Downstream from the steel industry, we can see whether the industry demand is increasing. According to baichuan Yingfu data, China’s downstream steel consumption structure, construction industry steel accounted for about 49%, ranked the first; Machinery followed, accounting for about 17 per cent. In addition, the automotive industry, energy industry, shipbuilding industry, household appliances industry accounted for a relatively high proportion of steel.

In terms of infrastructure, which accounts for the largest proportion, a series of policies are indicating that the bottom of the real estate policy has emerged, which has a great support for steel demand.

Not long ago, commercial housing pre-sale funds supervision measures, rectifying the early pre-sale funds management is too strict practice, real estate capital limit relaxation;

Since the beginning of this year, nearly 60 cities across The country have released various policies to boost the real estate market, including easing restrictions on home purchases and loans, easing the down payment ratio, lowering mortgage interest rates, lowering the down payment ratio of provident fund, and granting housing subsidies.

Second, from the manufacturing sector, which accounts for the second largest share. Profits of industrial enterprises are generally a leading indicator of manufacturing investment, and the epidemic will drag down profits of industrial enterprises in 2020. After the epidemic is effectively controlled, the rapid recovery of manufacturing profits will support the demand for steel used in manufacturing