A government consulting agency said that after an expected decline of 4.7% this year, China’s steel consumption will decline by 0.7% year-on-year in 2022, tightening policies in the real estate market and suppressing uncertainty related to the new crown epidemic Demand.
The China Metallurgical Industry Planning and Research Institute (hereinafter referred to as the Metallurgical Planning Institute) said on Wednesday that China’s steel demand is expected to be 954 million tons in 2021 and will fall to 947 million tons next year.
The Metallurgical Planning Institute stated that with the support of proactive fiscal policies and prudent monetary policies, the overall economy will remain stable, but the slowdown in real estate investment and the uncertainty caused by the epidemic and raw material prices will curb steel demand.
“Consumption of construction, energy and containers…will slightly decline in 2022,” said the Institute of Metallurgical Planning, adding that steel demand for machinery, automobiles, shipbuilding and household appliances is expected to continue to grow.
He also said that as the government is expected to “appropriately” promote infrastructure construction, overall steel consumption will receive some support.
The Metallurgical Planning Institute stated that China’s crude steel output this year is expected to be 1.04 billion tons, which is lower than the peak of 1.065 billion tons last year.
In 2022, production will drop further. Analysts at the British Commodity Research Institute (CRU), a London-based commodity consulting firm, said at a seminar on Wednesday that they expect China’s steel production to fall by 1.8% year-on-year in 2022.
Driven by the decline in steel production and the increase in the use of scrap, the Metallurgical Planning Institute stated that the demand for major steelmaking raw materials will also decline.
China’s iron ore imports will fall from a historical high of 1.17 billion tons in 2020, and this year will be down 3.4%, and the rate of decline will accelerate.
Cheyenne Cox is a news report covering multiple Market and economy News. She is creative and highly professional writer. Cheyenne holds a degree in communication and journalism and has also a Diploma in digital marketing. She belongs to south Africa who has also lived in Europe and is currently based in the US.