Analysis: China property construction to generate stable steel demand in 2020

摘要

Singapore—China’s State Council, the country’s top economic planning body, has made stabilizing land and housing prices the top priority for the property market in 2020, meaning that any fluctuation in property prices will not be an option for top policy makers. As a consequence, steel demand generated from the property and construction sector is expected to remain stable in 2020. Property construction accounts for about 35% of China's total steel consumption, and is likely to remain the core driver of steel demand in 2020. The central government in late 2019 declared that different cities will have different property policies for 2020 based on their own set of circumstances. The steel market interpreted the announcement as an implication that cities facing downward pressure in their property markets will have their home buying and financing restrictions loosened.