BHP Billiton recently launched the second phase of the "B&R and Bulk Commodities" study, focusing on the steel industry. The report has selected about 400 core projects in its collection of more than 2,000 projects related to the "One Belt and One Road" initiative, with a total investment of US $ 1.3 trillion, which will generate a large amount of demand for building materials and equipment, either directly or indirectly to push steel demand. It’s expected to produce as much as 150 million tonnes of steel demand.
"One Belt and One Road" project is expected to generate as much as 150 million tons of steel demand growth, of which 80% will be used for building structures and reinforced concrete, the remaining 20% will be used for machinery manufacturing and other equipment production. If the average distribution to 10 years, equivalent to 15 million tons per year of steel demand increases, "One Belt and One Road" along the region average annual demand for steel 3% to 4%. This is a substantial increase, equivalent to double the growth rate of local steel demand since 2011.
Infrastructure projects are still focused, the core of the "One Belt and One Road" initiative is still infrastructure. BHP Billiton's research shows that electricity, railways, oil and gas pipelines and other transportation projects account for 70% of the total investment in "One Belt and One Road".