"Belt and Road Initiative" is expected to increase 1.5 tons of steel demand
According to the world's largest mineral company, BHP Billiton, Chinese aspiring "The Belt and Road" plan may increase the demand for steel 1.5 tons, which makes the plants grow at the rate in the next ten years.
BHP Billiton said President Xi Jinping plans to restore the ancient Silk Road, so that China and Central Asia, Southeast Asia, the Middle East, 68 countries and regions closer contacts, which may make China's steel demand growth rate doubled.
"This will drive demand for raw materials." "The additional steel demand will eventually be met by China," said Arnoud Balhuizen, BHP's marketing president."
This estimate coincides with the "Chinese BHP wants to The Belt and Road" plan to restore the demand for commodities, because China local economic slowdown, less consumption of raw materials.
BHP of "400 core projects The Belt and Road", a total of $1 trillion and 300 billion, and to evaluate the project amount of iron and steel. Allegedly, these projects may increase annual demand of 1.5 tons of steel, additional demand growth rate of about 3%-4%.
BHP said, Chinese steel mills will be able to meet the additional demand, because "the 68 countries The Belt and Road" plan covering only 10 is a net exporter of steel.
BHP Billiton pointed out: "Chinese suppliers are in the position of providing these products.". This, in turn, will help maintain the high rate of operation of China's steel production over the next 10 years."
BHP said 80% of the new 1.5 tonnes of steel will be used for construction and reinforced concrete and 20% for machinery and other equipment.
Balhuizen added: "we do not believe that demand for steel China has reached its peak, that The Belt and Road is very good."