On December 8, the prediction report from China Metallurgical Industry Planning and Research Institute (MPI) showed that, the actual consumption of steel in China was 0.668 Billion Tons, 4.8% decreased comparing with that of last year, which fell for the first time since 1995.

“Great turns had occurred in the steel market of China, which announcing the start of Steel Industry into the stage of development with reduction.” indicated Mr. Li Xinchuang, Dean of MPI. The fall of demand of steel was directly the result of the reduced increasing rate in the development of downstream industry of steel. Among it, the consumption of steel in the Construction Industry in 2015 is predicted to be 7.2% decreased, while in the Machinery Industry, the consumption is predictedly 6.5% decreased, comparing with that of 2014.

It is also showed in the statistics that in the former 10 months of 2015, the loss of large & middle scale of steel enterprises has reached to 50%, and even in Hebei Province, the key region of Steel Industry, the loss scale has reached to 60%.

As China’s economy stepped into new normalcy, problems in Steel Industry including large number of enterprises, over production, and excess capability should be sloved. Based on the prediction, in 2016, the consumption of steel will be 3.0% decreased, and in 2030, the consumption of steel will not exceed 0.5 Billion Tons, which means the decrease of consumption of steel will last for over a decade.