China’s steel sector to lower energy consumption by 3.4% in 2019

Published: Dec 20, 2018 12:24
Total energy consumption by China’s steel industry is expected to grow only 8.9% in 2018

SHANGHAI, Dec 20 (SMM) – Total energy consumption by China’s steel industry in 2018 is expected to grow only 8.9%, smaller than an 11% growth in output, the China Metallurgical Industry Planning & Research Institute said in its recent report on energy-saving across the country’s steel sector.

Energy consumption across the steel sector is likely to see a 3.4% year-on-year decline in 2019, the Institute added.

China’s output of crude steel is estimated to stand at 923 million mt in 2018, up 11% from 2017. Crude steel output is expected to decline 2.4% in 2019 and come in at 900 million mt.

The Institute expects output of pig iron to fall 2.5% in 2019, compared to an anticipated 1.6% growth in 2018.

Steel in China is likely to grow to 10 billion mt by 2020 when supplies of steel scrap grow by 210 million mt. By 2025, steel in China is expected to amount to 12 billion mt and annual addition of scrap supplies would reach 270-300 million mt, which can well supply the electric arc furnaces that produce steel in China.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
In the short term, ferrous metals will remain under pressure [SMM Steel Industry Chain Weekly Report]
3 hours ago
In the short term, ferrous metals will remain under pressure [SMM Steel Industry Chain Weekly Report]
Read More
In the short term, ferrous metals will remain under pressure [SMM Steel Industry Chain Weekly Report]
In the short term, ferrous metals will remain under pressure [SMM Steel Industry Chain Weekly Report]
This week, ferrous metals edged higher before extending their pullback, with coking coal posting the largest decline. At the beginning of the week, the National Development and Reform Commission (NDRC) and other departments issued a notice on launching a three-year campaign for energy conservation and carbon reduction in key industries, and news that the U.S. and Iran were to sign a memorandum of understanding on the 19th improved market sentiment, lifting all ferrous metals. In the latter half of the week, expectations for an eighth round of coke price hikes materialized in the futures market. However, as steel mill profits narrowed further and spot coke had largely priced in the eighth increase, further upside room was limited. Combined with emerging expectations of peak hot metal output, futures began to correct and cost support weakened. Meanwhile, May macro data came in below expectations, dragging the entire ferrous metals complex lower...
3 hours ago
Aluminum Alloy Prices Steady, Futures Edge Down Ahead of Dragon Boat Festival
7 hours ago
Aluminum Alloy Prices Steady, Futures Edge Down Ahead of Dragon Boat Festival
Read More
Aluminum Alloy Prices Steady, Futures Edge Down Ahead of Dragon Boat Festival
Aluminum Alloy Prices Steady, Futures Edge Down Ahead of Dragon Boat Festival
[SMM Aluminum Alloy Daily Review] Futures side, the most-traded cast aluminum alloy 2608 contract opened at 23,330 yuan/mt today. It rallied to an intraday high of 23,420 yuan/mt before bulls lost momentum and the price came under pressure, falling to a low of 23,250 yuan/mt. As of the morning close, it edged down 0.15% on the day. Spot side, the ADC12 market overall maintained a stable price trend today with limited fluctuations. SMM ADC12 held steady at 24,100 yuan/mt. With the Dragon Boat Festival holiday approaching, downstream die-casting enterprises showed limited purchasing interest, mostly restocking as needed, and no significant pre-holiday stockpiling activity emerged. Against a backdrop where both sellers and buyers lacked new drivers, enterprises generally held prices steady an
7 hours ago
China's Secondary Aluminum Alloy Inventory Declines for Third Week, Down 5,600 mt WoW
10 hours ago
China's Secondary Aluminum Alloy Inventory Declines for Third Week, Down 5,600 mt WoW
Read More
China's Secondary Aluminum Alloy Inventory Declines for Third Week, Down 5,600 mt WoW
China's Secondary Aluminum Alloy Inventory Declines for Third Week, Down 5,600 mt WoW
[SMM Aluminum Alloy Flash] According to SMM statistics, China's social inventory of secondary aluminum alloy ingots decreased by 5,600 mt WoW to 53,100 mt this week, marking the third consecutive weekly decline. From a driving logic perspective, on the supply side, a shortage of invoices forced some enterprises to cut production, leading to a continuous tightening of circulating supply in the market. On the circulation side, trader shipments increased, driven by a combination of factors including a widening spot-futures price spread, downstream restocking on demand, and producers' active buybacks.
10 hours ago