Thursday, November 3, 2011

Steel dream affordable housing

Ice city Harbin winter concentration, is located near Xiangfang District brewery in Dongba Orchard district just started piling 1# building, which is an affordable housing project 40 buildings to be constructed, but completed only 2 buildings of pile foundation engineering.
At this point from the Housing Department requires the end of November all affordable housing starts goals, similar talks days has only one month's time.
Dongba Orchard community contracting units of affordable housing project is Heilongjiang province new real estate development company. Local industry insiders said that this is a local company production strength of the Earth, its progress like this. However, Harbin more than more than 200 developers, the vast majority belong to the small and medium-sized developers, 60%~70% of them because of funding problems have had to shut down or delay duration.
Effects resulting from such extension of the duration has begun to spread to related industries, iron and steel industry is clearly perceived this coolness. Originally round of severe real estate regulation, protected items into pulling the downstream steel industries important engines of consumption but as protected national projects are halted or delayed worker, steel industry winter come early.
It is learned that, the Ministry for research reasons for collapse in steel prices and plans to take out a copy of the relevant reports submitted to the State Council.
Ministry concerned said, from top to bottom, we are very concerned about the rapidly changing steel market, now affordable housing is just one of many factors affecting steel prices. But the people also said that the current macroeconomic regulation and control should still not be relaxed.
Affordable housing "policy" lay-off
Investment and real estate company engineering Dept of Harbin city Wang Yanhai told Ming Pao said the financial strength of developers who want to drive the project forward, completed cities issued by the indicators of progress, but small and medium enterprises sell them houses, return to capital, not down, okay.
2011 annual affordable housing project in Harbin construction plans were 44,981 housing units built.
Harbin municipal Bureau of housing security Yu Zhihua said the Director of publicity, or small developers in Harbin, there is access to affordable housing projects. Harbin is the construction of affordable housing policy, for developers building distribution mode. Any developer to take, matching 2% ' affordable housing, cent of building public rental. Government concessions on land transfer payment.
But because housing construction of protection broke even, developers face regulation, financial stress problems, developers on development of Harbin commercial House's enthusiasm, well above building protected.
Is located in Nangang district HA-West area, by Heilongjiang St Kitts and nervis Albert real estate development limited its two a branch respectively development of one products new border and Brook West sur two a project only together of across, while took to, and while started, plans December end of while completed, but commercial housing Brook West sur December is about to delivered, currently has opened, sales upset each square 6,620 Yuan, and containing Shang hundred sets protection room task of one products new border is to drag Hou delivered time, is expected in next year in July or August to delivered.
Yu Zhihua said the Harbin requires developers to give priority to ensuring affordable housing, but also to market-oriented, it is very difficult. Some developers sell them commercial House, can't come back money to build affordable housing, or participate in the construction of affordable housing in the small and medium-sized real estate enterprises, some due to financial issues to idle or missed deadlines.
Assume one new construction tasks mentioned above, is a famous local builders Donghui construction group. Zhang Chunyu 26th, head of the project to this newspaper that the St Kitts and nervis Albert main sources of financing are loans, upfront capital chain out of the question, the duration is slow down, the project to be delayed more than six months of delivery.
This is protecting the true portrayal of Fang Yangong in Harbin. Shandong laiwu steel trade Liu Chunwen also found recently in laiwu many construction sites are down. He steels butt site customers more, many sites directly to him holding the steel. According to his estimates, about half of his lay-off in the customer site.
Liu Chunwen said some affordable housing projects, ground up, has just completed the infrastructure even started, but many did not aggressively construction, building and no high-volume needs to steel hour.
Ailing steel city
Harbin company supervision and supervision when Du Fusheng gave this newspaper a accounts, if only start, subsidized housing Foundation steel consumption is not very large. A common high-level Foundation works in steel consumption is about 20% per cent of the entire volume of construction steel.
From upper intermediate steel mills to traders to terminal building contractors and developers used is one vibrant industry chain, now face fracture of crisis. Mills had to reduce ex-factory prices of steel products, steel trade numerous yahuo, shipments and indemnity, financial stress, are in danger of death, terminal building contractors and developers of poor demand and even stop work and production.
Earlier this year, when the State Department announced the launch of mass affordable housing plan, which was once the major steel market good. CITIC building investment analyst Wang 喆 last year had predicted that national housing project for 2011 plan construction and supportability 10 million sets of, assuming end it all started, protected added 252 million square meters starts will yield around 12.6 million tons building steel demand. Most of which are threaded steel demand. Even 2011 housing starts slipped 14.7% affordable housing starts increase in the size can also make up for this shortfall.
But for the time being, as all over the "policy" suspension or delay, affordable housing is becoming a nightmare of steel price fluctuations.
In September, thread, wire, and other major construction steel is 10 Yuan, 20 Yuan per ton Yin fell, by October, the trend decline in has become hundred Yuan per ton. As of now, the national hot-rolling screw thread steel prices from over more than 5,000 yuan per ton has decreased by up to $ 4,000 mark. Just last week, domestic large-scale iron and steel enterprise customer meeting was convened in Ma steel, silicon steel product quote is from a high of nearly more than 8,000 yuan per ton fell to about $ 5,000.
Steel trading market of Shanghai means business special out of it. Starting from October, trading volume sharply. For market management Department Manager Yu Xiangwei,, has turned out to be busy all day, and now business as long as the morning can all be processed. He said: "it's never had it. ”
Domestic steel companies stopped production or maintenance behaviors is also increasing, according to the China United Steel network statistics, as of October 26, including 12, liuzhou iron and steel plant in October and late-arrangement of maintenance tasks, plate statistics there are 14 companies and repair, and stopped production.
Hebei and Tianjin West of iron and steel sales company Deputy Manager Zhao Yichen see is that many construction projects supporting the iron and steel companies already have a holiday, because there is no project.
National construction steel total steel consumption of about 50%, real estate construction steel and steel for the building of more than 60%. Steel and steel trade rely heavily on the commercial real estate can be seen. But for now, the chain has become fragile.
Zuo Tingkai worry recently. He runs the linyi Wan-Shun steel limited has now Yaku four hundred or five hundred tons of steel, which is a boon to small and medium steel dealers have been astronomical.
Tianjin Ze Dragon steel trading company of a Manager and on the cover. A few days before he feels the market should be the end. Purchase, and prices continue to fall, now up to the.
From the perspective of data, falling steel prices fell goes perfectly affordable housing of newly started projects per cent growth rate. Affordable housing starts in June, and July per cent, and in August rose to 86%, 98% to the end of August, of which there are 15 places starts exceeded the target. With the gradual increase capacity utilization, fall in steel prices trend is basically unavoidable.
According to the Housing Ministry had asked for, by the end of October all affordable housing construction project one-third project basically completed, project into the ground during construction of the one-third, one-third into Foundation phase of the project.
However, this newspaper learned from the housing Security Center, Qingdao, assessment of the progress made in the understanding of current national affordable housing, the main examination starts. Related staff, "said national affordable housing issued by key indicators, is starting up. As requested by the Ministry of housing, 10 million units of affordable housing as long as this year began before the end of November, did not refer to achieve build number. ”
On October 20, the face is pale and the steel city, CITIC building investment analyst Wang 喆 to this newspaper that the reality does not work very well. 4 May this year, around affordable housing starts also is not very high, according to affordable housing starts June started to rise, but puzzling is that demand has not followed suit. Had expected gold and nine silver ten has a little season, but did not appear. If a Foundation is started, the demand for steel is not too much of the pulling effect.
The Ministry survey report of the drafting
Steel prices continue to fall attracted the attention of macroeconomic regulation and control departments. Last week, the relevant departments of the Ministry and the national development and Reform Commission investigate successively visited China Steel Association. Of which, the Ministry's investigation focused on the steel industry itself, and research is focused on the macro economy and regulation of development and Reform Commission. It is learnt that the Ministry will come up on the basis of the findings in a report submitted to the State Council.
Executives want to figure out what causes falling steel prices. Ministry concerned said, the moment, subsidized housing may just be one of the factors affecting demand, you also need to analyse the impact of macro-control policy has brought to market.
CISA said regulation led to the real estate, new construction of commercial housing projects slumped, around the restriction also inhibits the purchase consumption, further lead to the real estate industry decline in consumer demand for steel. Construction of affordable housing projects, due to lack of local government power, pull for steel failed to reach expectations.
In addition, the tight monetary policies also led to most of the traders of steel short of money. Traders are an important link to the Terminal market of connected steel plant. It is reported that since June this year, acceptance in the domestic steel market as a proportion of the settlement had been rising until the end of October, 60% traders use money orders had been settled. Contraction of demand, depressed prices, coupled with the cash-strapped, leading steel trader in the chain link cracking again.
19th, head of laiwu iron and steel company of Shandong iron and steel group sales to this newspaper that the iron and steel, building materials industry as a whole the situation is not good now, price drop is large, sales, and looks abnormal. Laiwu steel present sales did not decline, but prices had to lower market fluctuation.
CISA who appears, the current steel price sharply downward, not only the impact on demand, is the result of national macro-control policies. "Macro control's goal is to speed down, house prices down, but did not expect this regulation results appearing so quickly, but also such a great". It is learnt that the initial estimate is that appear steel prices downward early next year, "now, regulation results are a bit more than expected", said CISA.
While on the other hand, entire steel market is too high expectations for affordable housing projects, real goals for national macro-control and is not well understood.
At present, relevant departments of the Ministry of analysis on the cause of the collapse in steel prices are still in research. However, the said report mainly to reflect the real reason for the market decline, macro policy still does not change in the near future. CISA also believe that the current Government regulation of real estate, and controlling inflation, have not met expectations.