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China's steel consumption won't peak before 2010

BEIJING - China's annual steel consumption volume is unlikely to peak before 2010 though the country's iron and steel production and consumption increased sharply in the past two years.

Statistics show that China's steel consumption has seen an annual increase of more than 3,000 tons since 2001, according to statistics released by the China Iron and Steel Industry Association.

However, the steel consumption will not peak before 2010 as China is in the process of industrialization and posting rapid economic growth, which will create bigger steel demand.

Some industrialized countries such as US, Japan, Britain and France hit peak steel consumption when their urbanization ratio topped 65% or even 90%, and their per capita steel output and steel consumption was at least 500 kg and 468 kg, respectively.

However, China only had a 37.7% urbanization ratio in 2001, and about 140 kg of per capita steel output and consumption in 2002. It is predicted to climb to 181 kg of per capita steel consumption by 2010.

Experts forecast that Chinas actual steel demand will reach 250 million tons in 2005 and reach about 310 million tons by 2010.

But the experts also warned that the iron and steel industry should avoid over-competition and duplication of construction to maintain a healthy market.

(Asia Pulse/XIC)

Oct 28, 2004

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