Metals sector will remain robust in 2019

Steel demand will remain stable in 2019 amid increased investment in infrastructure amid continuing concerns that the impact of trade tensions on the world's largest steelmaker could shake the global market.

“We are confident in China's steel industry given its huge market potential and the resilience of China's economy,” said Yu Yong, head of the China Metallurgy and Metallurgy Association, at an industry forum.

“Increased investment in infrastructure, along with a rebound in shipbuilding and shipbuilding, will lead to a slight increase in steel demand. Meanwhile, steel demand in the mechanical engineering and household electrical appliances sector is likely to remain stable, ”added Yun.

The comments came when the country saw a 3.7 percent increase in infrastructure investment (excluding electricity) in the first 11 months of 2018. According to Yoon's forecast, the growth rate in the new year will be higher.

Yoon also noted that the demand for steel in the automotive industry is uncertain, as the outlook for auto sales in the new year will largely depend on policies aimed at increasing consumption. However, demand for steel in the real estate sector may decline as investment slows and construction volumes decline.

Yu's positive outlook on steel prospects in China contrasts with the forecasts of the Worldsteel Economics Committee. The committee said the lack of growth in steel demand in China in 2019 is likely to push global steel demand down to 1.4 percent from 3.9 percent.

“But the country's steel industry is facing a problem as new economically growing countries are emerging,” Yu added. According to him, this will be due to a drop in demand for steel in the growing developing sectors of China and increased requirements for steel quality on the part of manufacturers in the traditional sectors.

Other problems in Chinese markets have come from rising commodity prices, funding difficulties and tightening environmental regulations.

To better deal with the problems, it is expected that more measures will be taken for metallurgical companies.

Ansteel Group Corp said in the forum that it will continue to reform its operating mechanisms to improve productivity.

According to the group, such reforms have led to an increase in steel sales, which is nine times higher than before the start of the reforms.

Introducing new operating mechanisms for state-owned enterprises has proven to be an effective way to increase productivity, said Ma Jun, director of the Enterprise Research Institute at the State Council's Development Research Center.

“Other measures include further