China has recently introduced several macroeconomic stimulus policies, significantly boosting market confidence and steel demand. Key measures include the acceleration of a CNY 1 trillion additional government bond issuance project, issuance of ultra-long-term government bonds, reduction of down payment ratios and mortgage interest rates, and trade-in programs.

The National Development and Reform Commission (NDRC) reported that currently, 15,000 out of 21,000 projects have started, with an operational rate of 72%. The remaining projects aim to commence by the end of June, indicating an acceleration of about 4,000 projects within a month, boosting demand.

Moreover, the NDRC is preparing to issue the first batch of ultra-long-term special government bond projects. These bonds are set to finance major projects that can begin immediately once funds are available, expediting project implementation.

In the trade-in policy, 27 provinces and cities have issued plans to promote equipment updates and consumer goods trade-ins. Companies have announced over CNY 15 billion in subsidies, with e-commerce platforms investing over CNY 10 billion in promotions, further boosting demand.

Real estate stimulus policies have also been launched, including the cancellation of purchase restrictions and adjustments to loan interest rates and down payment ratios. These measures have led to increased real estate sales and market sentiment in some cities. While immediate boosts to steel demand are limited to guaranteed housing and key projects, ongoing policy effects could alleviate the real estate sector's drag on steel demand.

Overall, with these vigorous national policies and funding, the second half of the year may see a surge in construction activity and steel demand.