Steel demand in China to grow by 10 million tonnes in 2020

The latest report from the China Iron and Steel Industry Association (CISA) predicts a 2% YoY increase in steel demand in 2020 to 890 million tonnes, up from 875 million tonnes in 2019.

New property growth will slow in 2020, but infrastructure construction will accelerate and offset the pressure on steel demand from weaker construction.

CISA expects steel demand growth in the mechanical engineering sector to be stable, driven by robust growth in demand from the petrochemical and petrochemical industries. construction industry.

However, CISA said that demand for steel from vehicles, ships and containers will decrease in 2020.

The association predicts that production and sales of passenger cars in China will decline by 2% in 2020.

The CISA forecast contradicts a report by the China Metals Planning and Research Institute in December that steel demand in China is expected to decline slightly to 874 million tonnes in 2020. The institute said: “Steel demand in the construction industry is forecast to decline 0.6 percent year on year to 475 million tonnes. The engineering industry is likely to see its demand remain largely stable next year at 142 million tonnes. In the automotive sector, the largest decline in demand is expected to decline by 3.6 percent over the same period last year. The demand from the sector is likely to reach 48.2 million tons. ”