China, as the world's leading steel producer, is expected to consume 890 million tons of steel this year, leaving a significant surplus, MPI officials said. Official data released last week revealed that China produced 952.14 million tons of raw steel in the first 11 months of 2023, up 1.5% from a year earlier.
Despite previous estimates, China exported 82.66 million tons of steel products this year, the highest level since 2016. The country's steel industry has faced significant pressure from the embattled real estate sector, causing demand for construction steel to fall by 4.8% compared to 2022, or a total of 506 million tons, according to MPI researchers.
In 2024, steel demand is predicted to fall to 875 million tons, with researchers expecting a 4% decline in construction steel demand next year. However, they noted that demand from the infrastructure sector could slightly reverse the decline in the real estate market.
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