China steel rolling industry growth to slow down: report

Metal Recycling News  |  2012-01-23 05:01:27   |   By

China's steel rolling industry is expected to experience stable but comparatively lower growth from 2012 to 2016

BEIJING (Scrap Monster): China’s steel rolling industry is expected to experience stable but comparatively lower growth from 2012 to 2016, according to IBISWorld, America’s largest publisher of industry research.

Average annual revenue growth in the five years through 2016 is forecast to be 14.7% by the researcher.

In 2011, industry revenue increased by 20.9%. Due to the huge downstream demand from steel product manufacturers, domestic demand grew by 20.8%.

At the beginning of the Twelfth Five-Year plan, the Chinese Government issued policies to stimulate domestic development. According to the plan, the iron and steel industry is expected to further strengthen its competition through applying new technologies and new industry system.

Therefore, the industry is forecast to show a consistent increase in the next five years.

Although recent supply surplus problems appeared in the industry, long-term prospects for the industry are promising with continued urbanization in China and further expansion of infrastructure facilities.

IBISWorld expects the number of enterprises operating in the industry and total industry employment to further decrease in the future due to consolidation and improving production efficiency in the industry.