12th five-year plan vital for China's steel industry

The Ministry of China Housing and Urban has officially announced the "Twelfth Five-Year Plan (2011-2015)" on construction industry. The national construction industry output value and added value are expected to increase more than 15% annually during the "Twelfth Five-Year" , while supporting large-scale construction enterprises to improve their core competitiveness.
Meanwhile, the plan requires the energy consumption of construction process of building products to decrease by 10%; the usage amount of concrete C60 and above should be taken up 10% of the total amount; HRB400 and above steel consumption would reach more than 45% of the total amount and the proportion of steel structure works would increase. In this regard, some analysts expect that China's steel output will reach 50 million to 65 million tonnes by the end of 2015.

The plan also suggests to support large enterprises in improving their core competitiveness, promote small and medium construction enterprises in developing a clear direction, as well as guide and promote qualified large design construction companies in combining  construction, capital operation and production management. Encourage them to develop from a single business to multiple businesses.

Analysts also pointed out that the steel structure industry is an important way for energy-saving building. The "Twelfth Five-Year Plan" proposed that by 2015, China's energy consumption of per unit GDP will decrease by 16% based on 2010, and the enhanced proportion of new steel structure building will promote the process of energy conservation.