November 22, 2008

Sichuan Province require large amount of construction steel

It is reported that the reconstructions in Sichuan Province after a huge earthquake on May 12 require large amount of construction materials. Supplies of glass and architectural ceramics in the province can meet the demand yet steel products, wall tile and cement are in severe shortage.

As per report total construction steel capacity in the province recorded 16 million tonnes and actual output reached 15.89 million tonnes. The province will suffer construction steel shortage of 3 million tonnes to 3.6 million tonnes annually during the reconstructions in the following three years.

Over 1500 wall materials enterprises in the province boasted capacity of 31 billion standard bricks and produced 22 billion standard bricks last year. Demand is estimated at 66.5, 48.4 and 34 billion standard bricks in the coming three years, with shortage of 35.5, 17.8 and 13 billion standard bricks respectively.

412 cement producers yielded 62.14 million tonnes of cement in 2007. Shortage will hit 53, 36 and 31 million tonnes respectively, given demand of 130, 116 and 108 million tonnes in the following three years. But due to technique innovation and new projects, total capacity will increase by 17.6, 15 and 14.2 million tonnes respectively and will gradually satisfy the demand.

The province can produce enough glass in view of output of 88 million square meters in 2007 and demand of 65.45, 46.88 and 32 million square meters respectively in the following years. Its architectural ceramics output of 530 million square meters in last year and sales from other provinces imply the material can be efficiently supplied in the following three years. Demand is estimated at 750, 535 and 370 million square meters respectively.

The province has taken temporary price intervention measures to ensure that prices of construction materials maintain at the levels on May 11.

(Sourced from MySteel.net)