According to a report issued by the Chinese Academy of Social Science (CASS), 70 percent of China’s population now lives in towns and cities or in adjoining areas, which indicates that the country has completed its urbanization process.
Li Ping, director of the institute of quantitative economics at the Chinese Academy of Social Sciences, stated that the completion of urbanization means that China’s large-scale construction of infrastructure and construction of cities and towns will be completed soon, which will result in reduced demand in energy-intensive sectors, including steel, non-ferrous metals and building materials.
According to the report, in the 2006-15 period China constructed 50 square meters of housing for every urban resident, while China’s supply of housing has exceeded total demand. Considering that the real estate sector is a key driver of demand for steel, if it indicates a slowdown in development, then demand for steel will also decline, the report concluded.