Chinas steel pipe market will see improved fortunes in
2014 amid steady economic growth and increased demand,
according to Zhong Xidi, secretary general of the China Steel
"Beijing is aiming for
stable economic growth, and this will ensure steady development
in downstream pipe consumers, boosting demand for steel pipes,"
Zhong told delegates at a recent conference in Shanghai.
He pointed to a
forecast by the China Metallurgical Industry Planning and
Research Institute that the countrys steel consumption
could reach 715 million tonnes in 2014, up 3.2 percent year on
year, with major pipe usersincluding the auto
sectorseeing up to 8-percent annual growth.
There also could be a
small expansion in overseas trade, given the relatively low
Chinese pipe prices, Zhong said.
doesnt mean that the market will see a fundamental change
in the short term, as the pipe sector, like Chinas steel
industry in general, is still oversubscribed, he warned.
utilization rate of steel pipes, especially seamless pipes, is
below reasonable levels, which signals severe overcapacity,"
pipe capacity was more than 42 million tonnes in 2012 with a
utilization rate of only 67.14 percent, far below the
75-percent bottom line.
The countrys overall steel pipe capacity has exceeded
100 million tonnes as of late December. Production reached
75.95 million tonnes in 2012 and is estimated to hit 80 million
tonnes this year, according to CSPA figures.
A version of this
article was first published by AMM sister publication Steel