Shandong: optimistic about the market demand for steel products in the second half of next year

Wang Qingtao, president of the Shandong Coking Industry Association, told reporters recently that with the expansion of investment in railway construction in Shandong and the gradual recovery of real estate and manufacturing, it is expected that by the second half of next year, the demand for Shandong steel market will be greater than the peak of August this year. The coking industry will also recover.
By 2015, Shandong Province will build or rebuild 3,800 kilometers of railways. According to the preliminary budget, the total static investment in the large-scale construction and transformation of the railway road network in Shandong Province will exceed 150 billion yuan. In the fourth quarter of this year, the electrification reconstruction projects of Huangda, Zaolin, Dongping Railway and Lanyan Railway will start construction.
Wang Qingtao believes that the railway construction will directly stimulate Shandong steel production and benefit the upstream coke industry. According to reports, steel demand accounts for about 30% of railway construction investment. In other words, Shandong's future railway investment will directly bring about 50 billion yuan in market demand for the steel industry. Second, with the gradual restoration of real estate and manufacturing capacity, the output of the Shandong steel industry is expected to be greater by the end of the second half of next year than this year's peak, that is, more than 45 million tons.
Wang Qingtao predicts that by the end of next year, about 30% of the backward coking capacity will be eliminated. According to the national coking industry announcement, by the end of this year, coke ovens below 3.8 meters will be eliminated and coke ovens below 4.3 meters will be eliminated before the end of next year. He said that the coking industry will continue to focus on limited-price insurance to obtain appropriate profits. At the same time, conditional coking companies need to upgrade their production equipment to meet the increasing demand for steel production in the future.

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