China’s construction steel demand is expected to be subdued through the end of 2023 because of a weak property industry and constrained infrastructure sector growth in the wake of some local government debt problems, industry sources said Aug. 24.
Domestic excavator sales, a crucial indicator that shows upcoming construction activity, were likely to reach 5,300 units in August, up 3.7% from July but down 41.7% on the year, according to an estimate by China’s Construction Machinery and Equipment. Domestic excavator sales over January-August were seen tumbling 43.9% on the year to 61,443 units.
Lower excavator sales indicated that weakness in the construction sector and its steel demand could persist in the foreseeable future, industry sources said.
China’s property home sales, a major channel to fund new projects, were likely to continue in a downtrend in August, industry sources said, after National Bureau of Statistics data showed July home sales declining 46% month on month and 24% year on year.
According to China Index Academy data, Chinese home sales in 50 major cities over the first two weeks of August fell 16.2% on the month and 29.3% on the year.
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