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China Steel Demand to Rise 2.6-4.6 Pct Annually

China Steel Demand to Rise 2.6-4.6 Pct Annually

 
China's crude steel apparent consumption is predicted to increase 30 million tonnes or 5 percent year on year to 632 million tonnes in 2011, according to Deng Qilin, Chairman of China Iron and Steel Association (CISA).
China steel industry will face challenges in three aspects during the 12th five-year plan period: a) national economic growth will slow down; b) labor and raw material cost will present upward trend, which further squeeze profit margin of steel industry; b) constraints of resource and environment will further tighten.

Steel price goes up for the consecutive three months in January and it is expected to extend the upward trend as steel demand will keep rising both at home and abroad while raw material price will further increase.

China's crude steel demand is expected to grow by 2.6-4.6 percent annually over the next five years, the China Securities Journal reported on Tuesday, citing the China Iron & Steel Association (CISA).

In its suggestions to the government regarding the country's 12th five-year development plan for the steel sector, CISA forecast China's annual crude steel demand would reach 670-750 million tonnes for the five years to 2015.