China's crude steel output expected to rise in 2021

BEIJING: China is expected to produce 1.065 billion tonnes of crude steel in 2021, up 1.4% from a forecast of 1.05 billion tonnes in 2020, a government consultancy said on Monday.

Steel products demand in China is expected to rise 1% year-on-year to 991 million tonnes in 2021, slower growth than the 9.6% increase to 981 million tonnes expected in 2020, according to Li Xinchuang, chairman of China Metallurgical Industry Planning and Research Institute (MPI).

Li said steel products consumption will hit a record high in 2020, and grow slightly in 2021.

Steel demand from the construction sector - the top steel consumer - is expected to grow 1% to 580 million tonnes in 2021, he said, after surging 13.4% to 574 million tonnes in 2020.

China's iron ore imports are expected to decline in 2021 by 2.7% to 1.14 billion tonnes, compared with an expected rise of 9.5% to 1.17 billion tonnes in 2020.

"Iron ore demand could ease a bit in 2021 on increasing input of steel scrap as well as environmental pressures and low-carbon development," Li said.

He estimated 2021 iron ore demand to decline 1.2% to 1.38 billion tonnes, following a 9.2% rise in 2020.

On Monday, China's Dalian Commodity Exchange iron ore futures hit a record high of 1,135 yuan ($173.69) a tonne, after a landslide at a mine operated by iron ore giant Vale SA added to supply worries.

China's 2021 coking coal demand was seen falling 1.9% to 1.02 billion tonnes.

Coke output in 2021 was expected to fall 1.5% to 463 million tonnes.