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Chinese steel demand to surge in next decade – NDRC- 26 Apr 10

Reuters quoted a researcher from the country's top economic planner said Chinese steel demand will surge over the next decade as infrastructure and property development continue to drive economic growth.

Mr Hu Chunli from the National Development and Reform Commission's Institute of Industrial Development said efforts to adopt a less resource-intensive pattern of growth were unlikely to have an impact on steel consumption for at least a decade.

Mr Hu said "As the pressure to maintain economic growth is maintained, the structure of the growth is unlikely to change dramatically during the Twelfth Five Year plan and even the Thirteenth Five Year plan basically for the next 10 years."

He said that construction accounts for more than 60% of total investment and more than half of steel demand in China. He added that the steel sector had grown rapidly in the past few years due to robust demand, despite government efforts to curb overheating in the industry.

Apr 26, 2010 09:37
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