What are the possible effects of excessive export of CCS grade D steel

The excessive export of CCS grade D steel will lead to the shortage of domestic resource supply. Since the beginning of this year, domestic steel demand is strong, and the apparent consumption of crude steel in the first four months has increased by 15.2% year on year. Although the domestic iron and steel enterprises are actively increasing production, they have only achieved a fragile balance between supply and demand, and even some varieties are in short supply to some extent. In this context, if the excessive export of steel will break its fragile balance and lead to the shortage of domestic resource supply.

Excessive export of CCS grade D steel will push up the price of domestic market. The existence of domestic supply gap is bound to strengthen the cost of smelting and logistics, and promote the corresponding rise of domestic steel prices. If the situation of excessive export of steel can not be reversed, the price of steel is bound to move closer to a higher level in the international market and reach a new high. As one of the most important basic raw materials, the price of steel will continue to rise, which will inevitably lead to the price increase requirements of downstream products, thus raising the overall price level.

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