China's steel sector is seeing a rise in demand, which requires curbing import growth

Chinese steelmakers have offered to prevent a sharp increase in imports of industrial metals and reduce the purchase of steel scrap overseas, according to the China Iron and Steel Association (CISA).

Nine steelmakers, including the largest China Baowu Steel Group, Shougang Group and Ansteel Group, have expressed concern about the steel market amid coronavirus disruptions and rising production costs, the companies said at a conference held by CISA on September 9.

"In the steel sector, there will be an increase in demand, sufficient supply, a decrease, but still high stocks, a fall, but stabilization of indicators in the second half of the year," the steel body quotes the company.

Smelters advised the associations to strengthen monitoring of the steel trade, promote mergers and reorganizations, and ease supply and demand pressures for raw materials.

China's steel sector has bucked the trend of global sluggish demand due to the 2020 pandemic, supported by a host of economic stimuli such as investment in infrastructure, but also constrained by rising commodity prices and imports.

The world's largest metal consumers have increased their purchases of hot rolled coils and semi-finished products in recent months, boosted by declining foreign prices.

Total imports of steel products rose 59.6% in the first eight months of 2020, compared to the same period a year earlier.

He Wenbo, chairman of CISA, said at the conference to "get the right idea" on the recent net imports of crude steel and take new measures in the face of an unstable international environment to preserve the benefits of the industry.