Morning Bites (part 2)

🏢 China is set to allocate CNY 300bn (USD 42bn) for the state purchase of unsold real estate, Bloomberg reports, citing PBoC Deputy Governor Tao Ling. The proposed aid volume, however, is substantially below estimates of CNY 1-2tn (USD 140-280bn). We note that the unsold housing stock currently stands at 3.6bn sqm, with an estimated cost of some CNY 7tn. Although the measure might add marginal support to local construction activity, it is in our view insufficient to resolve overstocking issues in China’s property sector, which we believe could become a negative factor for industrial metals prices in the short term

China accounts for 52% of global steel consumption, and for 57% and 61% of world Cu and Al demand, respectively

#steel #property  
https://metals-wire.com/sector/Steel