On October 24, the China Iron and Steel Association (CISA) issued a press release in Beijing, regarding the operations of China’s steel industry in the first nine months this year. According to the CISA, in the January-September period this yera China’s steel industry faced oversupply, with apparent consumption for crude steel in the given period declining by 1.5 percent year on year to 731 million mt, while crude steel output indicated a year-on-year rise of 1.7 percent to 795 million mt, though steel exports amounted to 66.8 million mt, rising by 32 percent year on year. Demand for rebar and wire rod shrank due to the poor performance of China’s real estate sector, which contributed to the reduction in apparent consumption of steel in the first nine months.
As for the October-December period this year, the CISA predicts that China’s crude steel output may decrease amid the strict regulations on energy consumption and environmental protection, while demand for steel will likely improve due to the expected good performance in fields like the manufacturing industry, the automobile industry, home appliances, the shipbuilding industry, wind power and nuclear power,. In August, China’s Ministry of Industry and Information Technology and other six related ministry-level authorities jointly issued the Stabilization Work Plan for the Steel Industry, which is playing a key role in guiding the direction of development of the industry, bolstering market players’ confidence as regards future developments.
Moreover, the CISA has urged steel enterprises in China to produce based on orders received, and to focus on making profits instead of on blind expansion of production.