SHANGHAI, Nov. 28 (SMM) -- Chinese Vice Premier Li Keqiang made the remarks during a fact-finding tour to Langfang City, Hebei Province, in which he checked the implementation of the government's affordable housing policies and progress made in Langfang. He pointed out that China's measures to control the property market have achieved some results but are still at a critical stage, and stressed that the government should stick to its tightening measures over the property market and consolidate the regulative results it has achieved.
Steelease believes China's measures to curb property prices in 2011 have exerted a huge negative impact on steel demand. The slipping new construction areas erode demand for construction steel, and the bearish property sector also negatively affected several major steel downstream industries including machinery, home appliance and hardware industries. China will continue to build affordable housing in 2012, but the number of affordable housing will be lower than 2011. If China continues to curb property prices in 2012, the development of commercial real estate will be greatly constrained, which will in turn negatively affect steel demand.