Growth in steel demand is expected to remain subdued in China next year as the government continues to shift its focus from manufacturing to services and steps up environmental protection measures, according to the World Steel Association.

"China's steel demand may remain relatively stable in 2018," said Wang Guoqing, research director at the Lange Steel Information Research Center. "Real estate controls and environmental protection measures have weakened steel demand, despite higher demand due to infrastructure investment and mechanical products associated with the Belt and Road Initiative."

During the first eight months of this year, China's infrastructure investment grew 19.8 percent compared with the same period last year, and is expected to maintain a higher growth rate for the rest of the year.