In 2020, the consumption of steel in China will increase compared to 895 million tonnes under the impact of government measures to stimulate the economy, including public investment, tax cuts and expansion of lending to the real sector.
But in the future this rise will be replaced by recession.
This forecast was put forward at the 11th China Iron & Steel Development Forum, the chief engineer of the Central Institute of China metallurgical industry of China Metallurgical Industry Planning and Research Institute Lee Sanchuan.
According to him, by 2025, the apparent demand for steel products in China decreased to 850 million tons due to an increase in the GDP share of services and, accordingly, reduce the influence of industry.
Meanwhile, the Ministry of industry and information technology of China plans to tighten rules that from 2016 the year were the replacement of obsolete production capacities for a new one.
As reported at the Forum the representative of the Ministry, during this time, the country was put into operation the production capacity of 246 million tons of iron and 271 million tons of steel. They replaced the old line with an annual capacity of 281 million, respectively, and 305 million tons a year. However, some companies admitted the violations, zaschitila outdated power several times, leaving them in the ranks instead of closing or including them in a furnace to make cast iron and ferroalloys. In the future, local authorities will need to take under special control the elimination of excess metals assets.
In 2020, China is expected to put into operation about 80 million tonnes of new steelmaking capacity. But permits for new projects to replace old lines on new was mostly suspended in January.