In March this year, of the 70 major cities in China surveyed, new home prices in first-tier cities rose 0.2 percent month-on-month, compared with the stable trend observed in February, while declining 2.2 percent year-on-year, maintaining the same rate of decline compared with the year-on-year decline in February this year, China's National Bureau of Statistics (NBS) announced.
In China's second-tier cities, second-hand house prices fell 6.2 percent year-on-year in March, with the rate of decline remaining stable compared with the rate recorded in February, although down 0.2 percent month-on-month. In third-tier cities, used home prices fell 6.4 percent year-over-year in February, with the rate of decline 0.1 percentage point faster than February and down 0.4 percent month-on-month.
The real estate industry is a key industry for steel demand. New home prices in first-tier cities fell 2.2 percent year-on-year in March, reflecting weak demand for steel, especially steel rods, resulting in more steel rods being diverted to the export market. In the first three months, China's steel bar exports totaled 4.23 million tons, up 2.7 percent year-on-year.
New home prices in first-tier cities rose 0.2 percent month-on-month in March. If the positive price trend continues in the second quarter of this year, demand for rebar and wire rod is likely to improve and long steel exports are likely to decline.
