China's Steel Market Products Supply And Demand Structure Studies

Since the beginning of the21st century, China’s steel market is gradually revealed many problems, one of the more prominent problems include the imbalance between supply and demand of products, inadequate supply of products, poor product quality, low value-added products. To this end, the government has issued the industrial policy in order to improve and optimize the product structure of the steel market. In contrast to historical data, the implementation of the relevant industrial policies does play some role, supply and demand imbalance in the steel market is gradually improved. For now, however, the policy is mainly revolves around how to curb products in excessive supply, for high tech products in short supply, products of poor quality and low added value products remain to be the issue of relevant policies, the situation of the products in excessive supply has been eased, but the situation is still grim. Problems of product supply and demand structure of the steel market are not resolved, the steel industry downturn in the profitability of the status quo would be difficult to change, China’s steel industry could hardly be emerging as the world steel powers. Therefore, we need to think about the current status of the steel industry seriously, the causes of structural problems of supply and demand in the product market, so as to provide favorable conditions for a more rational and effective development and implementation of the steel industry policy, and also help China’s steel industry gradually achieve the goal of getting strong.Firstly, the thesis analyze the current state of product supply and demand structure of China’s steel market, according to the results of the analysis, the main problems in the product supply and demand structure of China’s steel market are given. This thesis bases the theory of microeconomics and industrial economics, starting from the perspective of the supply and demand, in theory we analyze the reasons of structural problems in the supply and demand in the steel market, which is the focus of this thesis. The supply side, starting from the perspective of China’s iron and steel industry technical level of equipment and technical innovation capability, by the use of the Yearbook of statistical analysis, correlation analysis and linear regression analysis, combined with the theory of technological innovation, the reasons of high tech products in short supply and export products with low added value were analyzed. The demand side, starting from the perspective of the imbalance between supply and demand caused by China’s steel demand continuous rapid growth, combined with the theory of incomplete information and asymmetric information, based on the characteristics of China’s steel industry, and China’s rigid demand for steel, the reasons for the problem of products in excessive supply were analyzed. At the end of the thesis, the suggestions to improve the supply and demand structure of China’s steel market were given.