According to Mr Chen Dongqi vice president of Academy of Macroeconomic Research, NDRC China Economy already enters into the fourth round of growth at present which will bring in more increase in steel demand than that in the first three rounds.
Mr Chen said China is to develop low carbon economy. Electrified railway, high speed railway and underground railway will provide lots of steel demand as China stresses low carbon emission, speeds up the development in West China, the long transportation for natural resource from West to East and the urbanization.
He said that “Auto industry, showing strong increase this year, will largely push up steel demand, since China is expected to see a renovation in auto consumption in future. Now, only 8.8 against 100 families own car in China, the number will reach 10 against 100 this year as the auto consumption is estimated to reach 13.2 m units.”
Mr Chen predicted that “China GDP growth will exceed 8.2% this year and be up to 10% next year, mainly due to the excessively enlarged investment and consumption stimulated by China transnormal monetary policies.”
He said that the investment GDP growth will not be less than 25%, which will support the 10% GDP growth in China.
