Steel supply in China is likely to register a dip of 1.9pc, while demand is expected to rise in 2021, according to a China Metallurgical News report. With the country implementing supply-side reforms, present estimates suggest crude steel output could touch 1.04bn mt in the year. Rolling line production capacity, however, could show an increasing trend with new capacity of 34.5mn mt in 2021. Iron ore prices are also expected to decline due to increased supply and production cuts in Tangshan.
Steel supply and demand in 2021 may achieve an equilibrium, but the structure of steel demand could change, states the report. Sales volume and price for industrial material and mid-to-high-end steel is likely to witness a growth. Steel consumption and investment in the manufacturing sector, both are expected to rise by 10pc from last year.