China’s total steel production is expected to fall in 2020 amid slow down in residential property construction and an overall decrease in total steel making capacity, according to Fitch Ratings. In Jan-Nov period, China’s production rose by 50mn mt to 750mn mt from the prior year period.
The overall decrease in steel production was on account of output curb and higher emission standards. Demand in 2020, will be supported by higher infrastructure investment and recovery in auto sales.
China’s annual apparent steel consumption is likely to fall, and exports are expected to rise if domestic demand is weaker than expected.