China's construction steel demand is expected to shrink further in December due to the suspension of ongoing projects, fewer new projects, and tactics from contractors to supply only their urgent needs.
A survey confirmed that for December, newly launched projects will drop to 508, or 78 per month, with 655 projects delaying launch, or 96 more per month, according to the report.
At the end of November, 14,487 projects nationwide were still under construction or the breakdown by region showed that the decline was partly due to pauses in North, Northeast and Northwest China during the cold winter months. Ongoing projects gained momentum with the improvement in their liquidity.
By the end of November, stocks of construction steel in ongoing projects are sufficient for 4.5 days of use, down 0.2 days per month or below the normal seven-day level, as the need for replenishment is almost zero despite the steel.
The last month of a calendar year is usually the period when Chinese banks collect their short or medium term loans, so liquidity between construction projects will be one of the determining factors for steel demand.
According to another survey, China's weekly apparent consumption of construction steel is estimated at 4.92 million tons, 7.9% higher than weekly, or about 20% monthly, but down 5.2% year-on-year, no slowdown until 2 December. was not felt.
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