According to the latest Mysteel report, approximately 73% of the 14,890 construction projects across China are in progress, including real estate and infrastructure. Construction is by far the largest consumer of steel products in China, accounting for more than 60% of the country's total steel consumption.
In terms of regions, the Northwest and North China, where most of the country's steel is produced, had more than 90% of construction projects on hold, the study found. In Central and Southwest China, about 80% of projects were stopped, while in South China the figure was 71%, and in East China 59%.
This year, Chinese New Year (CNY) officially covers the period from January 31st to February 6th, but construction contractors generally observe longer holidays so that migrant workers can spend more time with their families during the holidays. Mysteel Global notes that for most migrant workers, CNY is the only opportunity for family reunions each year
In terms of resuming projects after the CNY holiday, a Mysteel survey showed that about 35% of construction companies surveyed plan to resume work on their projects by mid-February, and about 31% by the end of February. The rest said they would not resume construction work until March, or said no timeline had yet been set.
Normally in China, construction work resumes after the Lantern Festival, which falls on the 15th of the first lunar month, or February 15 this year. However, many factors are creating uncertainty about the resumption of construction projects next spring, according to market sources.
"In Northern China, the resumption of work on many construction projects may be delayed due to a number of major events in the region, including the Winter Olympics (in February) and the Paralympic Games (in March)," said a Shanghai-based analyst.
The Winter Olympic and Paralympic Games will be held in and around Beijing from February 4 to 20 and March 4 to March 13, respectively, while the so-called "Two Sessions" - the country's main annual political meetings - will be held on March 4 and 3. 5 respectively in Beijing, according to Mysteel Global.
