The tight energy supply and sharp rise in prices in Europe and other countries will impact their steel production and provide room for demand for China's steel and steel-consuming products. For some time, due to geopolitical influences such as the Russian-Ukrainian war, energy supply in some countries in Europe and Asia has been tight, and its prices have skyrocketed. For example, the current price of electricity in France is 5 times that of last year, and the price of natural gas is 10 times that of last year. Similar situations exist in Germany, Japan, South Korea and other countries. It is expected that after the winter, this situation will be more severe. If Russia completely "cuts off" the EU, the production of high-energy-consuming metals and steel-consuming products in its region will suffer a great impact, or prices will be raised due to cost pressures, which will also increase the demand for Chinese steel and steel-consuming products. space is required. Some analysts believe that the European energy crisis is evolving into an industrial crisis and a steel production crisis. According to the Confederation of German Industry, the additional energy costs in Germany this year amounted to more than 10 billion euros, equivalent to a quarter of the average annual sales of the German steel industry. The chairman of the Confederation of German Industry said that this would have a major impact on the competitiveness of German steel products, which would be crowded out by imported goods. Some companies are already suspending production, waiting for a drop in energy prices.