How will China’s steel structure demand evolve in 2026?

• • New energy infrastructure emerges as biggest growth driver

• • Demand for high-strength, corrosion-resistant steel strengthens

China’s steel structure industry is expected to see stable demand growth in 2026. However, demand is likely to shift away from traditional building construction towards new energy, advanced manufacturing, and infrastructure.

As an important segment of China’s infrastructure sector, annual steel demand from steel structures stands at around 100 million tonnes (mnt), making it one of the key pillars supporting domestic steel consumption. Flat steel and processed flat steel products account for 60-70% of steel used in steel structures.

With demand from the property sector continuing to contract, new energy projects, industrial plants, and transport and municipal infrastructure are expected to become the main sources of incremental demand. At the same time, steel consumption will increasingly shift towards high-strength, weathering, and corrosion-resistant steel.

Demand structure for steel-frame buildings continues to adjust:

Steel-frame buildings, including industrial plants, residential buildings, and public buildings, remain the largest source of demand for steel structures, accounting for around 37-38% of total consumption. Within this segment, steel demand from the property sector continues to shrink, while demand from industrial plants and public buildings is expanding.

Over the past two years, the property sector has been the main drag on steel structure output. New commercial housing starts have remained weak, with demand supported only by projects to complete previously sold homes and a limited number of pilot steel-frame residential developments. As a result, steel demand from residential construction has continued to contract.

Meanwhile, industrial parks, cold-chain warehouses, and standardised factories continue to be developed across China, while manufacturing capacity upgrades have kept orders for large-span steel structures stable. These projects mainly consume hot-rolled sections, steel plates, and processed flat steel products, with Q355B structural steel remaining the dominant steel grade. Order volumes have also shown relatively limited seasonal fluctuations.

Global and Chinese computing infrastructure has entered a new expansion cycle. Data centres are increasingly adopting all-steel structural solutions because of their faster construction and greater layout flexibility, continuing to drive demand for steel plates and structural sections.

Transport and municipal infrastructure also continue to provide underlying support for structural steel demand. Construction of steel bridges, high-speed rail stations, cultural and sports venues is progressing steadily, consuming large structural sections, wide and heavy plates, weathering steel, and steel pipes. However, demand from this segment remains highly dependent on project funding and construction schedules. As individual projects require large volumes of steel over concentrated delivery periods, demand typically shows clear seasonal differences between the first and second halves of the year.

Urban renewal projects, reinforcement of ageing buildings, and upgrades of public facilities for both routine and emergency use will generate additional steel demand, but their scale is insufficient to reverse the downward pressure from the property sector.

Steel demand from new energy infrastructure continues to grow:

New energy infrastructure is expected to be the strongest and most certain source of growth in 2026, with related steel demand forecast to increase year on year.

Photovoltaic mounting systems will continue to support demand for hot-rolled pickled coils and hot-dip galvanised coils. The trend towards larger wind turbines will increase consumption of thick-gauge medium and heavy plates and high-strength low-alloy steel plates used in wind turbine towers. Meanwhile, power projects such as substations will drive demand for structural steel and weathering steel, continuing to offset weaker demand from the traditional construction sector.

Demand for high-strength, corrosion-resistant steel rises:

The steel structure industry is seeing a clear upgrade in the mix of steel products consumed.

The share of high-strength steel grades above Q355 continues to increase, while demand for medium and heavy plates and hot-rolled coils remains more resilient than that for conventional structural sections. Weathering steel and low-alloy high-strength steel are steadily increasing their penetration in bridge construction and new energy projects.

Supported by the Belt and Road Initiative, exports to Southeast Asia and the Middle East are recovering. Overseas projects are placing higher requirements on steel quality, carbon footprint, and corrosion resistance, highlighting the export advantages of hot-dip galvanised products and standardised structural steel.

Outlook:

Over the longer term, the continued development of prefabricated construction and China’s dual-carbon policy will continue to promote the wider adoption of steel structures. As a result, the share of steel used for steel structures within China’s total crude steel consumption is expected to rise steadily.

Bridge construction, including railway, highway, and river-crossing projects, together with offshore engineering, chemical engineering, and new energy infrastructure, are expected to offer further growth potential. Overall, the industrial structure of demand in China’s steel structure market is expected to undergo accelerated adjustment in 2026.