China’s steel production has reached a new level

China’s steel market will continue to expand in 2019. Driven by consumer demand and driven by new capacity and capacity utilization, China’s steel output of structural steel pipe is likely to reach a new level of 1 billion tons. In 2019, China’s steel demand is strong, and the total demand for crude steel (including exports) will be around 1 billion tons, which will naturally drive the corresponding growth of China’s steel production. According to statistics, in the first 10 months of this year, China’s crude steel output reached 829.22 million tons, an increase of 7.4% over the same period last year.

Pig iron output was 675.18 million tons, up 5.4%; Steel output was 1010.34 million tons, up 9.8%, both significantly faster than last year. As the situation of steel demand in the fourth quarter of this year is still good, stimulating steel enterprises to continue to increase production. It is expected that the statistical output of mild steel tube will approach 1 billion tons in 2019, and may even reach 1 billion tons, an increase of about 6% over the previous year.

In 2019, China’s crude steel production increased significantly and continued to speed up. In addition to strong domestic demand and enterprises’ competition for market share, China’s crude steel production also increased a lot of advanced production capacity in recent years. Statistics show that in recent years (2016-2018), the investment in ferrous metal smelting and rolling processing industry has reached one trillion yuan.From January to October this year, investment in ferrous metal smelting and rolling processing increased by 29.2% year-on-year.Such large-scale capital investment is bound to add a lot of advanced capacity of China hollow section tube.

Another important reason for the strong growth in Chinese steel production in 2019 is improved capacity utilisation. With the entry of large-scale investment, the technological level and management level of steel enterprises have been improved correspondingly in recent years. Statistics show that in the first three quarters of 2019, the capacity utilization rate of the steel industry increased by nearly 2 percentage points year on year, and that of some private steel enterprises exceeded 85 percent. Not only that, in recent years, the relevant departments “iron hand environmental protection”, for steel industry emissions put forward higher requirements.To adapt to this high-pressure situation, steel pipe suppliers give priority to the use of high-grade iron ore, but also to a certain extent to improve the production rate of existing steel capacity, that is, capacity utilization rate has been greatly improved.

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Post time: Nov-11-2020
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