Demand surge for niche steel products to be boon for China mills
Reuters - China’s steel companies are banking on rising demand in 2020 for high-end, and higher priced, specialty metal products for use in new infrastructure projects to revive an economy that was already slowing before the recent coronavirus outbreak.
As much as 2.8 trillion yuan ($396.75 billion) of local government bonds have been pledged for metal-intensive projects designed to stimulate economic growth, including new light rail systems, energy grid upgrades and an accelerated roll-out of 5G network installations.
Li Xinchuang, chairman of the China Metallurgical Industry Planning and Research Institute (CMIPRI), a government think-tank, expects new infrastructure projects to increase direct demand of specialty steel products by around 33 million tonnes this year, or roughly the annual output of Brazil, the ninth-largest steel producer. Li did not give a 2019 figure.