China's steel demand may decrease to 850m tons

China's steel demand may see a slight decrease of 1.5 percent to 850 million metric tons the next year, said the China Metallurgical Industry Planning and Research Institute on Friday.

The institute said China's steel companies are advancing towards greener and higher-quality practices, driven by the rapidly growing demand for low-carbon products from downstream industries like solar energy and electric vehicles that have been consequently reshaping the steel demand landscape.

Xiao Bangguo, deputy head of the institute, emphasizes the necessity for steel enterprises to navigate through uncertainties in both domestic and global economic spheres. "By elevating product standards and refining operational strategies, these enterprises can fortify their competitive edge."

The remarks came amid lingering challenges faced by the industry such as trade conflicts, carbon levies, evolving market demands downstream, and businesses' operational cost increases from low-carbon development.