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| China Steel Demand |
China’s manufacturing sector remains the primary engine of domestic steel demand, offsetting a prolonged downturn in the property market. Steel consumption in manufacturing is projected to grow by 3.3% year-on-year in 2026. Eurometal and S&P Global Energy CERA report that total manufacturing steel demand will reach 344 million tonnes.
At the same time, tightening international trade barriers pose significant growth risks for Chinese metal exporters. The manufacturing sector's share of total structured steel consumption in China will rise to 52%, reflecting a structural shift away from construction.
Therefore, Beijing is aggressively implementing capacity controls across heavy industries to curb overproduction. In parallel, strict carbon reduction targets and renewable energy quotas continue to reshape China's industrial landscape.
ScrapInsight Commentary
China's shift in steel consumption from real estate toward export-oriented manufacturing highlights the steel industry's adaptation to macroeconomic pressures. However, tightening global trade barriers and strict domestic decarbonization quotas will test the sustainability of this growth model.
