Trends and development of steel demand in China: A bottom–up analysis

Xiang Yin and Wenying Chen

Resources Policy, 2013, vol. 38, issue 4, 407-415

Abstract: With economic development, the Chinese steel industry has rapidly expanded over the past three decades. However, this expansion has resulted in many problems, such as increasing energy consumption and excessive environmental pollution. Therefore, it is important to analyze the future steel demand in China. This study presents changes in steel production and apparent steel consumption in the years 1998–2010. Steel is mainly consumed by construction, machinery, automobiles, shipbuilding, railways, petroleum, household appliances and containers, and these nine industries are analyzed separately using stock based models. The study suggests steel demand in China will rise from 600milliont in 2010 to a peak of 753milliont in 2025, and then gradually decrease to 510milliont in 2050. The construction industry is the largest steel consumer, although its share of total steel demand will decrease in the future. Steel demand in automobile manufacturing, by contrast, will increase rapidly before 2035, and its share will increase from 6.0% in 2010 to 19.0% in 2050. Sensitivity analysis on the four major impact factors such as saturation levels, lifetime distributions, GDP and urbanization rate shows that saturation levels of different products greatly affect long-term and short-term steel demands, while GDP and lifetime distributions, especially the lifetime distribution of buildings, mainly affect the short-term and long-term steel demands, respectively.

Keywords: Bottom–up analysis; Stock-based model; Steel demand (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:38:y:2013:i:4:p:407-415

DOI: 10.1016/j.resourpol.2013.06.007

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