China's property sales to strengthen in H2 supporting steel demand

摘要

China's residential property market is likely to rebound strongly in the second half of this year, supporting steel demand, though some cities may tighten the lending criteria in a bid to avoid a price bubble, according to a report by S&P Global Ratings on Aug. 12. Property sales fell by 2.8% on the year over January-June due to the coronavirus impacting activity, but full year sales could recover to a 5% increase. This contrasts with the previous guidance that expected sales to be flat or below last year in 2020, Ratings China Property report stated. The outlook bodes well for overall steel demand in China in the final quarter of this year as strong home sales provide developers with the financial means to build new properties.