Analysis of the development status and future trends of the steel structure industry in 2018

Analysis of the development status of the steel structure industry

In developed countries, steel structure housing has a century of development history. Due to its incomparable advantages of other structures, steel structure has brought a deep revolution to the housing industry, thus representing the future development direction of housing in the international context . Relatively speaking, the steel structure industry in China started relatively late. Until the last ten years, steel structure construction projects have ushered in rapid development.

Figure 1: Development history of China's steel structure industry

Source: Collated by Foresight Industry Research Institute

Steel structure buildings belong to the prefabricated building category, that is, the prefabrication of parts and components in the factory is first obtained to obtain the steel frame required for construction, and then shipped to the site for assembly. Vigorous development of steel structure construction is an important way to implement the requirements of the green low-carbon cycle and improve the level of industrialization of the building. It is also an important measure to stabilize the growth and adjust the structural transformation and upgrade and supply-side structural reforms to resolve the excess capacity of the steel industry.

In recent years, the relevant industrial policies of the steel structure industry have been warmed up, and the government has issued a number of policies that have an important impact on the development of the industry. For example, at the beginning of 2016, the "Several Opinions of the Central Committee of the Communist Party of China on Further Strengthening the Management of Urban Planning and Construction" proposed that China should strive for about 10 years so that the proportion of prefabricated buildings in new buildings will reach 30%. Driven by policies, the steel structure industry is expected to usher in major opportunities.

In addition to favorable policies, the rapid development of the domestic construction market, rail transit construction, storage and logistics park construction, and energy construction projects driven by urbanization is also the main driving factor for the continuous improvement of the steel structure industry.

Exhibit 2: Summary of factors driving steel market growth

Source: Collated by Foresight Industry Research Institute

The expansion of market demand will promote the further development of China's steel structure technology and output. At the same time, new processes and new uses of steel structures will continue to emerge, promoting the continued healthy development of the industry. According to the statistics of the "Forecast of China's Steel Structure Industry Market Demand Forecast and Investment Strategic Planning Analysis Report" from the Institute of Foresight Industry in 2018-2023, from 2009 to 2016, China's steel structure production showed a year-on-year growth trend. In 2016, China's steel structure output was about 56.18 million tons, a year-on-year increase of 12.2%. From 2018 to 2023, the steel structure industry is expected to maintain steady and good development. It is estimated that by 2023, China's steel structure output will exceed 130 million tons.

Table 3: Trend of output and growth rate of steel structure industry from 2009 to 2017 (Unit: 10,000 tons,%)

Source: Collated by Foresight Industry Research Institute

Table 4: Forecast of China's steel structure output in 2018-2023 (Unit: 10,000 tons)

Source: Collated by Foresight Industry Research Institute

Analysis of the future trend of the steel structure industry

First, the industrialization of steel structure housing. Judging from the currently completed steel structure residential projects, the steel structure system is mature, the envelope materials are gradually improved, the assembly process is continuously optimized, and the overall performance of the house is greatly improved. The engineering cost has a market competitive advantage and has the conditions for industrial development. The structural system is becoming more and more mature, and steel structure housing has covered low-rise, multi-story, small high-rise and high-rise steel structure residential buildings. In addition, domestic steel structure housing accounts for less than 5% of the total housing, while Japan and other developed countries, this proportion is close to 50%, showing the great market potential. At the same time, the state advocates the construction of energy-saving and land-saving houses. At present, the design specifications and supporting technologies and materials for steel structure housing are basically available. These factors have paved the way for the industrialization of steel structure housing.

Secondly, large buildings use steel construction. With the elimination of bottlenecks such as unstandardized industry standards, lack of top-level system design, technical systems to be perfected, large cost disadvantages, and lagging public perception, it is time to promote steel structure construction. At the same time, under the background of the steady progress of China's industrialized water, the decline of the demographic dividend, and the rapid increase of the urbanization rate, the macroeconomic development foundation of prefabricated buildings mainly composed of steel structures has initially formed. Under the influence of various factors, the proportion of large and medium-sized buildings using steel structures will increase year by year.

Table 5: Comparison of economic and technical index coefficients of steel structure, steel-concrete structure and reinforced concrete structure

Source: Collated by Foresight Industry Research Institute

Third, technological innovation in the steel structure industry has increased. In recent years, the steel structure industry has made great progress in terms of scientific and technological investment, scientific and technological research and development, and technological innovation, but key technologies still need to be broken through, including structural system innovation and standard and normative reform, building maintenance system support and industrialization, standardization, industrialization, and information. Integration technology, design, construction and production integration of the whole life cycle. During the "Thirteenth Five-Year Plan" period, outstanding problems of technology and personnel will be solved, a set of industrialized technologies for the entire industry chain will be formed, and the production efficiency and quality of steel structures will be improved.

Finally, speed up the pace of going out. As early as the "Twelfth Five-Year Plan" period, companies in the steel structure industry have begun to go global in terms of technology, talents, layout and other aspects: carrying out related work such as foreign certification and licensing. Many companies with first-level qualifications in steel structure have obtained European and American , Japan, Southeast Asia market access certification; set up overseas business units or foreign branches in succession; in terms of talents, in addition to their own preparations, but also introduce high-end talents at home and abroad. Therefore, under the background of the “One Belt, One Road” strategy, the overseas market of the steel structure industry is expected to usher in explosive growth.

The above data and analysis are from "2018-2023 China Steel Structure Industry Market Demand Forecast and Investment Strategic Planning Analysis Report" issued by the Prospective Industry Research Institute.