Will steel demand decline or increase next year

Recently, steel prices have again seen big ups and downs. This is the manifestation of the immature development of the industry. At present, the top ten steel enterprises in scale only account for about 37% of the total output of the industry, and the concentration of the industry is low. "Although the industry is showing a warming trend, iron and steel enterprises should remain sober-minded, there are still many problems and challenges in the industry. For example, environmental protection, the impulse to expand capacity, high debt ratio, trade environment, macroeconomic downside risks and so on.

In 2019, China's steel demand in machinery, shipbuilding, household appliances, containers, railways and other industries will continue to grow, but steel demand in construction, energy, automotive and other industries will decline slightly. It is predicted that China's total steel demand will decline slightly in 2019.

According to estimates, China's steel demand in 2019 is 800 million tons, down 2.4% year on year; crude steel output is 900 million tons, down 2.5% year on year; pig iron output is 726 million tons, down 4.9% year on year; iron ore demand (62% or more) is 1.147 billion tons, down 4.9% year on year.

In addition, in 2019, except for Asia, steel demand will continue to grow in most parts of the world, but growth in some areas will decline. Global steel demand is projected to reach 1.711 billion tons in 2019, an increase of 0.2% year on year.