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China's equipment renewals to boost new demand for higher-end steel products

Xinhua | Updated: 2024-05-02 20:04
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A cold-rolled steel factory of Baosteel Co Ltd in Baoshan district, Shanghai. [Photo/Xinhua]

BEIJING -- The country's action plan to promote large-scale equipment renewals is estimated to generate about 8 million tonnes in new market demand for medium and high-end steel products by the manufacturing industry, according to an industrial association.

The China Iron and Steel Association said that the action plan to boost equipment renewals and trade-ins of consumer goods, which was unveiled in March by the State Council, the cabinet, will lead to new demand for steel products by particularly the manufacturing and energy industries.

Jiang Wei, vice president of the association, said that the manufacturing industry's demand for steel has grown over the years, with the sector accounting for 48 percent of market demand in 2023, up from 42 percent in 2020.

With the optimization and upgrading of China's industrial structure, the demand structure for steel also changed, featured by falling demand in the construction industry and growing demand by sectors including automobiles, home appliances, shipbuilding, machinery as well as wind power and nuclear power, according to the association.

According to the association, the structure of steel products in China also continued to improve, with value-added steel products accounting for 35 percent of all exported steel products in the first quarter of this year.

Jiang said that value-added products were becoming the core element affecting the profitability of enterprises. "Optimizing the variety and adjusting the structure of products are critical amid fierce market competition."

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