On December 12, the Planning and Research Institute of Metallurgical Industry released the domestic steel demand forecast for 2020. The forecast believes that China's steel demand in 2020 will be about 881 million tons, a slight decrease year-on-year.

The above-mentioned institutions stated in the forecast report released on the same day that in 2019, benefiting from the stable growth of the domestic economy, China's steel consumption in major downstream industries such as construction, machinery, energy, and home appliances maintained a good growth trend, and promoted the rapid growth of steel consumption in China as a whole. . In 2020, China's economy will generally maintain a steady development trend, but the growth rate may further decline. Steel demand in the construction, automobile, shipbuilding and other industries will decline, steel demand in the machinery industry will remain basically unchanged, and steel demand in the energy and home appliance industries will continue to grow. 

Specifically, in the construction industry: from January to October 2019, the national real estate construction has been operating steadily and well, and the growth rate of development investment has remained high as a whole. Real estate development investment, new housing construction area and construction area increased by 10.3% and 10.0 respectively year-on-year. % And 9.0%; investment in fixed assets of highways, ports and terminals increased by 3.4% year-on-year; coal production continued to increase, but the growth rate slowed down; urban infrastructure construction continued to advance, maintaining small growth, and electricity, heat, gas and water production and The investment in fixed assets in the supply industry increased by 1.9% year-on-year, and the water conservancy, environment and public facilities management industry increased by 2.7% year-on-year. Therefore, it is estimated that the steel consumption in the construction industry in China will be 478 million tons in 2019, a year-on-year increase of 11.2%.

In 2020, with the continuous advancement of national regulatory policies, the real estate investment attributes will further weaken, but the housing construction sector will continue to run smoothly, and the growth rate of real estate development investment will slow down; the "transit to rail" of bulk cargo transportation will continue to be the main target of railway construction Direction, the state will focus on improving the rail transportation capacity of the main logistics corridors, and will continue to be included in the construction of special railways for large industrial and mining enterprises and logistics parks; with the continuous improvement of the capital system of fixed asset investment projects, effective integration of investment and risk prevention, highways and ports The construction of the wharf area will be strongly promoted, and port, coastal and inland navigation projects will become the focus of development; domestic energy structure adjustment will continue to advance, the level of clean and efficient utilization of traditional fossil energy will continue to improve, and the construction of a multi-energy complementary comprehensive energy system such as scenery, water and fire will be continuously improved; At the same time, considering the continuous advancement of new urbanization represented by the construction of 5G base stations, UHV, intercity rails, and new energy vehicle charging piles, it is expected that the overall urban infrastructure sector will continue to grow steadily. Therefore, the construction industry's steel consumption is expected to be 475 million tons in 2020, a year-on-year decrease of 0.6%.