In recent years, there has been a significant increase in production capacity and production lines for galvanized sheet and coil production enterprises. In addition to their own production of ordinary materials, state-owned steel mills are also extending to end high value-added products such as variety steel, zinc aluminum magnesium, and silicon steel. Private production enterprises mainly add new products such as cold rolled, galvanized, and color coated sheet and coil, and mainly produce threads, hot coils (4027, 5.00, 0.12%) in the early stage, There are fewer cases of simply adding short process production lines, after all, at present, the survival space of short process production enterprises is becoming increasingly narrow. If there are competitive products, there may still be some profit points, and the production of ordinary material varieties may only be barely maintained. It is difficult to reproduce the high profits of the past, and it is not easy to "survive".

For the later development trend, the author believes that the elimination of outdated production capacity, including some joint ventures gradually withdrawing from the Chinese market, and their product competitiveness is gradually weakening. In addition, the rising costs of logistics, transportation, raw materials, and other costs, as well as the continuous emergence of the domestic epidemic, have a serious impact on them. The living space is constantly compressed, and the production capacity of localized enterprises is gradually expanding, Most of the new production capacity is still mainly increased by the billets, rolling mills, and blast furnace factories in the North China region. Therefore, the increase in supply in the North has also led to low prices in the South region. This year's weak demand situation has been verified, and the resources in the North are expanding to the South while market demand is not ideal. Price competition has kept the South China market in the "depression" of the mainstream market. Therefore, in the past, production in the North The trend of consumption in the south may change. Currently, steel mills prioritize profitability and invest in whichever market is profitable, including the production of steel mill varieties. This is not only for pursuing high production but also to ensure profit margins.