Chinese stimulus will be good for steel demand
According to a recent MEPS report, the thrust of the recent Chinese stimulus package will favour steel industry demand. Investment is to be increased by Government in infrastructure projects. Subsidies will also be given to the domestic appliance sector in order to produce more energy-efficient products. Funds are also being released to build two new major steel plants in the south of the country.
The main impact of the stimulus – which centers on expansion of investment in infrastructure - will be to provide a boost to the producers of long steel products – meaning reinforcing bars, wire rod and structural sections. The stimulus will thus cause a significant rise in Chinese steel demand.
For original MEPS report, visit http://www.meps.co.uk/ChinaSteelNews0512.htm