Loose fiscal and monetary policy environment, investment difference is bigger, directionality is strong.

In this year's fiscal policy, a proactive fiscal policy required is more effective, arranging the deficit in 1.62 trillion, 270 billion yuan more than last year. While the monetary policy should be moderate, special mentioned, according to the needs of economic development, it also can be slightly higher. In fact, through the reform of taxes and fees, reducing the small and medium-sized enterprise tax rate, energy taxes and fees reform, the central bank to cut interest rates and a series of policy, fiscal policy and monetary policy more tend to be more flexible, more efforts in the direction of structural adjustment. In the long run, it is beneficial to improve the steel industry chain financing environment, reduce the cost of capital, stimulate the demand for steel, which is clearly beneficial to the steel market.

From the point of this year's economic indicators, water conservancy investment and railway, two a total of 1.6 trillion plan, an increase of 730 billion over 870 billion of last year. Rail steel, hydro steel, rail locomotives, traction motor industrial steel demand relatively optimistic. In addition, 15.3% of investment in fixed assets, completion the same as that last year. CPI, M2 growth, import and export growth, defense spending growth target drop to a greater or lesser degree compared to 2014. Especially in 2014, a significant decline in export growth, export and consumption under the condition of economic power, it's necessary to keep a certain investment scale. Through the railways, highways, airports and other infrastructure projects, big economic zone planning, promote the construction of urbanization, with high-end equipment, new energy, mobile Internet, hydro power, nuclear power, skills, environmental protection industry, etc., release the potential demand, these are all favorable factors supporting steel supply and demand relations and steel market prices.

All in all, 2015 is the key year connecting past and present in economy and deepening the reform, and also the year to eliminate backward production capacity, iron and steel enterprises industry merger and reorganization, transformation and upgrading speeding up. In the new normal situation, there are obvious contradictions in the supply and demand of the steel market, heavy task and difficult transformation. So, don't expect steel prices sharply increase or decrease and also don't expect major policy positive stimulus. Hard skills, fully aware of the steel industry is facing the challenge of the new normal, to speed up the pace of innovation of seamless steel pipe and welded steel pipe, establish the competitive advantage through various ways.