Baosteel expects 2020 China steel output to rise 4%, breach 1 bil mt for the first time

The year-on-year decline in home appliances production was also expected to narrow from double digits in H1 2020 to single digits in full-year 2020.

Production of air conditioners, washing machines, freezers and refrigerators over January-July dropped 8% year on year, improving from the 11% drop in January-June, China's National Bureau of Statistics data showed.

Meanwhile, China's property and infrastructure sectors will continue to provide firm steel demand in H2, benefiting long steel, as well as flat steel products used in infrastructure projects, such as in bridges, wind mills and hydropower plants, according to Baosteel.

The company expects long steel prices to be well supported through H2, while Q3 is likely to be the strongest quarter in 2020 for the flat steel market.