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Steel Structure Housing will Help to Resolve the Steel Overcapacity

Earlier this year, the NDRC and the Ministry of Housing bring forward requirements of completing the new Green Building 1 billion square meters; to the end of 2015, 20% of urban new buildings meet green building standards. Later, From the central to local have introduced rules for the implementation of the Development of Green Building. In green buildings, Steel structure building, especially of steel structure residential building, with its green low-carbon steel, energy saving,  high aseismic performance and other multiple advantages, was favored by the industry and related sectors.

CIC consultant researcher of metallurgical industry said steel structure housing development will help to resolve the steel overcapacity.

Construction steel in foreign countries now account for 10-30 of steel production, while in 2012 China’s steel output was 730 million tons, if the proportion of China’s construction steel can be increased to 10%, this figure will reach 73 million tons, and there is a gap of almost 43 million tonnes between quantity of Steel Consumed for building with excluding steel bar. And it is similar with China’s steel production overcapacity in 2012. Simply from the static figures, the living conditions of China’s steel enterprises will greatly get improved However, because of the type of product behind the numbers do not match, so the actual effect will be greatly reduced.

In addition, although with the exception of a few leading companies, other large steel companies are in the status of "hungry", and don’t have strong demand for launching new steel structure projects from the point of view of production capacity match. But the development of steel structure housing industry is bound to stimulate other enterprises, and is likely to make the expectation of resolving steel overcapacity to be in vain if banks and local governments to promote it.

In conclusion, although there are multiple policies to promote, but the steel structure housing development ultimately depends on the level of market acceptance, and there is no  obvious changes in the short term. in addition to market-oriented reform is a long process. However, recent initiatives reveals that our country has a lot of determination to promote market-oriented reforms, so iron and steel industry still has much more space to grow in the medium and long term, excess capacity is expected to be well resolved in advance.