The construction of the Belt and Road pr

Countries along the "Belt and Road" require approximately 70% of their annual demand for stainless steel coils through imports, which is an exciting news for Chinese square and rectangular tube enterprises and traders

In the "the Belt and Road" strategy, it is proposed to build six major economic corridors, namely China-Mongolia-Russia, New Eurasian Continental Bridge, China-Central Asia-West Asia, China-Indochina Peninsula, China-Pakistan, and Bangladesh-China-India-Myanmar. Guangfa Securities quoted data indicating that by the end of 2016, the announced infrastructure project investments for the six major economic corridors had reached RMB 163.9 billion and USD 28.2 billion; of which, over RMB 204.5 billion was used for the construction of railway infrastructure. With the construction of engineering projects, the demand for square steel tubes will be driven; this is a positive factor for China's steel industry, which is suffering from overcapacity.

According to the article "Analysis of the Impact of High-Speed Rail Events on High-Speed Rail Investment and Steel Demand" published in "Steel Economics" in 2011, every RMB 10,000 invested in railway construction will drive the consumption of 0.32 tons of square and rectangular tubes. A railway investment of RMB 204.574 billion can drive the demand for 6.55 million tons of square and rectangular tubes. Considering that there is still an investment of RMB 153.753 billion that has not been included, the total demand for square and rectangular tubes driven by infrastructure investment is expected to far exceed 6.55 million tons.