Steel demand from major downstream industries is expected to increase in 2018, as stated by the China Metallurgical Industry Planning and Research Institute (MPI) in a report issued on December 4. In particular, in 2018 finished steel demand from the construction, machinery, automotive, energy, shipbuilding and home appliance industries in China is expected to reach 388 million mt, 138 million mt, 59.50 million mt, 32.50 million mt, 14.50 million mt and 12.0 million mt, up 0.3 percent, up 1.5 percent, up 2.6 percent, remaining stable, up 3.6 percent and up 2.6 percent, year on year, respectively.
Li Xinchuang, vice chairman of the China Iron and Steel Association (CISA) and president of the MPI, stated at the press release that finished steel prices in China in 2018 will likely move at relatively high levels compared to the current year due to the elimination of outdated capacity and low-grade construction steel capacity. Meanwhile, he added that merging and reorganization will be a key task for the Chinese steel industry in 2018.