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[SMM Steel] 150th major water conservancy projects will be built in three years, and the "rigid demand" big project will come.
Jul 28,2020 18:13CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

150 major water conservancy projects will be built in three years, and the "rigid demand" big project will come.

Recently, the National standing Committee of China has studied and deployed the construction of 150 major water conservancy projects from 2020 to 2022, and proposed to step up efforts to promote construction and promote the expansion of effective investment. At the same time, it makes clear the work policy for the next step: the construction of major water conservancy projects can only be strengthened, not weakened.

 

On July 13th, the policy briefing of the State Council revealed that China plans to promote the construction of 150 major water conservancy projects from 2020 to 2022, with a total investment of about 1.29 trillion yuan and direct and indirect investment of about 6.6 trillion yuan.

 

Since the beginning of the rainy season this year, rainstorm and flood disasters have occurred frequently in China. According to the statistics of the Emergency Management Department, since July, floods have occurred in 336 rivers in China above the warning water level, of which 115 rivers have exceeded the guaranteed water level and 38 have exceeded the historical water level. Major flood situations such as the Yangtze River Basin, the Yellow River Basin and the Huaihe River Basin follow one after another, and the flood control situation is complex and grim, highlighting the great significance of the construction of water conservancy projects.

The state attaches great importance to the construction of major water conservancy projects. according to statistics, the total investment of 150 major water conservancy projects is about 1.29 trillion yuan, of which five projects exceed 50 billion yuan, four projects range from 30 billion yuan to 50 billion yuan, and 18 projects range from 10 billion yuan to 30 billion yuan. It can lead to direct and indirect investment of 6.6 trillion yuan and create an average of 800000 jobs a year. At present, the National Development and Reform Commission has allocated a cumulative investment of 52.8 billion yuan in the central budget for major water conservancy projects in 2020 to support various localities in speeding up project construction.

Focusing on the promotion of water conservancy construction projects is naturally a great benefit to the steel industry and the steel market. The construction of water conservancy projects will certainly stimulate the demand for steel and create a huge market.

There are three main types of steel for water conservancy construction:

According to the estimates of relevant experts, in the comprehensive water conservancy project, the investment in steel bar accounts for 3% of the total investment, and the investment in equipment, including sluices, water pumps, hoists and power generation equipment, accounts for 10% of the total investment. 12%. China's three Gorges Project is famous all over the world. Its dam consists of 26.89 million tons of concrete plus 290000 tons of steel bars and 255000 tons of other steel. The total amount of steel used for the dam has reached 500000 tons.

According to the investment of 1.29 trillion yuan in 150 water conservancy projects in China from 2020 to 2022, according to the investment of 3% steel bar, the investment scale of steel bar of 387 trillion yuan will be realized in the next two years, taking into account the amount of steel such as wire, plate, pipe and so on. There is no doubt that it will create a huge steel consumption market.

In addition, the demand for indirect steel in water conservancy construction should not be underestimated. A large number of construction machinery are needed in the process of water conservancy construction, including hoists, excavators, loaders, and so on. It is understood that in the national irrigation and water conservancy infrastructure construction in winter and spring in 2014-15, a total of 316 million machines were deployed to complete 11.5 billion cubic meters of earthwork and 3.716 billion working days for farmers. Its great demand will promote the development of machinery and equipment industry and enhance the demand for steel in the machinery industry. The construction of water conservancy projects is closely related to hydropower projects, and the hydropower industry also needs to consume all kinds of steel, such as rebar, profile, metal structure steel, pressure pipeline steel and so on.

China attaches great importance to the construction of water conservancy projects, which will bring long-term and stable demand to the steel industry in the next few years. The big project of "rigid demand" is worth looking forward to.

For queries, please contact Frank LIU at liuxiaolei@smm.cn

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