China’s plans to build infrastructure and houses will increase demand for ships hauling dry-bulk raw materials, according to Arctic Securities ASA.
The Oslo-based investment bank will probably raise its estimates for demand growth because of announcements at the National People’s Congress, analyst Erik Nikolai Stavseth said in an e-mailed report today.
The world’s most populous country will build 100 port berths, 80,000 kilometers (49,720 miles) of highways and 5,200 kilometers of railroads in 2013, the National Development and Reform Commission said. The authority also said China will boost supply of midsize and small houses, which Stavseth said is important for steel demand.
“The data is staggering in size and clearly a positive in supporting demand for steel and ultimately dry-bulk commodities,” Stavseth said in the report. “We find China’s comments today supportive of decent dry-bulk demand growth to the extent that we will revisit and likely upgrade our demand expectations in the next dry-bulk update.”
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