China's steel sector was hit hard by the outbreak of the new Corona virus, as production slowed and prices fell in the first quarter of this year, but analysts expect it to recover in the second quarter as demand recovers.
Data issued by the Ministry of Industry and Information Technology showed that galvanized steel production reached 267 million tons in the first quarter, a decrease of 1.6 percent year-on-year, compared to an increase of 10.8 percent during the same period last year.
Steel prices also saw a notable decline, with the galvanized steel price index falling by 5.7 percent year-on-year in the first quarter.
Due to the impact of Covid-19, major steelmakers suffered a revenue loss of more than 5 percent in the first quarter, while profits fell by more than half, according to the ministry
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Analysts said steel demand is expected to rebound again in the second quarter as companies resume production and the country increases investment in infrastructure.
The majority of steelmakers tracked by the China Iron and Steel Association have resumed production amid a broader reopening in the Chinese economy, with 178 out of 191 companies back on track as of April 19.