China's cold-formed steel industry has historically faced limitations due to low production of steel strips. However, with the rapid development of China's steel sector in recent years, the production of these essential raw materials has significantly increased. This growth presents a valuable opportunity for deep processing, particularly for cold-formed steel. As the steel industry and related sectors like steel structures continue to expand, the demand for cold-formed steel is on the rise, signaling a new era of growth for this versatile material.
Cold-formed steel is an economical and energy-efficient structural material that has gained significant momentum in recent years. It is widely used across various industries, including highway guardrails, steel construction, automotive manufacturing, container production, steel formwork and scaffolding, railway vehicles, shipbuilding, bridges, steel sheet piles, and transmission towers. These applications highlight its versatility and importance in modern infrastructure and industrial projects.
According to extensive research and analysis by Ding Guoliang, the current domestic demand for cold-formed steel stands at approximately 5.972 million tons, with projections indicating it will reach 8.45 million tons during the Eleventh Five-Year Plan period. Specifically, the demand for highway guardrail steel is currently around 350,000 tons and is expected to increase by 380,000 tons during this time. Steel demand for construction is anticipated to grow from 2 million to 2.5 million tons, while automobile steel will see an increase from 700,000 to 1 million tons. Container steel is expected to rise from 1.5 million to 2 million tons. Meanwhile, the market for steel formwork and scaffolding is nearly saturated, maintaining a steady demand of 1.1 million tons. Railway vehicle steel is also expected to grow, reaching 120,000 tons, and ship and bridge steel demand is projected to increase from 130,000 to 150,000 tons.
Steel sheet piles, although not yet fully developed in China, are a promising product. Currently, only about 10,000 tons are produced domestically, mostly for export. In many foreign countries, they are extensively used in water conservancy and civil engineering projects. With the right investment and development, this segment holds great potential.
During the Eleventh Five-Year Plan, the demand for steel sheet piles is expected to reach 500,000 tons, and the demand for cold-formed steel used in transmission towers is also projected to hit 500,000 tons. Other applications such as agricultural machinery, greenhouses, and shelves are expected to see their demand double from 100,000 to 200,000 tons. Despite this growth, the current market share of cold-formed steel remains relatively small—only 2% of total steel production—and is expected to rise to 3.4% during the plan period.
Over the years, user awareness of cold-formed steel has significantly improved. Its complex shapes, simple production processes, and flexibility make it an attractive option. It requires lower initial investment, offers faster production speeds, and allows for customizable dimensions. The surface is smooth, and dimensional accuracy is high. It can save up to 15–50% in metal usage compared to traditional hot-rolled profiles. Although the unit price may be higher, the overall engineering cost is often lower. These advantages have made cold-formed steel a highly competitive alternative, gradually replacing hot-rolled steel in many applications.
Despite its promising future, the Chinese cold-formed steel industry still faces challenges such as institutional barriers, intense market competition, limited cooperation, underdeveloped markets, outdated equipment, and lack of support from specialized units. To ensure sustainable and healthy development, strategic planning is essential. This includes expanding the market according to national conditions, establishing a comprehensive and advanced standard system, upgrading technology and equipment, enhancing technical management, and guiding rational industry development. By addressing these issues, China can position itself as a global leader in the cold-formed steel sector.
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