The growth rate of China's steel demand falls in 2020

Looking forward to the demand situation of China's steel market in the new year, its total consumption continues to be strong, and there is still room for growth after the 1 billion ton step. However, due to various factors, the steel demand growth rate will drop significantly. According to preliminary calculation, it is estimated that the total demand for crude steel in 2020 will exceed 1.03 billion tons, an increase of more than 3%, at least 3 percentage points lower than that in 2019. Among them, the apparent consumption of crude steel in China is about 960 million tons, an increase of more than 4%; crude steel export (steel export conversion) is about 70 million tons.

In 2019, China's total crude steel demand has reached 1 billion tons, which makes the comparison base greatly improved. In this case, for every percentage point increase in steel demand growth in the new year, more absolute quantity is required to support it. Therefore, although China's iron and steel demand will continue to grow in 2020, its growth rate will fall. Whether it is the total steel demand or the apparent steel consumption, its growth rate will fall by 2-3 percentage points or even more than the previous year.