China’s manufacturing sector’s share of total steel consumption is set to rise in 2024, with demand from the new energy and infrastructure sectors increasing.
Yao Lin, chairman of the China Iron and Steel Association, said at a press conference on Monday that the manufacturing sector’s share of steel consumption rose to 50% last year from 42% in 2020.
He explained that the increased demand from the new energy and infrastructure sectors has prompted steel companies to diversify their products and enhance and develop ways to produce special high-quality steel, according to Xinhua News Agency.
The real estate sector has been one of the main drivers of steel demand in China, but its slump in the post-pandemic era has negatively affected the market, causing local companies to turn to exporting excess supply.
According to estimates by Australian mining group BHP, the construction sector, including real estate and infrastructure, will account for 41% of China’s total steel consumption in 2023, compared with 30% for machinery manufacturing, 9% for transportation and 8% for durable goods.
In 2010, the construction sector alone accounted for 55% of total steel consumption in the world’s second-largest economy.
Yao added at the press conference that steel manufacturing consumption is expected to continue to grow this year, supported by large-scale equipment replacement and renewal programs, and consumer goods.
He said that demand for high-strength steel in sectors such as construction equipment and mining is also expected to rebound in 2025, but he did not mention the real estate construction sector.