Li Xinchuang, president of the China Metallurgical Industry Planning and Research Institute, stated yesterday that China's actual steel consumption this year is expected to reach 693 million tons, with projections showing a rise to 715 million tons in 2014—an increase of 3.2% year-on-year. Despite this growth, overcapacity in the steel sector is expected to persist.
These remarks were made at the 2014 China Steel Demand Forecasting Results Conference hosted by the institute on the 6th. According to the institute’s analysis, the slowing growth of downstream industries such as machinery, home appliances, and containers has been the primary factor behind the reduced pace of steel consumption growth. Although China’s economy continues to face various positive factors and the internal and external economic environment is gradually improving, significant improvements remain elusive. As a result, steel demand is expected to grow modestly in 2014.
The forecast also highlights that among the eight key industries driving steel demand, the railway and automotive sectors are anticipated to see the highest increases in steel consumption next year—8.3% and 8.0%, respectively. The machinery and home appliance industries are projected to experience growth of 5.3% and 5.0%. Meanwhile, the construction, energy, and container industries are expected to see only slight increases. The shipbuilding industry, however, is likely to maintain steady demand, as it remains affected by the sluggish global shipping sector.
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