Prospects of Chinese steel market in 2012
Release time：2017-03-14 Befrom：Weifang Machine Tool No.2 Factory Co. LTD
To talk about China's steel, we must combine China's national conditions; When it comes to China's economy, we must have a global perspective. Otherwise, many things are hard to explain... It can be said that the Steel market in China will improve in 2012, unless the Chinese economy and the world economy overcome the 'old troubles'. Otherwise, China's steel market is still difficult to shake.
Domestically, the Chinese economy faces downward pressure. In terms of investment, the growth rate of fixed asset investment will fall this year. Among the investment, manufacturing industry accounts for 35%, infrastructure (electricity, transportation, water conservancy, environment and public facilities) 25% and real estate 22% or so. Investment in manufacturing will slow to 20% this year as it is highly correlated with exports, infrastructure investment and corporate profits. The real estate investment will be slowed down to 15% due to the impact of the regulation, and low-income housing will be reduced due to the decrease in land purchase and new construction projects. In the middle of this year, there may be a significant decline, and real estate investment will decline and supply will also slow down. This year, fixed asset investment will increase by around 20% in nominal terms. GDP growth could slow further to around 8.5%.
Internationally, the world economy continues to slow down. According to the World Bank's simulations, growth in developing countries could fall from around 6% in 2011 to around 5.5% in 2012 as unease rises. Rich-world growth is likely to slip below 2% in 2011 and 2012. The spread of financial problems in developed countries to developing countries has led to slower growth and reduced poverty reduction, with the exact transmission mechanisms varying from country to country, including trade links, the vulnerability of financial systems and the risks of reduced trade and infrastructure financing. At the same time, the current economic problems in Europe have become political problems, and the future development situation is extremely complex.
