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Will a sharp fall in the US stock market trigger a crisis in the steel industry?

Time : 2021-04-26 Hits : 12

The U.S. stock market crash is more due to the short-term effect caused by the U.S. public panic. At present, the industrial structure and competition situation have not undergone fundamental changes, and the medium and long-term impact on the steel industry is still weak. However, if the unemployment rate continues to rise and consumption remains low for a long time, it may also have a deep and long-term impact on the U.S. steel industry.
  Every time there is a crisis, the steel industry is in a "disaster area". Recently, the U.S. stock market broke down twice and fell sharply. Although the US stock market is affected by COVID-19, China's epidemic prevention also verifies the controllability of the epidemic. But if the US stock market crash will trigger an economic crisis, will it affect the steel industry?
  Steel industry is the basic industry of national economy. Once the economic crisis occurs, the rising unemployment rate and the decline of purchasing power will lead to the shrinkage of non rigid consumer goods, such as the improvement of automobile and housing demand. The shrinkage of steel industry demand will soon transmit to the steel production end. The large-scale and continuous characteristics of steel production are easy to cause problems such as overstock and poor turnover, which will bring great impact to steel production enterprises. But the impact of each crisis on the steel industry is not limited to this superficial reason.
  In the past, the steel industry was deeply affected because of the economic crisis and industrial structure, competitiveness and demand matching. The U.S. stock market crash is more due to the short-term effect caused by the U.S. public panic. At present, the industrial structure and competition situation have not undergone fundamental changes, and the medium and long-term impact on the steel industry is still weak. However, if the unemployment rate continues to rise and consumption remains low for a long time, it may also have a deep and long-term impact on the U.S. steel industry.