Is the rapid growth of steel consumption sustainable in China

2020 is an extraordinary year. Both crude steel and steel production in the steel industry have increased significantly, and steel consumption has increased by more than 8% year-on-year for 4 consecutive years in China. However, in the medium and long term, the rapid growth of steel consumption is unsustainable.

The new crown pneumonia epidemic is raging around the world in 2020, and the global industrial chain and supply chain have been hit hard. As the basic industry of the national economy, China's steel industry has withstood the test of the epidemic, has assumed the responsibility of ensuring supply, stabilizing employment, and promoting development, and has become the backbone of the domestic economic recovery. In 2020, the crude steel output reached 1.053 billion tons in China, an increase of 5.2% year-on-year. It is estimated that steel consumption will be 981 million tons, an increase of 9.6% year-on-year, an increase of 86 million tons, both hitting a record high. Is the rapid growth of steel consumption and the rapid release of steel production capacity sustainable? It needs to be analyzed carefully, treated rationally and dealt with scientifically.

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