On March 21, Shanghai-based E-House Real Estate Research Institute issued a report, announcing that the inventory level in the real estate market in 100 cities in China has seen its first year-on-year decline in the past 51 months in March this year. E-House stated that it believes that the period when real estate was facing maximum pressure is now past, and that it expects a better performance for the industry in the future.
The decline in real estate inventories in China is among the important signs of an expected improvement in the market this year as the government has stepped its efforts to increase the affordability of property purchases and has increased support to cash-strapped developers.
The anticipated improvement in the real estate industry will bolster the demand for steel this year.