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Chinese steel mills to encounter severe difficulties in H2- 14 Jun 10

As estimated China steel makers will encounter a lot of difficulties in the second half of this year impacted by the national strong controls on the domestic house market and the 90% iron ore price hikes in next quarter.

It‘s learned from Information Times that the declining house prices pushed steel prices to decrease by CNY 400 per tonne to CNY 500 per tonne which may touch the bottom for the second time in H2 this year since 2008.
Nowadays, Chinese real estate market has become a very important element which influences other industries from downstream and up stream. According to the statistics, China output of crude steel arrived at 568 million tonnes in 2009 with 40% flowing into house industry and construction projects.

Although steel prices started declining, market transaction volume still showed no big signs of changes, indicating that there were new house construction projects coming on stream.

Jun 14, 2010 08:19
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