From the production capacity point of view, from January to November 2018, the national crude steel output reached 857 million tons, an increase of 6.7%; the annual crude steel output in 2018 is expected to exceed 900 million tons; from January to November, the production of pig iron is 708 million tons, an increase of 2.4%; January to November steel output was 1.012 billion tons, a significant increase of 8.3%.

This problem can be viewed from three aspects: First, since 2018, most steel companies are in the positive profit range. Under the influence of profits, steel companies have adopted various means such as raising high-grade mines under limited production capacity. Into the furnace ratio, reduce overhaul, increase the proportion of scrap into the furnace and improve production efficiency; Second, after the complete elimination of “strip steel” in 2017, the new steel production is an effective supplement to this demand, and the statistical performance is The increase in steel production. Third, the release of new furnace steel output is also one of the main factors for the sharp increase in crude steel production.

In addition, China’s steel exports continued to decline in 2018, which is in line with the expectations at the beginning of the year. Specifically, from January to November 2018, China's cumulative export of steel products was 63.778 million tons, down 8.6% year-on-year. It is estimated that the annual export volume will not exceed 70 million tons. From January to November, China imported 12.16 million tons of steel, an increase of 0.5% year-on-year. It is estimated that the annual steel imports will be around 13 million tons, which is basically the same as 2017. The decline in exports, on the one hand, is affected by the price difference between domestic and foreign steel products, on the other hand, it is also inextricably linked to the intensification of global trade protectionism and the establishment of import barriers by various countries.