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There are three main factors restricting the development of the steel industry. First, domestic real estate regulation and control policies have not been relaxed in the short term, and real estate sales and investment growth rates have been declining; second, the European debt crisis continues to plague the global economic operation, and China's export growth will slow down significantly in 2012; third, the US economic recovery Slowly, the pulling effect on the new round of world economic growth is limited. It is expected that China's steel industry will still face greater demand pressure in 2012. The "reverse mechanism" formed by the market objectively requires the industry to improve its production efficiency, avoid homogeneous competition and implement mergers and reorganizations, in order to deal with the overall adverse environment. Shock. The growth rate of major downstream demand industries continued to slow down. In addition, with the vigorous implementation of the "Twelfth Five-Year Plan" and the acceleration of the process of urbanization and infrastructure construction, China's economic development structure has begun to transform, with the construction of a modern industrial system as a strategic focus.