Author: Paul Ploumis
29 Oct 2014 Last updated at 02:10:14 GMT
BEIJING (Scrap Monster): According to World Steel Association, the Chinese steel demand growth will significantly slow down and may even stagnate in two years time. The steel consumption in the country is expected to peak in around 2015.
The Chinese economy has transformed from high speed growth to mid to high speed growth. This will drag down the steel consumption growth in the country, as investments take back seat. As per estimates, investment and construction activity accounts for nearly 50% of the country's steel demand.
The country continued to remain as the top producer of crude steel in 2013, with a total output of 779 million tonnes. With reference to data available for the initial eight-month period this year, the country's crude steel production has grown by 2.6% to 550 million tonnes over the corresponding period last year. However, Chinese apparent steel consumption has declined by 0.3% over the previous year, registering its first decline in 14 years. The ongoing capacity additions by Chinese mills look largely unfavorable, amidst weakening steel demand growth.
Earlier Australian steel giant, BlueScope Steel, too stated that the confidence levels in the country's building and construction sector has started witnessing big dips. The high steel demand growth in the country is expected to cool down further.