In March this year, of 70 major Chinese cities surveyed, new house prices in first-tier cities rose by 0.2 percent month on month, compared to the stable trend seen in February, while decreasing by 2.2 percent year on year, maintaining the same declining pace compared to the year-on-year decrease in February this year, as announced by China's National Bureau of Statistics (NBS).
In China’s second-tier cities, prices of second-hand houses in March saw a year-on-year decline of 6.2 percent, with the pace of the decline remaining stable compared to that recorded in February, while down 0.2 percent month on month. In third-tier cities, second-hand house prices in February saw a year-on-year decrease of 6.4 percent, with the pace of the decline 0.1 percentage point faster compared to that recorded in February, while down 0.4 percent month on month.
The real estate industry is a key industry for steel demand. New house prices in first-tier cities decreased by 2.2 percent year on year in March, reflecting weak demand for steel, especially for steel bars, resulting in more steel bars being directed to the export market. In the first three months, China’s exports of steel bars totaled 4.23 million mt, up 2.7 percent year on year.
In March, new house prices in first-tier cities rose by 0.2 percent month on month. If a positive price trend continues in the second quarter this year, demand for rebar and wire rod will likely improve and long steel exports will likely decline.
