The superimposed resonance of the new coronary pneumonia epidemic and oil supply-side risks has caused global commodity prices to plummet, and corporate performance in the first quarter of this year has declined significantly. However, we also see that the price of black commodities represented by rebar is still relatively strong compared to other commodities despite the pressure of high inventory. The confidence and determination of our country to stabilize investment in recent times can be regarded as a core logic behind this.

From the perspective of policy space, since the second half of 2018, China has begun to increase infrastructure investment through measures such as reducing the capital ratio of key projects and issuing special debts in advance. After the overall situation of the new coronary pneumonia epidemic has been brought under control, China has quickly restarted its economy, accelerated the resumption of production and resumed production, and the stock has been quickly digested.

Generally speaking, whether in terms of investment in infrastructure projects, or monetary and fiscal policies, we have always maintained policy continuity, and continue to increase implementation efforts and speed up implementation, which will form a strong support for steel demand, inventory is expected to maintain rapid digestion, steel prices are expected to continue to repair upward, and industry profitability will also be improved.