Growth potential of steel demand in manufacturing industry in 2021

At present, China's manufacturing industry has obviously recovered from the impact of the epidemic, the capacity utilization rate has rebounded, the profit situation has improved rapidly, and the financing level has improved significantly. In terms of the output of steel downstream industry, the output of large tractors increased by 54.1% and excavators by 34.7%, which better supported the demand of steel plate for manufacturing industry.

In 2021, the shipbuilding industry is still facing greater downward pressure; the automobile industry is expected to achieve positive growth; construction machinery and equipment machinery are expected to continue to boom; from the perspective of manufacturing investment, the central government emphasizes to expand the investment in equipment renewal and technological transformation of manufacturing industry to promote the upgrading of manufacturing industry. It is expected that China's manufacturing investment will show positive growth in 2021. In 2021, driven by the high prosperity of manufacturing industry and optimized investment, the steel demand of manufacturing industry still has growth potential.

In addition, driven by global economic recovery and steel demand growth, China's steel export is expected to rebound in 2021, may exceed 55 million tons.