SHANGHAI, Aug. 5 (SMM) – Beijing and Zhangjiakou won the bid to host the 2022 Winter Olympic Games. Will and how this will impact China’s steel sector?
“The hosting of the games in Beijing and Zhangjiakou, a city in Hebei Province, will increase domestic demand for steel products due to venue and infrastructure construction,” says SMM’s steel analyst.
It is reported that approximately $1.51 billion will be invested to build new venues and infrastructure facilities.
During the 7-year’s preparation for the Beijing 2008’s Olympic Games, around 85 million tonnes of construction steel was consumed annually. Despite a much smaller investment scale of 2022’s Games, it will give a boost to domestic steel demand.
Moreover, environmental protection issues facing the Hebei Province, one of major steel producing region in China, will be resolved in a more fundamental way. Inefficient steel capacities will be also phased out following stricter environmental efforts. These efforts will also accelerate the upgrading of steel industry in north China in the long term, SMM adds.
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