China’s Housing Measures Fall Short of Stimulating Steel Demand
- Mysteel says home-buying focus will take time to affect market
- Steelmakers cut production in late August to seven-month low
This article is for subscribers only.
China’s measures to arrest its housing crisis are no panacea for the steel markets that rely on real estate for demand.
While property accounts for almost 40% of Chinese steel consumption, the government’s focus on reviving home buying by cutting interest rates and loosening mortgage rules will take time to translate into the new housing starts that use the most steel, according to a note from Mysteel.