China has announced a CNY11 trillion investment plan in 2020, according to Metallurgical News, a government agency.
Under the broad umbrella of the country-wide plan, five cities – Beijing, Fujian, Henan, Yunnan and Jiangsu – have all released investment plans specifically to counter the negative impact of Covid-19 on business and the economy.
Infrastructure development is a key aspect of all the plans, and Beijing’s Tianjin Hebei industrial region is an expected beneficiary of the investment push.
Crude steel output from the Beijing region accounts for one-fourth of China’s total output.
In Fujian, at least three steel makers, Fujian Hangcheng, Longyan Zhuolong, and Fujian Sanan, are expected to benefit from the infra push.
Henan, Yunnan and Jiangsu all have smelters and industrial plants that will benefit from the investment plant.
Hesteel group, the second largest producer of steel in the world, has established a special logistics division to smooth the return to full supply in the wake of the Covid-19 impact on transport of goods.