First, the release of steel production capacity remained at a high level, and the balance of supply and demand in the market was under pressure. In June, the national crude steel output was 2,917,700 tons, a record high. Although steel demand has continued to grow, steel production capacity has remained at a high level, putting greater pressure on the balance of supply and demand in the later period. On the basis of analyzing market demand, iron and steel enterprises should rationally arrange production and consciously maintain the results of production capacity.

Second, the price increase of imported iron ore far exceeds the price of steel, which has a great impact on the production and operation of steel enterprises. As of July 15, the CIOPI (China Iron Ore Price Index) imported iron ore price rose to 116.88 US dollars / ton, up 5.50% from the end of June, up 69.32% from the beginning of this year. In the same period, China's steel price index rose by only 0.36% from the end of June, up by 2.54% from the beginning of this year. The price increase of imported iron ore far exceeds the increase of steel prices, which has a great impact on the production and operation of steel enterprises.

Third, steel imports and exports fell year-on-year, and international market demand decreased. The global economic growth slowed down, coupled with the intensification of international trade protection and the escalating trade friction between China and the United States. In the first half of the year, the country exported 34.4 million tons of steel, down 2.6% year-on-year; imported steel 5.82 million tons, down 12.7% year-on-year. Iron and steel enterprises should carefully analyze the needs of the international market, improve product quality, and maintain the competitiveness of export products.