MPI expects stable Chinese steel demand in 2020

China’s steel demand will remain largely flat in 2020 due to an anticipated softening of its automotive and shipbuilding industries, according to the China Metallurgical Industry Planning & Research Institute (MPI).

The government research agency expects China's total steel demand in 2020 to amount to 881 million tonnes, down 0.6% from its forecast for 2019. It forecast China’s 2019 steel demand to rise 7.3% year on year to 886 million tonnes. Construction sector MPI expects steel demand from the construction sector to slide 0.6% to 475 million tonnes this year. Its forecast for 2019 is 478 million tonnes, up 11.2% year on year. But some industry analysts have a more bullish outlook for the sector, with the Chinese government expected to continue to use fiscal and monetary measures to stimulate domestic demand and maintain a steady stream of investments into infrastructure. Citic Securities chief economist Chu Jianfang noted that infrastructure would be a key highlight in 2020 to boost economic development. China’s Finance Ministry in...

Published

Jessica Zong

Miranda Song

January 07, 2020

10:10 GMT

Shanghai