For the period from January to July of this year, the total volume of real estate investments in China amounted to 4,3009 trillion yuan (0.63 trillion dollars), which is 19.2% less compared to the same period last year, which is 1.2 percentage points higher than the decrease recorded in the period from January to June, as reported by the National Bureau of Statistics of China (NBS)).
During the specified period, sales of new commercial real estate in China totaled 450.21 million m2, which is 11.8% less than in the same period last year, which is 0.2 percentage points faster than the decrease recorded in the first six months.
In the first seven months, the total area occupied by construction in China decreased by 12.7% year-on-year, which is 0.2 percentage points more than the decrease recorded in the first six months.
The new area occupied by construction in China, which is directly related to steel consumption in this segment, decreased by 24 percent year-on-year, which is higher than the 23.4 percent year-on-year decline seen in the first six months of this year. This indicates a deterioration of the situation in July, when 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% in 2025, down nine percentage points from 58% in 2020. The rate of decline in steel usage in the construction segment was particularly high last year, when it decreased by 13%. 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.
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