China's crude steel consumption is expected to grow by 2.9 percent year-on-year this year, with an increase of 25 million tons, steel industry analysts said. In terms of sub-sectors, the growth rate of steel used for infrastructure construction will increase, while the growth rate of steel used for household appliances and machinery will gradually slow down.

On the macro level, analysts believe that the downward pressure on the global economy is increasing, the domestic economy is experiencing a slight decline, and the traditional economy, supported by investment growth, is declining. From the perspective of the downstream steel industry, real estate investment is still resilient in the second half of the year, while infrastructure investment is likely to pick up. Under the background of accelerating local debt issuance, it is expected to release in the third quarter. Manufacturing continues to run at a low speed and is expected to pick up at the bottom. Since the beginning of this year, automobile industry data performance is relatively poor, the second half of the year may improve the mechanism and policy to promote and stimulate consumption. Analysts said this year and next year, the steel industry to optimize the layout of the peak restructuring. This year, the environmental protection of steel production will also become the norm, the second half of the impact of environmental protection on production disturbance is greater, in addition, the environmental protection of steel emission standards refined, explicit. Growth in supply was slower in the second half than in the first, while exports were flat or slightly higher.

From the perspective of raw materials, the overall reform of coke supply side in the first half of the year was not as expected, and coke output increased significantly year-on-year. The reform of coke supply side in the second half of the year is expected to accelerate. According to statistics, last year's global iron ore output of 2.209 billion tons, this year's estimated output of about 2.119 billion tons, year-on-year decrease of about 9.8 million tons, a decrease of 0.4%, later with the gradual recovery of supply, iron ore supply increase in the second half of the year, supply and demand relationship gradually ease.