The Chinese capital Beijing’s successful bid to host the 2022 Winter Olympic Games is expected to provide a boost for China’s steel industry, as reported by China Securities Journal. Market insiders consider that preparations for the 2022 Winter Olympics will provide big opportunities for the Chinese steel industry, driving a recovery in China’s domestic steel market over the next seven years, based on the experience of holding the 2008 Beijing Olympic Games.
In the seven years before the 2008 Olympics, China’s investments in infrastructure in preparation for the Olympics amounted to RMB 280 billion. In the given period, the average annual demand for construction steel created by preparations for the 2008 Olympics totaled 85 million mt.
It is expected that the 2022 Winter Olympics will result in indirect demand for 55 million mt of construction steel each year leading up to the games. In particular, annual demand for steel for housing construction will amount to 44 million mt, while annual demand for steel for infrastructure construction is expected to total 11 million mt.