China's pipeline steel demand has a large growth space in 2021

From the perspective of demand, global steel demand in 2021 is expected to increase by 4.9% year-on-year to 1.833 billion tons, of which China's domestic steel demand in 2021 will increase by 1% year-on-year to 991 million tons.

In 2021, China's economy and investment in fixed assets will maintain a rapid growth, and the demand of construction, machinery, automobile, energy, household appliances, railway, container and other industries will still increase. It is estimated that China's total steel demand will increase slightly in 2021. The demand of pipeline steel is worth looking forward to.

After the official operation of the national pipeline network in October 2020, the relevant oil and gas pipeline construction projects have been accelerated. The main planned projects include the fourth and fifth west east gas pipeline, the new gas pipeline (Xinjiang coal to gas pipeline project) and the LNG (liquefied natural gas) pipeline. At the same time, the government will accelerate the construction of public health system and related facilities, as well as the construction of new urbanization such as flood control and drainage facilities and the transformation of old residential areas. It is estimated that the investment and construction of domestic pipeline market will be further increased in 2021, and the demand for pipeline steel will have a large growth space.