Under the influence of the volatility of global financialmarkets and the relentless plunging of crude materials such as crude oil, theinternational steel market in 2018 finally ended in a weak position. As of thereporting period, the global steel benchmark price index of 113.8 pointsdecreased by 3.7% month-on-month (expanded by more), with a year-on-yeardecrease of 5.4% (expanded increase) and a year-on-year increase of 14.7%(increase in convergence). Among them: flat steel index was 107.4 points, down2.6% month-on-month (expanded expansion); long product index was 123.3 points,down 4.4% month-on-month (expanded expansion); Asia index was 113.3 points,down 5.5% month-on-month (expanded expansion). The China index in Asia was114.3 points, down 6.4% month-on-month (the decline was wide); the Americasindex was 140.9 points, down 0.7% month-on-month (same as before); the Europeanindex was 96.5 points, down 2.9% month-on-month (expanding expansion). It canbe seen from the index performance that the international steel market, whichhas been rising for three consecutive years, has not only seen the first riseand then the decline, but also ended with a general decline, which has directlystunned the industry! But does this “declare” that the global steel market isentering a cyclical adjustment, or a “bully bear conversion” in the traditionalsense? It may take time to consider. However, according to the operationalsituation and the fundamental situation, the international steel market in thefirst two months of the year may continue to adjust its momentum until the endof the Chinese New Year, or there may be a remedial trend.

From January to November, global crude steel output increasedby 4.7% year-on-year. According to the International Steel Association, inNovember 2018, the global crude steel output of 64 countries included in theWorld Steel Association statistics was 148.6 million tons, up 5.8%year-on-year; from January to November, the global production of crude steelwas 1.647 billion tons, up 4.7% year-on-year; It is predicted that globalproduction of steel will reach 1.8 billion tons in 2018, a record high.