MNI BRIEF: China Steel Demand Q2 Limited Rebound
China’s demand for hot rolled coil steel, a type commonly used in manufacturing, will show a moderate increase in Q2 underpinned by the government's drive for large scale equipment upgrading, Mysteel analysts said on Thursday.
Demand for rebar, used in construction, will also increase mildly following the NDRC’s commitment to launch all projects associated with last year’s CNY 1trillion disaster relief treasury bonds by June. The state planner was currently investigating the steel market to decide how best to implement output controls this year, analysts added.
China’s Ministry of Commerce large-scale consumer goods trade-in programme alongside related fiscal and credit support will generate over CNY1 trillion of domestic demand by boosting automobile and household goods consumption, consolidating economic recovery, a high-ranking official told MNI. (See: MNI INTERVIEW: China Trade-ins To Boost Consumption - MOFCOM's Xu)
Chinese demand for steel and copper construction products will fall over the second half despite government support measures, while appetite for those commodities used in manufacturing will grow as industrial output strengthens, local researchers have told MNI. (See: MNI: China H2 Commodities Demand To Show Mixed Sector Performance)