Bulletin – September Quarter 2012
Chinese Urban Residential Construction
Leon Berkelmans and Hao Wang
Rapid urbanisation in China has been a key driver of global steel demand and therefore demand for iron ore and coking coal. This article considers the medium- and long-term prospects for residential construction in China and their implications for steel consumption. Residential construction is projected to remain at a high level for the next couple of decades. Steel consumption in this sector is expected to be boosted further by demand for higher quality buildings. Some alternative scenarios are considered, examining both upside and downside risks.