SteelOrbis Shanghai
From January to May, the urban fixed assets investment amounted RMB 2.5443 trillion ($318 billion), up 30.3 percent compared with the same period of last year.
Broken down into various industries, investment in coal mining and dressing increased 63.9 percent to RMB 31.6 billion ($4 billion), that in power industry increased 18.4 percent to RMB 212.8 billion ($26.6 billion), that in oil and gas exploration increased 8.3% to RMB 43.8 billion ($5.5 billion), that in railway transportation increased 93.8% to RMB 47.5 billion ($6 billion), that in non-metal minerals mining and processing increased 41.3 percent to RMB 53.1 billion ($6.6 billion), that in ferrous metals mining and processing increased 13.7 percent to RMB 85.5 billion ($10.7 billion), and that in non-ferrous metals mining and processing increased 34 percent to RMB 33.1 billion ($4.1 billion).
China's urban fixed assets investment had grown 29.6 percent in the first four months of 2006. Compared with the data of the first five months, the index shows a rapid increase trend. Chinese government has already noticed that and would take more powerful macro-economic measures to stop the fast increase of fixed assets investment, which may result in the slowdown of the increase rate of demand on steel products. Considering the rapid growth in steel
production, Chinese steel prices may experience a decline in the latter half of the year.