CISA: Promising prospects for steel market in China

Wednesday, 25 May 2016 14:03:57 (GMT+3)   |   Shanghai
       

According to a new report issued by the China Iron and Steel Association (CISA), in the 2011-2015 period China produced 3.8 billion mt of crude steel, satisfying the demand coming from 65 percent gross domestic product (GDP) growth and 128 percent fixed asset investment (FAI) growth in China in the given period. 

In 2015, China’s crude steel output amounted to 804 million mt, down 2.33 percent year on year, while domestic steel pipe and steel plate outputs increased by 10.98 percent and 2.50 percent year on year, respectively. In particular, in the given year cold rolled sheet and galvanized sheet outputs rose by 6.49 percent and 2.67 percent on year-on-year basis, respectively. The reduced crude steel output and the increases in high-end steel product outputs in China indicate optimization of product structure to some degree. 

As indicated by the CISA, in 2015 China’s finished steel exports amounted to 112 million mt, up 19.9 percent year on year, equivalent to 103 million mt of crude steel, accounting for 12.81 percent of China’s total crude steel output in the given year. Meanwhile, China’s apparent consumption of crude steel in 2015 amounted to 704 million mt, accounting for 43.2 percent of aggregate global crude steel output, with China remaining the largest steel consuming market in the world. The CISA said that China would continue to see stable domestic steel demand at relatively high levels, adding that the prospects for the domestic steel market are promising amid the unbalanced levels of economic development in the different regions in China and expectations of medium-to-high economic growth in China.

Similar articles

Ex-Asia slab prices differ depending on destination, more declines expected

28 Mar | Flats and Slab

Chinese HDG export prices mainly stable, with negative bias in some offers

28 Mar | Flats and Slab

No halt to downtrend in SE Asia’s import billet market, more traders going short

28 Mar | Longs and Billet

Local coke prices in China fall again, decline likely to halt next week

22 Mar | Scrap & Raw Materials

Chinese HDG export prices fall slightly, but local market improves

21 Mar | Flats and Slab

Vietnam’s Formosa cuts HRC prices again in March as gap with China remains big

19 Mar | Flats and Slab

Chinese HDG export prices decline amid fall in local and futures prices

14 Mar | Flats and Slab

Ex-Asia wire rod prices fall, market awaits more output cuts in China to slow downtrend

14 Mar | Longs and Billet

Major steel and raw material futures prices in China - March 14, 2024

14 Mar | Longs and Billet

Vietnam’s Formosa cuts local HRC prices less than expected as import prices dip sharply again

13 Mar | Flats and Slab