worldsteel SRO Foresees Notable Surge in Chinese Steel Demand

SEATTLE (Scrap Monster): The latest Short Range Outlook (SRO) report published by the World Steel Association (worldsteel) predicts moderate growth to Chinese steel demand in 2021. Further, it foresees growth to decelerate in 2022.

According to the steel trade body, the country’s economy quickly rebounded from the lockdown in late February last year. Unlike the rest of the world, the economic activity has not been impacted badly since then. The government announced various measures to accelerate existing projects, in addition to declaring a series of new infrastructure projects aimed at boosting the economic growth. As a result of these measures, the Chinese economy grew by 2.3% during the previous year.

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The robust activity in the construction and machinery sectors led to 9.1% surge in apparent steel use in 2020.

The stimulus measures introduced in 2020 is likely to largely remain in place. As a result, most steel-using sectors will show moderate growth during the current year. The country’s steel demand is expected to grow by 3.0% in 2021. Furthermore, the steel demand growth is expected to decelerate to 1.0% in 2022, mainly driven by new US administration's trade policy and stricter environmental regulations.