According to the Scottish energy research and consulting company Wood Mackenzie, China - the world's largest consumer with 49 percent of world demand in 2024 - will see a decrease in steel consumption by 5-7 million tons per year over the next decade. This structural decline changes the balance of forces in the steel industry, creating the possibilities for India, Southeast Asia and the Mena region to become new growth centers.
A decrease in the share of China in world demand
The Wood Mackenzie report says that Chinese dominance in consumption became significantly significantly. will decrease. By 2050, its share in world demand, according to forecasts, will decrease to 31 percent compared to 49 percent in 2024. The main drivers are:
- departure from the intensive growth of infrastructure.
- The weakness of the real estate sector, which is historically the cornerstone of Chinese demand for steel. expansion.
“The crisis of excess capacities in China reaches an unprecedented level with a predicted surplus of 50 million tons in 2025, which can grow up to 350 million tons in the long term,” said Charvi Trivadi, senior analyst Wood Mackenzie.
despite for the expected reduction in production by 240 million tons in the period from 2024 to 2050, China will remain dominant force in the global sentence due to its extensive production infrastructure, according to the report.
India and Southeast Asia: growing steel power plants
