China's steel demand expected to pick up in H2
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Update time : 2024-09-18 15:45:10
Demand in the Chinese steel market has been weak since the first half of the year, and as it enters the second half of the year, a recovery in demand can gradually be seen. One factor that contributed to the weak steel demand in the first half year was the suspension of infrastructure projects in some provinces in China and the slow progress of special bond issuance. From July to August, the central government's policy emphasis and the acceleration of local special bond issuance are expected to drive the growth of steel demand from September to October.
Special bond funds mainly flow to areas such as municipal construction, infrastructure, and affordable housing, which will promote the gradual release of steel demand in the second half of the year. In addition, China is promoting "three major projects," including affordable housing, urban village renovation, and "both emergency and leisure" public infrastructure. Many places have introduced relevant policies to actively promote urban renewal projects.
Finally, the "old-for-new" campaign will also boost steel consumption, which is mainly promoted by China's Ministry of Commerce. It has also shown results in the fields of automobiles and home appliances. In summary, China's steel demand in the second half of the year will benefit from the accelerated issuance of special bonds, the advancement of the "three major projects," and the promotion of the "old-for-new" policy.
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