Spring Festival steel trend
Ren Qingping predicted that, at the beginning of next year, with the continuous implementation of various macro favorable policies, the policy effect will gradually appear, conducive to the recovery of the steel market, mainly in the following aspects:
First, improved and adjusted epidemic prevention policies accelerated economic recovery. In December, epidemic prevention policies in many places across the country were significantly improved and adjusted, greatly increasing expectations for stabilizing the economy and injecting strong impetus into steel demand.
Second, it has become a consensus to "fight the economy" next year. From December 15 to 16, the Central Economic Work Conference was held in Beijing. The meeting pointed out that next year's economic work will involve a lot of tasks, and we should proceed from the overall strategic perspective, improve social psychological expectations and boost confidence in development, and do a good job. At present, the foundation of our economic recovery is not yet solid. The "triple pressure" of demand contraction, supply shock and expectation of weakening is still great, and the external environment is turbulent, which brings a deepening influence to our economy. However, we should note that the Chinese economy is resilient, has great potential and is full of vitality. Various policies continue to deliver results. Next year, the economy is expected to pick up overall. Ren Qingping said it is foreseeable that the steady economic growth next year will accelerate the release of steel demand.
Third, favorable policies for the real estate market have been introduced. Recently, the government has successively introduced favorable policies for the real estate market to unblock financing channels for real estate enterprises from the three aspects of credit, bonds and equity. "It is reasonable to expect a slow healing of the housing market in 2023. As for the level of recovery, it depends on the improvement of sales market policies and market expectations. "One thing is certain, however, that the 'steel demand' of the real estate industry in 2023 will be more resilient than that in 2022." Ren Qingping predicted
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Fourth, our country steel export situation is further improving. Ren Qingping introduced, in the early stage of obvious price advantages, driven by the recovery of export orders, Chinese steel exports continue to show a rebound trend. China exported 5.59 million tons of steel in November, up 28.2 percent year on year and 7.9 percent month on month, according to the General Administration of Customs. In the first 11 months of this year, the country exported 61.948 million tons of steel, up 0.4 percent year-on-year.
Fifth,Construction began on a number of major projects across the country. According to the "Report on the Implementation of China's Monetary Policy in the Third Quarter of 2022" released by the People's Bank of China, by the end of October, a total of 740 billion yuan had been invested in two batches of financial instruments, effectively supplementing the capital of a number of major projects in the fields of transportation, energy, water conservancy, municipal administration and industrial upgrading infrastructure, and driving the start of major projects in many places across the country. According to incomplete statistics, as of early December, 1,362 projects supported by policy and development financial instruments in 14 provinces had been started. This batch of projects is expected to set off a new construction climax, and then pull the "steel demand" warming up.