China is set to produce 825 million metric tons of crude steel in 2017, a 0.5% increase on last year, but 87% of it is destined for the domestic market, according to a report by BMI Research. The paper cited government-backed infrastructure projects involving "airports, water, rail, power, and roads and bridges" as the driving force behind the steel demand, allaying "Western fears of steel dumping". China's demand has been growing at an annual rate of about 5% since 2011, when its economy was still reeling from the global financial crisis.
China is set to produce 825 million metric tons of crude steel in 2017, a 0.5% increase on last year, but 87% of it is destined for the domestic market, according to a report by BMI Research. The paper cited government-backed infrastructure projects involving "airports, water, rail, power, and roads and bridges" as the driving force behind the steel demand, allaying "Western fears of steel dumping". China's home-grown requirements are set to reduce the global surplus from 10.9 million tonnes in 2016 to 3.2 million tonnes in 2017.