Recurrent China Flooding Will Benefit Steel Industry

11 Aug 2020 by Local Press Report

A standstill in construction activities following heavy rain and massive floods in China recently dampened local steel demand in certain regions, but market watchers believe demand will benefit from water infrastructure projects worth 1.29 trillion Chinese yuan that the Chinese government recently committed to construct for long-term flood prevention. Local analysts recently told S&P Global Market Intelligence that steel mills were facing difficulties in transporting products and raw materials as a result of the poor weather conditions, leading to a pile-up in steel inventories.