At a recent press conference, Xi Xiangdong, executive deputy secretary general of the China Iron and Steel Association (CISA), stated that in the first four months of this year China's seventy-seven large and medium sized steel enterprises recorded an average profit margin of 3.6 percent.
As regards the Chinese government's new policy to control domestic real estate market, Mr. Xi said the policy would not have any significant influence on the domestic steel industry.
According to Mr. Xi, new housing starts in the first four months of this year indicated an increase of 122 percent year on year. In addition, the Chinese government will be stepping up efforts for the construction of affordable housing projects.
The CISA official also said that for the coming period steel demand is expected to rebound in the domestic market. He added that steel prices would not decline much further.