Sep 22, 2023Leave a message

The Belt and Road for driving the steel market

The Belt and Road for driving steel needs are mainly reflected in the following aspects :1. Transportation road investment construction: China is actively planning six major economic corridors with countries along the "Belt and Road" to jointly build smooth, safe and efficient transportation corridors, such as China-Mongolia-Russia, China-Central Asia-West Asia, China-Indo Peninsula, China-Pakistan, Bangladesh-China-India-Myanmar and other international economic cooperation corridors. In the planning of the six major economic corridors, the construction of high-speed railway network, especially the pan-European railway network, has become a priority construction target. (See Table 2) It is estimated that every 100 million yuan of railway infrastructure investment can pull about 0.300 million tons of steel demand, and the construction of countries along the "Belt and Road" involves 26,000 kilometers of high-speed rail, which needs to consume about 85.8 million tons of steel. 2, energy production and transmission channel investment construction: oil, natural gas, electricity and other energy production and transmission channels, is another important area of the "Belt and Road" construction. Including the construction of natural gas supply networks connecting the Northeast region, the Bohai Rim region, the Russian Far East region and parts of the Republic of Mongolia; Caofeidian will be built into a natural gas trading center port connecting China and Russia, Central Asia and offshore LNG imports with the consumption markets around the Bohai Sea and Northeast Asia; We will promote the interconnection of power grids between China and Mongolia and between China and Russia, and carry out the construction of UHV power transmission from Mongolia to Tianjin and Shandong. To carry out the construction of ultra-high voltage power from the Russian Far East and Siberia to China; Construction of long-distance transmission lines from Central Asia and West Asia to China. 3, investment and construction of related industries: around the multi-faceted channel construction of the above economic corridor, but also corresponding supporting such as energy, mining, crop production, processing and manufacturing, logistics and transportation, real estate construction, etc., resulting in multiplier effect and driving effect, promoting the development of dozens of industries in this region, forming a strong manufacturing and processing capacity. According to relevant studies, the multiplier effect of infrastructure investment is that every $1 invested in infrastructure investment can stimulate the demand for 3-4 dollars of investment in other industries.

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