China’s steel output expected to drop in 2020 after infrastructure, real estate boom led to record 2019

The world’s top steel producer is expected to produce 981 million tonnes of crude steel in 2020 and 988 million tonnes in 2019

Steel demand in China is expected to fall 0.6 per cent year-on-year to 881 million tonnes in 2020, but rise 7.3 per cent to 886 million in 2019

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China is expected to produce 981 million tonnes of crude steel in 2020 and 988 million tonnes in 2019. Photo: Reuters

Published: 12:14pm, 12 Dec 2019Updated: 12:14pm, 12 Dec 2019

China’s crude steel output in 2020 is expected to ease from a record high in 2019, a government consultancy said on Thursday.

The world’s top steel producer is expected to produce 981 million tonnes of crude steel in 2020 and 988 million tonnes in 2019, according to Li Xinchuang, president of the China Metallurgical Industry Planning and Research Institute.

Steel demand in China is expected to fall 0.6 per cent year-on-year to 881 million tonnes in 2020, but rise 7.3 per cent to 886 million in 2019, Li said.

“Steel consumption in 2019 is better than expected mainly due to rapidly growing infrastructure investment and real estate development, while industrial production is also generally stable,” Li said.

Steel consumption in 2019 is better than expected mainly due to rapidly growing infrastructure investment and real estate development, while industrial production is also generally stable

Li Xinchuang

Demand for steel in the construction industry is expected to rise 11.2 per cent this year to 478 million tonnes, but it is seen slipping 0.6 per cent to 475 million tonnes in 2020, Li said.