With China significantly ahead of the curve in terms of economic recovery after Covid-19, its ambitious infrastructure investments have been under the spotlight because of the enormous boost to domestic consumption - especially demand for steel products.
During Fastmarkets' International Ferro-alloys Virtual Conference on November 9, Una Yin, a steel market analyst in the Fastmarkets Research team, told delegates about the team's key findings and insights into China's infrastructure spending.
Slower-than-expected traditional infrastructure investment in 2020
Growth in China's 2020 investment in traditional infrastructure projects - which are mostly those related to transportation, water and electricity supplies - is estimated to be slower than market expectations due to a lack of funds and a shortage of good projects so far in the third quarter, Yin told delegates.
Funds from two out of three key traditional infrastructure investment sources - namely, budgetary funds and self-raised funds - have been decreasing it seems, although funds from domestic loans have continued to support traditional infrastructure spending, Yin said.
Project delays caused by natural disasters, including the extreme heavy rains across southern and western China in June and July, were cited as...