What about 2020 for the steel pipe industry

Counter-cyclical adjustment continues to exert force.
Domestic counter-cyclical adjustment policies played a bigger role in 2019, especially in infrastructure, while steel pipe suppliers performed well. In the context of the global economic slowdown, the domestic economy will face huge downward pressure in 2020. At the same time, 2020 is the year to complete the building of a moderately prosperous society in all respects and the end of the 13th five-year plan. Counter-cyclical adjustment policies will continue to be implemented, and multiple RRR cuts or interest rate cuts are likely. Currently, it is widely expected that the RRR will be cut for 2-3 times in 2020. Another concern is that if the current China-US trade relationship tends to moderate, the counter-cyclical adjustment policy may not be particularly strong, and then the domestic inflation and downward pressure coexist, the country will consider the issue of balance, otherwise it may be stronger than in 2019, the above is monetary policy.

In terms of boosting domestic demand of rectangular hollow section and boosting consumption, it is reported that by the end of the year, infrastructure projects approved by the NDRC had exceeded 1.5 trillion yuan, and investment in “new infrastructure” will be accelerated next year. Since December, the national development and reform commission (NDRC) has approved a number of infrastructure projects with over 270 billion yuan in capital, mostly in the areas of rail transit, high-speed rail and airports. In general, since the beginning of this year, the NDRC has approved nearly 60 infrastructure projects, involving a total amount of more than 1.5 trillion yuan. Only with capital first, can the projects of China steel tube factories run smoothly, which will play a crucial role in the rapid implementation of infrastructure projects next year.

On the other hand, in 2020, the transportation industry will invest 800 billion yuan in railways, 1.8 trillion yuan in roads and waterways, and 90 billion yuan in civil aviation. At the same time, on the basis of making roads accessible to all towns and villages with the conditions in 2019, by 2020 all towns and villages with the conditions will be able to connect passenger cars, increase the volume of container and China hollow section tube by more than 12%, and reach 98% of express delivery outlets in towns and townships. In 2020, we will strengthen strategic infrastructure construction, promote the network of infrastructure of , and speed up the strengthening of weak links, which will have a more direct role in driving steel.