China's steel consumption is expected to exceed 970 million tons this year

With the increasing demand of downstream industries, it is estimated that China's steel consumption will continue to grow on the basis of last year's high level in 2020, with a total consumption of more than 970 million tons, an increase of about 8% year-on-year.

With China's economy gradually turning to high-quality development, the steel consumption intensity per unit of GDP shows a downward trend. In the long run, China's economic growth will slow down, and steel demand will gradually fall.

However, in the short term, China's steel consumption remains high. In 2020, under the positive financial policies of the state, such as increasing tax reduction and fee reduction, and expanding government investment, the demand of steel downstream major industries such as construction will increase, which will promote the increase of steel consumption. In particular, in the second half of the year, the newly started and construction area of real estate, automobile production and ship production all increased, which strongly supported the steady growth of steel consumption.