Chinese government recently announced a plan to spend a total of 4 trillion yuan over the next two year to stimulate the Chinese economy to grow 1% every year, the gist of which is as follows:

It will pour 280 billion yuan into the construction of new farmhouses, 370 billion yuan into an improvement of the foundation facilities for farmers’ livelihood, 1.8 trillion won into the construction of electricity supply networks for railroads, ordinary roads, airports, cities and provincial areas, 40 billion yuan into fields of medical treatment, education and culture, 350 billion yuan into the preservation of ecological environment and 1 trillion yuan into the rehabilitation of earthquake-hit areas.

In this connection, an analyst at Mysteel forecast the China’s consumption of steel products will increase by 1-1.5 trillion tons.

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