Supply and demand contradiction of steel shock bottoms
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On the one hand, the real estate investment growth continued downward trend, the railway infrastructure investment slow recovery in steel end demand massive release is still difficult moment. In July 2012, the real estate development and investment growth rate down from 1.2 to 15.4%, dropped by more than half compared with the record high. July monthly real estate development and investment and the breakdown of data are significantly worse than in June, due to weather factors, the year-over-year decline in the larger of the new construction area and construction area, the chain fell 40% in the completion of the area qoq also 10% more than the end of the ring of the last two months than the trend of recovery, and the foreseeable future housing supply will tend to fall. At the same time, from January to July, the land acquisition area of 189.82 million square meters, a decrease of 24.3% year-on-year decline continued to expand, developers get enthusiastic decline also slowed down the pace of expansion.
On the other hand, the July housing sales data significantly better than last year, the end of a single month since the beginning of the year, sales are not as good as last year, the sales ring than the drop in front of two years over the same period compared to significantly narrowed seen this year, housing sales have improved rigid demand is still gradual release. We believe that the regulatory policies continue to raise the probability is low, perhaps will continue to implement the previous policy, and increase the accountability of local governments as the main means. Just need to release housing sales is getting better or down the space will be limited to real estate investment, real estate development and investment growth remained low of about 15% of the judgments throughout the year. Railway investment by the end of July, the Ministry of Railways to adjust the beginning of the railway infrastructure investment plan, and adjust the amount to 448.3 billion yuan, the third investment growth in the fourth quarter to be faster than the first half of the year. However, due to the short-term funding is not yet in place, the slow progress of the project, the more limited role in boosting demand for steel.