price in 2024 is expected to remain relatively consistent with this year. The supply and demand situation in the iron ore and coking coal markets is relatively stable, and industry costs are expected to remain on par with or slightly decrease from this year.

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