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Xi Jinping's push to move away from property-led growth threatens demand for steel in China, the world's largest steel consumer, with direct negative implications for construction-related steel products and domestic mill volumes. The policy shift is likely to weigh on steel prices and margins and could ripple through related supply chains and emerging-market exporters tied to Chinese construction demand.

Analysis

Xi Jinping's push to move away from property-led growth threatens demand for steel in China, the world's largest steel consumer, with direct negative implications for construction-related steel products and domestic mill volumes. The policy shift is likely to weigh on steel prices and margins and could ripple through related supply chains and emerging-market exporters tied to Chinese construction demand.