CHINESE FINISHED STEEL
PRODUCTION FORECAST TO INCREASE BY 5 PERCENT THIS YEAR
MEPS forecasts Chinese output of finished steel mill products for
sale, in 2014, at 830 million tonnes. This equates to an annual gain
of almost 40 million tonnes (5 percent).
Hot rolled coil production escalated by approximately 10 percent
last year. A more modest growth rate of 2.5 percent is envisaged in
Chinese shipbuilding output plummeted in 2013. However, a rise in
new orders was witnessed and this should provide some encouragement
to the yards that the worst may well be over. MEPS believes that
plate production will increase to 66.5 million tonnes in 2014 - up 2
percent on the year earlier figure.
The Chinese home appliance industry grew by a mid-single-digit
figure last year. A similar expansion is envisaged in 2014. Cold
rolled coil production is predicted to be 39.5 million tonnes in
Output gains of coated steel are projected to be more sustainable
this year. The recent trend has been for double-digit percentage
Further solid expansion in Chinese production and consumption of
medium sections and beams, including rails, is foreseen this year.
Railway construction should maintain its strong growth, albeit with
a slight reduction in spending planned.
Building and infrastructure will continue to drive demand in China.
This should support further solid increases in the output of wire
rod and reinforcing bar.
Production of merchant bar surged last year, supported by strong
export sales. We believe output growth will slow in 2014.
MEPS World Steel
Outlook Quarter 4-2013
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