Expected to fully unleash the elasticity of steel mill profits in 2024 driven by dual positive factors

Hit：142025-01-07 14:36:50　

According to a research report by CITIC Securities, the possibility of a significant decrease in crude steel consumption in China in the future is relatively small. This is because on the one hand, China is still in the process of urbanization and industrialization, requiring a large amount of crude steel; On the other hand, with the expansion of application scenarios, the demand for steel as a basic material still has potential. The promotion of prefabricated steel structures, the upgrading and expansion of the manufacturing industry, and the rapid development of the new energy sector have all supported China's steel consumption to maintain a peak level for a long time. In the short term, 2024 will be a year of strong fiscal efficiency release. One trillion yuan of special treasury bond and special refinancing debt will effectively alleviate the capital problem and no longer limit the physical demand for infrastructure. It is expected that in 2024, the profits of steel mills will be driven by the dual benefits of improved demand and cost reduction, which is expected to fully release elasticity.