China’s new rebar capacity could reach 2021 could reach 20mn mt. With the release of new capacity, annual production could, however, reach 12mn mt, up by 2mn mt from 2020, stated Liang Taigeng, general manager of Shanghai Hualei Enterprise Development, in an interview with China Metallurgical News. The country’s GDP is likely to go up by 8.2pc.
Liang believes with the country liberalizing imports of ferrous scrap, capacity utilization rates of EAFs are expected to go up in the year. This could also aid in raising rebar production. But the country’s capacity replacement plan is set to balance demand and supply.
The general manager believes demand for rebar in the infrastructure sector will rise by 5pc from 2020. Demand in the real estate segment is also expected to go up by 2pc. Driving the demand in the infrastructure segment would be projects like the Beijing-Tianjin-Hebei, Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area. He also states some cities in the country are in are still in a rapid real estate construction phase.
In terms of exports, Liang predicts rebar sales overseas could increase by 5mn mt over the 2020 levels. With countries rolling out COVID-19 vaccines, economies are set to recover, aiding demand to rise. Acceleration of the ‘Belt and Road’ project, could also aid exports.