During the specified period, new commercial real estate sold in China occupied a total area of 401.4 million m2, which is 11.6 percent less than last year, which is 0.8 percentage points faster than the decrease recorded in the first five months.
In the first six months, the total area occupied by construction activities in China decreased by 12.5 percent year-on-year, 0.2 percentage points faster than the decline recorded in the first five months.
The new area covered by construction activity in China, which is directly related to steel consumption in this segment, decreased by 23.4 percent year-on-year, faster than the 22.6 percent year-on-year decline seen in the first five months of the year. This signals a deterioration in the situation in June, as the real estate market as a steel-consuming industry continues to deteriorate.
According to the China Institute of Metallurgical Industry Planning and Research, the construction industry's share of total steel consumption in China fell to 49 percent in 2025, down nine percentage points from 58 percent in 2020. The rate of decline in steel usage in the construction segment was particularly strong last year, when it decreased by 13 percent. The forecast for 2026 suggests a continuation of the downward trend, but steel demand is expected to decline at a slower pace, by about 4.1 percent.
