China projected to see improvement in steel demand

China's steel demand in 2024 is expected to reach 875 million metric tons, a modest 1.7 percent year-on-year decrease. The decline narrowed compared with this year, indicating an anticipated improvement backed by a strong need from the shipping and energy sector, said the China Metallurgical Industry Planning and Research Institute.

Steel consumption this year is estimated to be 890 million tons, a 3.3 percent year-on-year decline. The dampened steel demand is partly influenced by the downturn in the construction sector, which accounts for about half of the total demand for steel, experts said.

Looking ahead, growth in steel demand is expected to pick up in industries such as machinery, automobiles, energy, shipbuilding, home appliances, and containers, while the demand in construction and hardware industries is projected to decrease.

Specifically, the shipbuilding industry is forecast to maintain a high-growth trend, increasing by 16 percent to reach 17.4 million tons. This year's steel consumption in the shipbuilding sector is estimated at 15 million tons, a 15.4 percent year-on-year growth.

In the automotive industry, steel consumption is estimated at 56.2 million tons in 2023, showing a 12.4 percent year-on-year growth. The projection for the following year indicates a 3.9 percent increase to 58.4 million tons.

The energy sector is estimated to consume 43.3 million tons of steel in 2023, with a year-on-year growth of 5.6 percent. The forecast for 2024 suggests that China's energy sector's steel demand will reach 45.4 million tons, a 4.8 percent year-on-year increase.