Q345B seamless square tube production increased year-on-year. Data shows that China's real estate development investment grew by 20.3% year-on-year in the first half, with a growth rate of 0.1 percentage points faster than the quarter and 3.7 percentage points faster than the same period last year. After the implementation of new regulatory policies, second- and third-tier cities have shown differentiation in supply and demand structures. The market for seamless rectangular steel tubes is increasingly expecting "de-administrativization" in future real estate regulation. The manufacturing PMI has been in a contraction zone for three consecutive months, indicating a weakening manufacturing sector. Policy effects have been overused, and liquidity is scarce in the later stage, leading to significant fluctuations in the home appliance market.
It's reported that a new round of home appliance subsidy policies may be introduced in October. Following the announcement of the purchase restriction on small private cars in Beijing, Shanghai, and Guangzhou, there are rumors that 8 more cities will join the restriction list. The growth expectations for the automotive industry in the second half of the year are weakening due to the terminal pressure from financial strain and the negative impact of the government's purchase and driving restrictions. With national policy support, there is a renewed surge in railway construction. Previously, several high-speed railway lines had experienced slowing down, halting, or even shelving due to financial issues. The formal approval of the 1.5 trillion yuan in railway bonds undoubtedly signifies the official opening of the wave of railway infrastructure construction in the second half of the year.
