In August. The recent decline in production is likely due to Beijing's plans to reduce "excess" steel production in 2025 (to 5% of China's supply in 2024, according to market estimates) and strictly ban new capacity in 2025-2026. Although, according to official data, steel shipments to China decreased by 3% year-on-year in the first 9 months of 2025, net exports increased by 10% year-on-year during this period, which put pressure on global steel prices.
Real estate sales in China fell 12% year-on-year in September after an 11% decline in August and were 47% lower than in the same month in 2021. At the same time, the volume of construction of new residential areas (https://www.stats.gov.cn/sj/zxfb/202509/t20250915_1961183.html ) decreased by another 15% year-on-year in September (68% lower than in 2021). Mortgage loans to individuals also decreased by 11% year-on-year in September (61% lower than in 2021), while construction volumes of completed properties were generally in line with last year's figures.
