How much crude steel will China produce in 2020

It is affected by many factors.In 2020, China’s steel and total steel demand of cold rolled steel pipe is strong. Total crude steel demand is expected to exceed 1.03 billion tons, an increase of more than 3%. Strong total demand, will naturally drive the national steel and steel production to continue to grow. According to preliminary estimates, the country’s crude steel output in 2020 will cross the 1 billion tons threshold, an increase of about 4% over the previous year, still no reduction.In the New Year, China’s steel and steel production continued to grow, not only because of demand, but also because in recent years, the steel industry has carried out a huge scale of fixed asset investment and added a lot of steel and steel advanced production capacity. Statistics show that in the first 10 months of this year, the investment in ferrous metal smelting and rolling processing industry increased by 29.2% year on year, showing a strong growth momentum.

Therefore, it is estimated that the year-on-year growth rate of investment in ferrous metal smelting and rolling processing industry will not be less than 20% in 2019, so the total steel and steel production capacity of structural steel pipe in China will be expanded in 2020, thus laying a solid foundation for the continued growth of its output. On the other hand, in the New Year, the scientific and technological level and management level of China’s steel enterprises continue to improve, and the increase in the use of high-grade iron ore under higher environmental protection requirements will also to a certain extent increase the output rate of existing steel capacity, that is, the capacity utilization rate will be greatly improved. According to the existing capacity estimation, every percentage point increase in capacity utilization can increase crude steel output of square steel pipe by 14 million tons. If there is no big surprise, it is expected that China’s crude steel capacity utilization rate will be more than 85% in 2020.

Similarly, the growth rate of China’s steel and steel production will also fall in the New Year due to the improvement of the comparison base level. As mentioned above, China’s crude steel production is expected to grow by about 4% in 2020, which is at least 2 percentage points lower than the growth in 2019. Continued growth in Chinese steel production in the New Year, coupled with stricter environmental emissions requirements, has also provided room for growth in demand for round steel pipe. On the other hand, the growth rate of China’s high-grade iron ore import in 2019 is significantly lower than the growth rate of pig iron production, the domestic inventory is weak, and there is a large demand for replenishment.