Shanghai, 28 December 2011: Reuters

China's consumption of steel products is expected to reach 646 million tonnes in 2012, marginally higher than this year's level, the state-owned China Securities Journal reported on Wednesday. The report said the China Metallurgical Industry Planning and Research Institute had estimated consumption of finished steel products in the world's top steel producer and consumer at 610 million tonnes this year.

Demand from the construction sector, which consumes more than half of total steel output, would reach 350 million tonnes, up 4 percent from 336 million tonnes this year, it said. China will maintain its property market tightening policy and expand a pilot property tax programme to curb speculation and prevent home prices from rebounding, which could cap construction steel demand growth.

Domestic steel output will rise 5.8 percent to a record 728 million tonnes in 2012, according to the median estimate in a Reuters poll of 12 brokerages and industry consultancies.

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