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CISA Forecasts Steel Oversupply in China in 2020

Steel News - Published on Tue, 14 Jan 2020

Image Source: yuantalks.com
China’s steel output in 2020 is expected to maintain the same robust growth that it had in 2019. China Iron and Steel Association has warned of a possible reemergence of oversupply in the Chinese domestic market as it expects growth in demand won’t keep up with supply this year. CISA said “China’s total output for crude steel in 2020 will grow at a rate similar to last year’s 6%, even as growth in demand will slow sharply to 2%, amounting to 890 million tonnes. Demand will soften this year primarily because of a slowdown in the growth of investment and new construction in the real estate industry. The slowdown will be sharp enough to offset the expected steady growth this year in infrastructure investment and the home appliance industry.”

CISA said “In addition, the international steel market isn’t in any shape to absorb China’s surplus steel production due to the China US trade war.’

Chinese steel output was around 980 million tonnes in 2019, while demand grew at similar rate to 875 million tonnes for the year. Last year, demand for steel maintained solid growth thanks to support from the real estate industry and infrastructure investment.

Source :

Posted By : Rabi Wangkhem on Tue, 14 Jan 2020
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