The China Iron and Steel Association said in a recent report that in 2017, China's steel market demand is expected to remain stable, but as domestic and international market conditions become more complex, the steel industry remains in a stage of transformation and turnaround, the overall market will not change significantly, and steel prices are unlikely to rise sharply.

 In 2016, steel prices rose sharply, and the steel industry thereby reversed its deep losses and achieved profitability. In the first 11 months, the industry's total profit reached 33.15 billion yuan, compared with a loss of 52.9 billion yuan in the same period the previous year.

Ma Guoqiang, chairman of the China Iron and Steel Association, said that in the face of the 2017 market situation, the industry should be full of confidence but also clearly recognize that although the steel industry has turned losses into profits, it has only emerged from the trough and has not fully escaped difficulties. The entire industry is still operating at meager profit and still faces many difficulties and problems, so there is no room for blind optimism.
　　 The report holds that cutting overcapacity and eliminating outdated capacity are key to stable steel prices. In 2017, the steel industry will continue to advance capacity reduction, and outdated capacity such as induction furnace steel and medium-frequency furnace steel will gradually exit the market. However, overall, the oversupply situation in the domestic market will be difficult to fundamentally reverse in the short term.

 The report predicts that domestic steel production will remain at a high level in 2017, while steel exports will trend downward, so steel prices will be unlikely to sustain sharp gains.