Focus on Demand: China remains a concern

摘要

The pace of Chinese construction sector demandgrowth has fallen significantly in 2015, as constructionindicators show slowing activity. Within theautomotive sector, rising intensity of use is insufficientto compensate for weakening sales and productionlevels resulting from economic uncertainty in thecountry. In June, car sales as reported by the ChinaAssociation of Automobile Manufacturers fell 3.4% yo-y. The air conditioner market has also experiencedsluggish growth, resulting in lacklustre fin stockdemand. Despite air conditioner production increasingby an encouraging 4.6% y-o-y in June, demand for finstock is anticipated to be flat at best on last year'slevels in 2015. These factors are putting furtherpressure on Chinese fabricators, as they fight formarket share.