Demand for Steel in the 2013

It is expected that the demand of steel will rise up to 4.1% in China in 2013, according to a forecast from an industry experts. Due to increasing supplies and slow growth in the global manufacturing sector it is also predicted that there will be decline in the iron ore prices as  2013 China Hot Dip Galvanized Steel demand forecasts.

The report is also being issued by the Chinese Metallurgical Industry Planning and Research Institute on Tuesday, which forecasts that steel demand in China will reach up to 666million metric tons in 2013. As compared to actual consumption of steel, it was around 640 million tons in 2012 that will increase up to 3.6% in 2013. Li Xinchuang, head of the institute, said the positive factors creating the conditions for the increase in demand include new consumption-stimulating policies, fast-growing investment from the private sector, and rapid urbanization.  But he also warned that the industry  will continue be obsessed by over loading and narrowing profit margins, as well as increasing labor cost that leads to a weak global economy.

According to report it is also estimated that the industries will keep growing in 2013 that will lead to more consumption of steel use in containers and other useful appliances. It is also being expected from industry experts that the industry will recover itself in the next year only if sufficient funds will be allocated to new projects in the field on railway, construction, subways and airports.