It is reported that China's domestic steel demand growth looks set to steam ahead in months ahead, a consensus achieved by market analysts at Mysteel Annual Conference held last weekend.

Mr Luo Bingsheng deputy director of China Iron & Steel Association noted that robust internal and external demand have boosted China's steel output in the first three quarters of this year while domestic demand would be the main driving force in the last quarter.

China's apparent crude steel consumption grows 30.8 million tonnes to 318 million tonnes in the first nine months, and domestic market takes up 56.78% of the country's crude steel increment. Mr Luo forecasts that domestic steel demand is poised to keep strong growth next year as GDP growth projected at 11%. Apparent crude steel consumption is expected to expand 12% next year.

Ms Tan Naifen vice director of China Association of the National Shipbuilding Industry said that China's shipbuilding industry is to consume 9.1 million tonnes of steel products this year, compared with 5.66 million tonnes the year before. She also estimates that steel consumption in China's shipbuilding sector would break over 12 million tonnes in 2010 as China rises to one of the world's biggest shipbuilders with its shipbuilding capacity reaches 23 million DWT by then.

According to Mr Liu Jianxun vice general manager of Pingxiang Steel's that domestic construction steel prices have increased rapidly this year bolstered by demand boom and escalating raw materials prices. Wire rod and rebar prices have gained over 20% from the year start. He believes the hectic demand growth is set to continue next year.