China's steel demand to rise 12 to 25% by 2015

Steel demand in the World’s biggest consumer, may rise by as much as a quarter by 2015 compared with demand last year, according to a projection from the China Iron & Steel Association (CISA), which represents producers. Consumption may increase by between 12 and 25 % from the level in 2010 to as much as 750 million metric tons in 2015, according to Luo Bingsheng, Deputy Party Secretary of the Association. He was speaking at a conference in Shanghai.

China’s steel production in 2011 will exceed 680 million tons, added Li Xinchuang, Deputy Secretary-General at CISA. This estimate is based on a forecast that China’s economy will grow by more than 9%. China’s apparent steel consumption, which includes metal for stockpiles, averaged 17% a year from 2006 to 2010.

CISA has also suggested that the Shanghai Futures Exchange list futures for medium-to-thick steel strips so producers and users can hedge price risks. Some 43% of the steel made in China is distributed by traders, which make prices more volatile, Li added.

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