Henan Business News reported that Chinese real estate market has showed signs of shrinking these days since the State Council put forward new policies and controls in the middle of April and many house developers have to ease their ongoing construction projects or delay new operation, which impacted domestic steel market especially for construction steel prices, presenting a decreasing trend by small ranges.

According to Henan Provincial Commerce Department, the major production materials market in local maintained an overall smooth operation in the first half of May this year with signs of price reduction in steel products and chemical fertilizers.

As per report, the averaged steel prices arrived at CNY 4,782 per tonne during the same periods, down by 0.49% from H2 of April. Now, it is the hot time for the construction sites. Meanwhile, the coal prices eyed an increase of 0.46%. Along with the approach of summer electricity season, thermal coal prices still have swelling spaces. And the whole steel industry would be held back for a long term in the future.

(Sourced from Henan Business News)