In the January-April period this year, China started new construction works on renovating 16,800 old urban neighborhoods, as announced by China’s Ministry of Housing and Urban-Rural Development (MOHURD). The figure is almost in line with the targeted levels, with up to 18,000 old urban neighborhoods expected to be renovated in the first four months of the year. The full target in 2024 for renovation is 54,000 old urban neighborhoods. Last year, 53,000 projects for the renovation of old urban residential communities were implemented.
Even though the renovation of old neighborhoods has already been named as one of the steel demand drivers this year, the weakening of the real estate market in general (and weakness in new construction) has been offsetting the positive effect, at least for now.