On December 1, China’s National Development and Reform Commission (NDRC) announced the allocation of the RMB100 billion investment which will be poured in the fourth quarter.
After calculation, analysts said that the investment will push up the steel demand for 4.1 million tons directly and 10 million tons indirectly. Therefore, the impact on steel demand will be noticed soon.
According to the statistics from Beijing Lange Steel Information Research Center (LSIRC), the domestic price of steel products remained stable during last three weeks and particularly the price of major steel products has slowed its decline, only down by 5 percent on October.
Thanks to the huge investment, the confidence in the domestic steel market begins to recover and some small or medium-sized mills have planned to resume the production. Source: Yieh.com