Infrastructure investment growth is expected to pick up pipe demands

Among the “troika” driving China’s economic growth, fixed asset investment has received particular attention. Recently, a number of provinces have conducted intensive research and supervision on steady investment of structural steel pipe and a number of major projects have been approved and started. It is reported that in the first half of this year, infrastructure investment increased by 4.1% year on year, 1.7 percentage points lower than the growth rate of the whole fixed assets in the same period, which did not fully meet the expectation of “strengthening the weak links”. Therefore, infrastructure investment in the second half of the year will continue to bear the burden of economic “steady growth”. Judging from the scale of infrastructure projects approved by the national development and reform commission this year and the current strength of local government bond issuance, infrastructure investment is expected to continue to pick up in the second half of the year. Guizhou province plans to invest 868 billion yuan in the next four years to implement the “six networks battle” for infrastructure, comprehensively promoting the construction of road network, water network, power grid, underground pipe network, oil and gas network, Internet and other infrastructure.

At the same time, the renovation of old urban areas will focus more on boosting infrastructure and boosting demand of hot dipped galvanized square steel tube. It is predicted that the renovation of old urban areas will boost investment demand by trillions of yuan. Analysis shows that as the main force of steady growth, infrastructure investment will maintain steady growth, thus driving the demand for building materials, steel pipes and other steel products, which is conducive to the stability of the steel market. Reporter discovers, yesterday spot market rises slightly, billet straight hair is smooth, after leading steel mill rises 20 yuan/ton to 3400 yuan/ton, spot high price trades turn weak, from 3490 yuan/ton falls to 3470 yuan/ton trades. Raw iron ore up 10-15 yuan/ton, coke hebei xuyang from tomorrow up 100 yuan/ton, scrap steel part up 10-50 yuan/ton, fair trade.

Analysts believe that from last week and yesterday’s trading performance, the market demand of round steel pipe is a bit more, while the supply side, with the implementation of production restrictions later supply pressure may be expected to reduce. Inventory pressure has eased. Mentality side: the manufacturer’s shipment and volume at the same time the market mentality is back to the temperature, coupled with the strong oscillation of the black futures disk, the short mood has been alleviated, the post-holiday mentality is cautious and optimistic.In addition: tangshan fenrun area independent steel rolling enterprises ,from September 16 0:00 extended the production time to September 22 24:00, September 23 0:00 to October 4 24:00 stop production.demand of square steel pipe has been eased, or support billet prices in the short term strong. In summary, with the spot market transactions and the mood of the improvement, prices or show strong oscillation trend.