China's steel sector has been hit hard by the new coronavirus outbreak, with production slowing in the first quarter of this year and prices falling, but analysts expect a recovery in the second quarter as demand rebounds.
Rolled steel production in the first quarter was 267 million tons, down 1.6 percent from the same period last year, down 10.8 percent from the same period last year. This is evidenced by data from the Ministry of Industry and Information Technology (MIIT).
Steel prices also fell markedly, with the steel price index falling 5.7 percent year on year in the first quarter.
Under the impact of COVID-19, large steel mills were hit by more than 5 percent in revenue in the first quarter and profits more than halved, according to MIIT.
Steel demand is expected to rebound in the second quarter, analysts predict, as companies resume production and the country raises investment in infrastructure.
Most of the steel companies tracked by the China Metallurgy Association have resumed production amid broader reopening in the Chinese economy, with 178 of the 191 plants back to work as of April 19.
China's steel sector slows growth amid coronavirus outbreak
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