Chinas steel output is expected to maintain 3- to
5-percent annual growth in the medium term thanks to steady
economic expansion, according to the China Iron and Steel
target of 7.5-percent annual growth in GDP (gross domestic
product) over the next couple of years, as well as the
countrys ongoing industrialization and urbanization,
demand for steel will continue to increase," Cisa vice chairman
Zhang Changfu said at an industry conference in Shenyang. "By
2020, Chinas apparent steel consumption could reach 730
million to 780 million tonnes, and output could reach 800
million to 850 million tonnes with steel exports included."
China produced 717
million tonnes of steel last year, while apparent consumption
was around 673 million tonnes.
Although there will be an increase in steel demand, Zhang
noted that overcapacity of certain products remains a serious
issue. "Among Chinas top 10 steel products, only
galvanized steel, rod and rebar see production capacity
utilization rates above 80 percent. Those for sections, medium
and heavy plate, and hot-rolled wide strip are below 70
percent, which indicate severe surpluses," he said.
A version of this article was first published by AMM sister
publication Steel First.