BEIJING: China’s crude steel output in 2020 is expected to ease from a record high this year to 981 million tonnes, a government consultancy said.
The 2019 output for the world’s top steel producer is seen at 988 million tonnes, according to Li Xinchuang, president of the China Metallurgical Industry Planning and Research Institute. In the first 10 months of the year, China has churned out 829.22 million tonnes of crude steel, up 7.4% from a year earlier.
Meanwhile, demand is seen rising 7.3% to 886 million tonnes in 2019, but was expected to drop from that level by 0.6% in 2020, a report released by the research body showed.
“Steel consumption in 2019 is better than expected mainly due to rapidly growing infrastructure investment and real estate development, while industrial production is also generally stable, ” Li said.
Demand for steel in the construction industry is expected to rise 11.2% this year to 478 million tonnes, but is seen slipping 0.6% in 2020.Meanwhile, a rapid growth in output this year has stoked worries about China’s years of efforts to cut over-capacity, leading to a joint probe on production capacity at its steel mills by the National Development and Reform Commission and other government entities in November. — Reuters
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