Chinese Steel Mills Expect Higher Steel Demand in 2021
Chinese steel producers remain bullish about domestic demand in 2021 amid a steady pipeline of infrastructure projects, while long-term plans to curb
Chinese steel producers remain bullish about domestic demand in 2021 amid a steady pipeline of infrastructure projects, while long-term plans to curb production to meet carbon emissions targets are expected to proceed slowly. Xinyu Iron & Steel Chairman Mr Xia Wenyong said in an interview “On the one hand, the price of raw materials has been strong but on the other, demand for steel remains strong. Downstream customers have very full export orders with a large number of mechanical and electrical and home appliances due to be exported. With 2021 being the first year of China’s new 14th five-year plan, demand for steel this year could exceed last year’s especially with many local governments pitching strong growth plans that would stimulate demand. Demand for mid to high end steel products would be strong, but construction materials used in real estate development could be subdued, especially since the government has been reining in speculative property sales by curbing easy credit.”
The manufacturing sector, particularly cars, home appliance and equipment production, will also grow and boost demand for steel. The recovery of the global economy will also deepen demand for Chinese steel. Strong demand for Chinese steel meant more imports of foreign steel are likely
Chinese steel mills face pressure to shift to greener methods of production in the next 10 years, after China committed to reducing its carbon dioxide emissions by at least 65% from 2005 levels by 2030 and to be carbon neutral by 2060.