Official: China's steel demand has peaked

Updated 2018-02-03 08:41:02 China Daily

Workers at a steel plant in Luoyang, Henan province.

China's demand for steel has peaked and the coming 14th Five-Year Plan period (2021-25) will witness a decrease in steel consumption in the construction industry, while demand in the manufacturing sector is expected to remain at the same level, according to a senior official.

During the period, steel consumption will mainly occur in the manufacturing industry, supplemented by needs in construction, said Shi Hongwei, director of China Steel Development & Research Institute, on Friday.

Specifically, steel consumption is expected to remain 600 million metric tons per year, with the manufacturing sector taking up over 60 percent.

Shi said that because steel products are always being upgraded, steel consumption in this sector will level off.

"The lifecycle of a ship is approximately 25 years, while that of an automobile is roughly 10 years. According to the statistics by the China Association of Automobile Manufacturers (CAAM), China's automobile output last year was 29 million. Theoretically, in 2027, or 10 years later, these cars will turn into scrap steel, and there will be a demand for new steel.

He pointed out that China has experienced two rounds of large-scale infrastructure construction periods in the past years. As infrastructure construction in the country matures, there will be a gradual decrease in steel consumption in related sectors during 2021 to 2025.

"In the construction sector, the lifecycle of infrastructure is rather long, resulting in a demand decrease," Shi explained.

As a pillar industry for realizing the Made in China 2025 initiative, the steel sector plays a crucial and active role in boosting the country's intelligent manufacturing.

According to Shi, overall, the future of China's steel industry is still promising.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58February 18 2018 13:02:17

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16February 18 2018 13:02:17

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18February 18 2018 13:02:17

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords