The geniuses at the RBA have turned their eye to Chinese steel, and, as usual, the outcome is a disaster:
Weakness in the Chinese urban residential construction sector has persisted since 2021, and has significantly reduced the sector’s demand for steel. However, overall demand for steel has remained resilient due to recent growth in infrastructure and manufacturing investment. Investment growth in these sectors looks set to continue in the near term, but there is considerable uncertainty around the long-term outlook for such investment. This uncertainty means the outlook for urban residential investment remains a key risk to the outlook for Chinese steel demand.
Projections to 2050 indicate that demand for urban residential construction in China has likely peaked.