Chinese Steel Demand Growth Projected at 2%

SEATTLE (Scrap Monster):  The estimates by China Iron and Steel Association (CISA) suggest 2% surge in the country’s finished steel consumption in 2020. The yearly consumption is projected to rise to 889.8 million tonnes (Mt), mainly on account of increased demand from construction sector. The rise in steel consumption is lesser when compared with 2019, when the total steel consumption had surged higher by 6% year-on-year to total 875.3 Mt.

The construction sector is likely to be the key driver of steel demand growth during the current year. The sector consumption will increase by 2% to 498 Mt in 2020. It must be noted that the Chinese construction sector steel consumption had surged higher by 8% in 2019 to total 486 Mt.

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The projected rise in steel demand from infrastructure construction is likely to offset the weaker demand from property construction sector. CISA foresees healthy steel demand growth from machinery sector. On the contrary, steel demand from vehicle, ship and container manufacturing is likely to slow down in 2020.

Earlier, the China Metallurgical Industry Planning and Research Institute had predicted marginal decline in Chinese steel demand in 2020. As per their estimates, the annual steel demand is projected at 874 Mt during this year.