An Analysis of Positive Factors Affecting the Development of China's Steel Market

In 2013, the demand for China's steel market will “stabilize and increase”. Stability is the basis of next year's market, and there are indeed many positive factors on the basis of stability that can promote the growth of steel market demand. mainly include:

First, since the development of the domestic economy, since September, everyone has reached a consensus that the domestic economy is beginning to “stabilize and improve”, which lays a good foundation for the future growth of the steel market.

Second, next year or even the next few years, China will be in a period of concentrated release of demand for infrastructure projects. Since May of this year, the infrastructural projects approved by the National Development and Reform Commission and other relevant departments will form substantive demand for the steel market next year. Therefore, the centralized release of infrastructure projects will create a certain pull for the growth of China's steel market demand in the coming years. And the centralized release of demand for infrastructure projects is also sustainable.

Thirdly, 2013 is the year for the change from the Central Government to various localities. It will also be the introduction of new economic policies from the central government to local governments. The new economic policy tends to have more positive side than negative side. This has obvious influence on the steel market.

Fourth, although there are many uncertain factors in the world, overall, the world economy in 2013 is still in recovery period after the economic crisis. China's steel import and export trade is mainly in neighboring countries and emerging economies. In 2013, the economy of these countries is still a relatively strong and sustainable growth. Therefore, the external demand of the Chinese steel market in 2013 is still relatively optimistic. Cai Jin predicts that in 2013 China's steel exports will reach a level of more than 55 million tons.