CHINA October 08 2014 10:40 AM
SHANGHAI (Scrap Register): The apparent steel use in China is expected to slow to just 1% growth in 2014 to 748.3 million ton (Mt) with rapid cooling of the real estate sector as the government's efforts to rebalance the economy curtails investment and weakens business sentiment, said World Steel Association (worldsteel).
In China, the rebalancing and transition towards a consumption driven economy is not without challenges and uncertainties. Lastly, the recovery in the Euro-Area is still constrained by household and government deleveraging, said worldsteel in its Short Range Outlook.
The weak growth momentum will continue into 2015 and China's steel apparent steel use will grow by 0.8% to reach 754.3 Mt in 2015. However, possible use of targeted stimuli and easing of restrictions on the real estate market in response to slower GDP growth could increase the forecast, said worldsteel.