The United States on September 11, the Wall Street journal reported that the United States on September 11, the Wall Street journal reported that there are signs that Chinas demand for iron and steel and other building materials and equipment, a further sign of Chinas economy is warming, but is largely affected by investment and heavy industry to restore growth.Reported, said Chinas economic rise over the last year, the demand of the construction and highway construction materials. However, after a downturn in the first half of, Chinas steel prices rebound since late June, cement and construction machinery sales also increased. Meanwhile, some other signs are that the Chinese economy is bottoming out.
The Wall Street journal, says economic activity in the warming of the strengthened peoples confidence in Chinas short-term growth prospects, but also raises worries about the economy will rely more on capital spending. The whole construction industry is showing signs of the sale and the price picks up. Cement prices rebounded since June. In addition, although due to the high temperature in summer is often the construction season, but 7, 8 two months of the cement sales remained strong. Construction equipment industry is also showing signs of two years out of landslide.
For steel mills profit rebound, however, market participants said that excess capacity and debt issues will continue for many steel mills of the balance sheet. Report said, Chinas largest private steel mills shagang group, a senior executive said, for fear of losing market share or to suspend lending bank, many steel companies even difficult to production, therefore, although the steel market conditions improve, but steel mills profit margins are still low.