According to the Reserve Bank of Australia (RBA ), reviewing the prospects for Australian miners to supply China, China’s steel demand would likely continue growing well beyond an expected peak in residential construction in the country later this decade.
The bank added that the outlook for China’s steel sector depends on more than just the construction sector.
According to RBA, a sharp rise in China’s automotive industry is likely to stimulate demand for more parking space in buildings, while growth in population density is likely to require taller buildings. Therefore, the growth of steel demand is not likely to decline to the same extent even though growth in residential construction would decline over the coming decades.
The RBA also forecasted that the country’s steel demand would peak in 2023. It remained positive that Chinese demand for Australian iron ore and coking coal would remain strong in coming years.
Source: China Metals e-mail email@example.com