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.
Moreover, the stimulus is being targeted at the biggest conurbations, although first-tier cities like Beijing and Shanghai account for less than 3% of commercial housing sales, the research firm said.
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