China new construction starts fall 23%, curbing steel price gains
This digest was compiled by AI from multiple sources — links to the originals are below.
Chinese developers began construction on 232.39 million square meters of property in the first half of 2026, down 23.4% from a year earlier, limiting growth in steel prices. Residential starts fell even more, at 24.1%, while property investment dropped 18% to 3.807 trillion yuan ($563 billion). The data pressured industrial metals even as Beijing maintains stimulus expectations.
China's Real Estate Slump
Chinese developers started 232.39 million square meters of new construction in H1 2026, a 23.4% decline year-on-year according to data released Tuesday. Residential construction dropped even more sharply, falling 24.1% to 169 million square meters. Total real estate development investment shrank 18% to 3.807 trillion yuan ($563 billion), signaling deepening weakness in the sector.
Industrial Metals Under Pressure
Steel prices remained stable but gains were capped by the decline in new construction, offsetting hopes for Chinese stimulus. Copper held above $6.10 per pound yet stayed under pressure from high interest rates and cautious demand. Iron ore neared a three-week low amid elevated inventories and record shipments from Australia.
Precious and Soft Commodities
Gold traded near $4,040 per ounce, heading for a fourth monthly decline as a strong dollar and high yields outweighed geopolitical safe-haven demand. Silver dropped over 20% in July to around $57, approaching seven-month lows. In agriculture, wheat rebounded to $6.70 per bushel on Black Sea port strikes; coffee saw volatility from Brazilian harvest delays, while sugar remained weak and orange juice led commodity losses.
What's Next
The Federal Reserve is expected to announce its rate decision later Wednesday, with markets pricing a 30% probability of a hike. Any hawkish surprise could further strengthen the dollar and prolong commodity weakness, though potential Beijing stimulus remains a key variable.
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China new construction starts fall 23%, curbing steel price gains
