Building DK Electronics DK Energy DK Food DK Food SE Metal Metal DK Metal NO Metal SE Retail DK Wood DK  
 

Construction should continue to support China's steel industry in 2012

- By Charlotte Stubben

Despite recent gloomy figures for manufacturing in China, the steel industry should continue to grow in 2012, according to MEPS latest report China Steel Insight.

The average daily run rate for crude steel production in January/February 2012 was similar to that recorded in the same period in the prior year.

Moreover, it was substantially higher than the December figure. Steel output growth is forecast for this year.

Major mills found orders difficult to obtain
According to MEPS analysis, the smaller mills which predominately supply the construction segment have increased their contribution to the overall steel production figure. In contrast, the major mills which supply virtually all the needs of the manufacturing sector, have found orders more difficult to obtain.

Reduced import volumes
Weak economic indicators for most western nations are likely to lead to reduced import volumes for the Chinese steel mills compared to the recent past. Consequently, increased activity in the construction sector will be required to maintain a strong steel industry in 2012. The best prospect in the short term is the construction of economic homes.

The government has a plan to build 36 million economic houses between 2011 and 2015.

Good news for the steel industry
Incorporating private sector funding with that of the government investment would be good news for the Chinese steel industry. It may be possible for current restrictions on bank lending could be relaxed for projects which incorporated a proportion of affordable homes in the project. This in turn would be useful for the real estate segment and the economy in general – including the manufacturing sector, through sales of home appliances.

Write Comment
Popular Articles

Sign up for our newsletter
Already 11,557 subscribers.
View the latest newsletter.
Follow us on:

Australian miners raise iron ore output targets

April 22, 2014 12:35 PM

Reuters reported that Australian miners are racing ahead with plans to expand iron ore production to capture more of the Chinese market for the steelmaking ingredient, amid strong competition from the world's biggest supplier Vale of Brazil.

Siemens receives FAC for extended Aluminum hot-strip mill at Novelis

April 22, 2014 11:56 AM

In February, Siemens received the final acceptance certificate for the extension of an aluminum hot strip mill of Novelis Korea Ltd. in Ulsan.

European car sales rise for seventh straight month

April 22, 2014 11:55 AM

The Associated Press reported that European car sales advanced a seventh consecutive month as new models to replace aging vehicles and an economic rebound in Britain boosted demand at Renault, Ford and Peugeot Citroen.


See allNews from the companies

Great success for FJ Industries A/S at the Hannover Fair 2014

April 14, 2014 2:50 PM
Fj Industries A/S

FJ Industries A/S participated last week with a great looking newly designed stand.

AP&T to demonstrate press hardening at BLECH China 2014!

April 10, 2014 4:48 PM
AP&T

There will be strong focus on press hardening when AP&T exhibits at BLECH China 2014 in Suzhou May 7-9.

SVIA & Animex at Elmia Automation 6-9 may – Booth D02: 40

April 14, 2014 12:00 AM
Svensk Industriautomation AB

Visit the Automation Fair No1 in Sweden!

April 9, 2014
April 8, 2014
April 4, 2014
April 3, 2014
April 2, 2014
April 1, 2014
March 28, 2014
March 27, 2014