China's mold steel industry is facing challenges

In recent years, the contradictions between the mold and steel industry in our country have been outstanding and the situation is severe. Due to the slow recovery of the international economy and the fall in China's economic growth rate, the domestic mold steel industry continues to show a trend of weak market demand, low volatility in steel prices, high raw material prices, and declining economic efficiency. Although mold and steel companies take various measures to reduce costs and increase efficiency, the business situation facing them is still very grim. The high cost and low efficiency of the mold and steel industry are difficult to reverse in the short term.

It is reported that the main problems faced by the current mold industry and the iron and steel industry are: the contradiction between oversupply and demand, the high cost of enterprises, and the shortage of funds. Although as of now, the various policies introduced by the government have not yet brought substantial demand for steel products, the newly approved projects of the National Development and Reform Commission will have a long period of time from the preparation to the start of construction, and they will not bring about the consumption of steel in the short term. The bottom is already very clear. The transformation and upgrading of the mold steel industry is also step by step.