China's steel demand may grow slightly and steadily in 2023

On October 19, the World Iron and Steel Association released the latest short-term (2022-2023) steel demand forecast report. The report points out that in the second half of 2021, China's steel demand once recovered, but by the second quarter of 2022, the COVID-19 was spreading in many places, leading to a reversal of the recovery of China's steel demand. The real estate market fell in depth. All major real estate market indicators were in a negative range, and the building area of projects under construction was reduced. However, thanks to the measures introduced by the government, China's infrastructure investment is now recovering, which will provide some support for the growth of steel demand in the second half of 2022 and 2023. However, as long as the real estate industry continues to be depressed, China's steel demand will not rebound significantly.

According to the World Steel Association, the weak recovery of China's new infrastructure projects and real estate market in 2023, as well as the government's appropriate introduction of small-scale stimulus measures and relaxation of epidemic control, may promote a small and steady growth of steel demand in 2023.