MTI: Chinese Steel Demand Projected to Decline in 2024

SEATTLE (Scrap Monster): According to the China Metallurgical Industry Planning and Research Institute (MPI), the country’s steel demand during the current year is projected to decline by 3.3% from 2022. The demand is expected to contract further by 1.7% in 2024. The reduced demand forecasts are mainly on account of notable decline in construction activity in the country.

As per research, the country’s steel consumption is likely to total 890 million metric tons in 2023, thus resulting in a significant surplus. The overall steel demand is forecast to drop further to 875 million metric tons next year.

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The demand has been badly impacted by debt-driven property sector. The demand for construction steel is expected to record significant decline by 4.8% this year to total 506 million tons. The MPI research foresees 4% dip in construction steel demand in 2024. Meantime, the steel demand from infrastructure sector will partly offset the demand fall from property sector.

The country’s crude steel production totalled 952.14 million tons of crude steel in the first 11 months of 2023, marginally higher by 1.5% over the corresponding eleven-month period in 2022. The steel exports by the country have hit 82.66 million tons till date this year, the highest level since 2016.