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The so-called steel demand refers to the demand for steel enterprises,

29-11-2018

The so-called steel demand refers to the demand for steel enterprises, including both domestic production and construction needs, as well as export trade demand. What is the future demand for steel in China? Shengshida believes that China's steel demand will further increase due to the following five major forces.
China's urbanization is accelerating. At present, China is in the stage of rapid urbanization. A large number of economic industries and populations are concentrated in existing cities, especially first-tier cities. As a result, some cities are too large and the population is growing too fast, resulting in traffic congestion and environmental pollution. problem. Therefore, it is necessary to create new and sufficient scale urban spaces in suitable locations outside the major cities to undertake regional gatherings of economic industries and population. It can be expected that due to the development of urbanization, China may have more “new urban districts”, creating dozens of new population cities with a population of more than one million, and achieving balanced development in all regions of the country. This has undoubtedly added huge potential to China's steel demand, which is conservatively estimated to increase the demand for construction steel for billions of tons.

New technologies for high steel-intensive strength have emerged, and new technologies and engineering have created additional huge steel demand. At present, the climax of China's high-speed railway construction, the large-scale construction of urban rail transit, and the general development of reinforced concrete and steel structures have produced a much larger area of ​​steel than ordinary railways, ordinary roads, brick-concrete structures and earth-structured houses. The intensity of consumption has led to a significant increase in steel consumption for fixed asset investments.
China's industrialization process has been greatly shortened. Western countries have experienced more than 100 years of industrialization and urbanization. China's advantage of latecomers and other positive factors may only take one-third or even half of the time. This will make the annual steel consumption intensity greatly increase under the condition of constant total demand, so it will greatly increase the peak of China's steel consumption.
China's population base is very large. At present, China has a population of more than 1.3 billion. The middle class is equivalent to the total population of Western countries, especially the emergence of new consumer groups after the 1980s, 90s, and 00s. The new consumption concept and consumption behavior make Most of China's commodity consumption is in a "blowout" state, which of course also includes steel consumption.