On the 6th Steel Industry Development Strategy and Supply/ Demand Forum hosted by Steelhome on 23^rd-25^th April, Ms. Shi Yanqiu, Vice President of China Container Industry Association, discussed the container industry development trend and steel demand for container manufacturing for 2010.

Global container market demand is largely associated with world economy and trade, shipping industry performance, old container replacement, new container slots, energy and raw material prices.

Container industry would show a modest growth in 2010

Container market is closely connected to global economy, world trade and shipping industry. Since the financial crisis strike, container market has encountered bleak off-season as economy slumped and trade greatly shrank. The conference participants show great concern on whether container industry can move out of wane in 2010.  

First, world economy. Global trade and economy development are the two decisive factors in setting container market. Global economy may be on the track of recovery and modest growth in 2010. But before we rush to an optimist conclusion, uncertain elements should also be counted, like 2-digit unemployment rate in main economies, storms in financial field, fast price rise in bulk commodities, heating trade frictions, etc.  

Second, world trade. As the recovery trend in global economy is growingly obvious. negatives effects brought by the unveiling protectionism, consumption mode transition in developed countries might cast shadow on the upswing.  

Third, China . China is oriented to stimulate economic growth, adjust industrial structure, prevent inflation. Container throughput is rising, logistics industry show a steady rise.  

Fourth, shipping industry. Container shipping market would represent a mild increase in 2010, but the price level still has a long way to go to reach the level before the crisis strike. Container ship supply is anticipated to be higher over the prior year, but the idle shipment capacity still dismays the overall market running.  

Estimated steel demand of 2.45-3.30 Mt in container industry in 2010  

For the year 2010, steel demand is estimated to be 2.45-3.30 million tonnes in container industry.  

90 percent of China ’s container steel is made at home. But the four factors discussed above help to build confidence in the overall situation both home and abroad this year and steel demand from container manufacturing is predicted to rebound, with the volume to be 2.45-3.30 million tonnes. Container exports in March increased 57.1% YoY to 110 thousand units and export value upped 65.0% YoY to USD 264 million; container exported during Q1 reached 310 thousand units, up 123.8% YoY, and export value up 0.4% YoY to USD 678 million.