China will be the world's biggest steel and iron manufacturer for the next 100 years, predicted Li Xinchuang, vice chairman of the China Iron & Steel Association and president of the Metallurgical Industry Planning and Research Institute.
China currently has the capability to produce over 800 million tons of crude steel per year. In 2016, the country's total crude steel output accounted for 50.3 percent of the world's 1.6-billion-ton output, according to statistics.
The country's actual consumption of steel and iron peaked in 2014 at 702 million tons, but then decreased to 664 million tons in 2015. However, last year, the figure witnessed a slight rise to 673 million tons, up 1.3 percent year on year. Experts explained that the turnover was spurred by the development of infrastructure and the automobile and real estate industries.
Li said the global steel and iron market has been transferred to China -- a change that he believes was driven by economic development and technological progress. He also noted that it was catalyzed by advantages related to labor, land and capital.
Li added that China's steel and iron industry is among the most competitive sectors of domestic manufacturing. The sector has reached a good standard in terms of quality, price, scale, service and brand. Additionally, China boasts the world's largest-scale and most dynamic demand, a sound industrial system and rich manpower, Li pointed out.
China has also made an unprecedented effort to cut overcapacity. Last year, the country announced plans to cut 100 to 150 million tons of overcapacity in the next five years.
