“You wouldn’t believe the amount of construction going on over there,” said our colleaugue upon his return from China. He’s the director of our still yet-to-be titled documentary and had travelled to the Far East to gather some fodder for the film.
Last year, Chinese steelmakers had the fastest growth rate among all Asian steel producers – producing nearly 20% more steel than the year before.
“Everywhere you looked, there were construction cranes – they literally crowded every block,” continued Pat.
What are they building? Skyscrapers. Our own Christopher Hancock has been closely watching the Chinese market for most of the decade, and believes that the Chinese construction boom is nowhere near over. By 2011, Christopher asserts, China will add another 1,000 skyscrapers to the skyline in Shanghai – and will double its demand for steel by 2031.
Think about it this way: 60,000 tons of steel was used to build the Empire State Building – imagine how much these new, bigger skyscrapers will use.
In fact, seven out of the world’s ten tallest skyscrapers have appeared in Asia…and they are still building like crazy…and demanding massive amounts of steel to make it happen.
The Asian love affair with skyscrapers – and steel – is about to really begin, which means enormous profits for the entire steel industry.
for The Daily Reckoning Australia