How is steel consumption calculated in the main industries?
I. Calculation of Raw Steel Consumption
Crude steel consumption = Crude steel production – ((Steel exports – steel imports) x 10.96 + billet exports – billet imports + ingot exports – ingot imports)
II . Real estate
Real estate is one of the main industries for steel demand. Its operational condition directly affects the evolution of demand for construction steel.
| Use of steel in housing | ||
| Types | Steel usage in kg/ m2 | Median value |
| Multi-story brick residence | 30 | 30 |
| Multi-story structure | 38-42 | 40 |
| Low-rise buildings of 11 to 12 floors | 50-52 | 51 |
| Tall buildings of 17 to 18 floors | 54-60 | 56 |
| 30-Story Tall Building with a Height of 94m | 65-75 | 70 |
| Skyscraper with 28 floors and 90 m high services | 65-70 | 67 |
| Excess use of concrete and steel in villas compared to multi-story masonry residences and 11-12-story high-rise buildings | 50-52 | 51 |
| Industrial Buildings | 30-70 | 50 |
| The above residences were designed in accordance with the Seismic Design Rules for the 7 Degree Zone. | ||
The main indicators that directly stimulate demand for steel in the real estate sector are the construction area.
The linear relationship between construction area (X) and steel usage (Y) can be calculated as:
Y = 6400 + 0.0273X
III. The infrastructure
Infrastructure includes railways, highways, bridges, airports, communications, electricity, water utilities and other public facilities. This also covers social infrastructure such as education, science and technology, healthcare, sports and culture.
Use of steel in railways
Steel materials are mainly used for newly constructed railways, maintenance and modification of existing railways, locomotive and vehicle manufacturing and repairs, and railway bridge construction.
For every hundred million yuan invested in railway construction, an average of 0.333 thousand tons of steel is consumed.
Generally estimating that for every hundred million yuan invested in the construction of urban railway transportation, about ten thousand tons of steel consumption will be stimulated (including stations, equipment, etc.)
Steel used in airport construction
Each investment of 10 billion yuan consumes more than 10,000 tons of steel.
Highways consume steel
In highway construction, the main demands come from expressways, primary roads, secondary road construction and other road network construction. Among these, the demand for steel for expressway construction is the most significant.
Currently, steel consumption for each kilometer of expressway in our country is approximately 400-500 tons, estimated with an average value of 450 tons.
Port construction requires steel
The steel used in port construction mainly refers to civil engineering components, which include the pier, the access bridge, the protection of the foundations and the construction of the storage yard.
The construction of a concrete port pier requires approximately 1,000 tons of steel. Including materials used in transit, the total will not exceed 2 thousand tons. On the other hand, building a port berth with steel columns requires a significantly larger amount of steel.
If we include 8% for the use of steel in yards and warehouses, it is estimated that the average pier construction requires about 2,500 tons of steel.
4. Automobiles
The automotive industry is a significant downstream sector of the steel industry, with various types of steel accounting for approximately 70% of a car's total weight.
| Model | Passenger vehicles | Commercial vehicles | ||||
| Sedans | SUV | MPV | Crossover Vehicles | Trucks (including chassis and semi-trailers) | Bus | |
| Estimated sales in 2015, at ten thousand units | 1251 | 510 | 258 | 106 | 323 | 65 |
| Growth rate, % | 1 | 25 | 35 | 20 | 1.3 | 6.5 |
| Average Steel Consumption per Vehicle, in Tons | 1.16 | 1.55 | 1.55 | 0.88 | 3.42 | 4.49 |
| Steel consumption per model, in ten thousand tons | 1451.16 | 790.5 | 399.9 | 93.28 | 1104.7 | 291.85 |
| Total steel consumption, in ten thousand tons | 4131.40 | |||||
V. Household appliances
The home appliance industry is one of the significant downstream steel consuming sectors. Typically, large appliances account for about 90% of steel, while small appliances account for about 10%, and sheet metal accounts for 95% of all steel consumption.
On average, a washing machine consumes 21 kilos of steel, a refrigerator consumes 34 kilos and an air conditioner consumes 30 kilos. These three main products account for about 80% of steel consumption in the entire home appliance industry.
SAW. Shipbuilding
The steel demand of the shipbuilding industry mainly includes sheet metal, profiles and tubes, with sheet metal being the majority. All plates used in shipbuilding must be approved by a classification society and are mainly composed of medium and thick plates.
A small amount of thin plates are mainly used in the ship's superstructure. Ship type and tonnage greatly affect the amount of steel consumed.
Cargo ships
Building a 12,000-ton cargo ship requires 3,600 tons of steel. A 25,000-ton cargo ship needs 5,300 tons of steel, and a 66,000-ton cargo ship requires 11,000 tons of steel.
Oil Tanks
Building a 100,000-ton oil tanker requires 16,000 tons of steel. A 200,000-ton tanker needs 24,000 tons of steel, and a 300,000-ton tanker requires 40,000 tons of steel.
The above steel requirements are based on ship design and do not take into account the actual steel utilization rate.
VII. Petrochemicals
Drilling for oil and natural gas, transportation, machinery, ships, automobiles, household appliances, real estate and infrastructure all involve the use of steel.
The real estate, machinery and oil and natural gas industries are the main consumers of steel pipes.
| Apparent Consumption (in 10,000 tons) | Annual growth rate | |
| steel pipe | 8868 | 10.75% |
| Welded Steel Pipe | 6515 | 21.23% |
| Seamless Steel Tube | 2422 | -8.01% |
