After the setback to China’s steel industry from the outbreak of the pandemic, the world’s largest steelmaker appears set on a steady upward curve due to government policy support.
That as the main segments of China’s steel demand are all showing positive growth. Fixed asset investments in the country between January and September are up 0.8% and infrastructure construction during the period are up 0.2%.
The world’s No. 2 economy’s overall trade during the period was up 0.7%. Exports were up 1.8%, while imports dropped 0.6%.
“I would say 2020 is the policy year of China. Steel mills are not so concerned about seasonal demand as since March there is an upward trend,” Hongmei Li, analyst at MySteel told a webinar.
“The government has been spending heavily on infrastructure.”
China accounts for half of the world’s steel production and consumption. Therefore, it sets the tone for the global steel market. Its January-September steel exports were down 19.6% on year at 40.4 million tons, while steel imports during the period rose to15.1 million tons up 72.2%.
The nation’s GDP growth between January to September is up 0.7%, while the full year’s growth is expected at between 2%-3%, Li said.
The World Steel Association (WSA) expects China’s steel demand to grow by 8 % this year, while the world demand during the period is expected to shrink by 2.4%.