China - September 24, 2024

Rising demand speeds up steel industry's recast in China

(Voice_over)

China's steel producing industry is heating up as demand from the shipbuilding and new energy vehicle sectors drive production.

A steel maker in east China's Jiangsu Province said high-end steel products are also in high demand these days from the offshore engineering industry.

(Sound_bite)

Chen Linheng, Director, New Material Institute of steel mill:

"In the first half of this year, we sold about 1.3 million tons of advanced steel material, with a year-on-year increase of two percentage points."

(Voice_over)

The red-hot market demand has prompted at least 30 Chinese steel mills to focus more on value-added steel products with characteristics like high strength, high toughness and high corrosion resistance.

Experts say more mills are likely to follow as the peak sales season for the steel industry is yet to come.

(Sound_bite)

Gu Fengda, Chief Analyst of Metal Industry, Guosen Futures:

"From pinion steel, bearing steel to low-temperature nickel steel, Chinese steel products and their end products have registered a more than 15 percent growth in export. As the fourth quarter of a year is the golden season for both the demand side and the supply side in the industry, more leading steel mills are expected to make structural adjustment accordingly."

(Voice_over)

Data from the China Iron and Steel Association shows that China's steel exports topped 37 million tons in the first half of this year, up by about 30 percent year on year.

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