China's steel demand will remain largely flat in 2020 due to an anticipated softening of its automotive and shipbuilding industries, according to the China Metallurgical Industry Planning & Research Institute (MPI).
The government research agency expects China's total steel demand in 2020 to amount to 881 million tonnes, down 0.6% from its forecast for 2019. It forecast China's 2019 steel demand to rise 7.3% year on year to 886 million tonnes.Construction sectorMPI expects steel demand from the construction sector to slide 0.6% to 475 million tonnes this year. Its forecast for 2019 is 478 million tonnes, up 11.2% year on year.But some industry analysts have a more bullish outlook for the sector, with the Chinese government expected to continue to use fiscal and monetary measures to stimulate domestic demand and maintain a steady stream of investments into infrastructure.Citic Securities chief economist Chu Jianfang noted that infrastructure would be a key highlight in 2020 to boost economic development. China's Finance Ministry in...