But the boom times in the steel sector are over. The paralysis that has struck China's mammoth construction industry is triggering a rare contraction in building activity across the country. UNCERTAIN OUTLOOKProperty-related sectors are the single biggest contributor to China's economy, accounting for 28% of GDP in 2021, down from a recent peak of 35% in 2016. A government industry consultancy forecast China's steel demand will slip 0.7% in 2022, following an expected 4.7% decline this year. "Property construction has been the engine of China's economy for over two decades now," said Frederic Neumann, Co-Head of Asian Economics Research at HSBC.

Source: The Star December 20, 2021 04:02 UTC