The future of Chinese constuction and steel

A few weeks ago in Liyang Star City, Kunming City, China, we saw this:

The blasting involved 15 high-rise residential buildings in the second phase of Liyang Star City, Kunming City, China. The project was unfinished due to a break in the developer’s capital chain. At the end of last year, the local government restarted the reconstruction of the project through the listing and transfer of the Yunnan Provincial Property Rights Exchange. Regarding one of the buildings that did not fall down during the blasting, some experts explained that this phenomenon is that the building body is not fully disintegrated and does not require a second blasting.

This is noteworthy for many reasons. Here are the top five:

  1. This is the future of property development in China as policymakers force capital discipline upon the craziest of sectors. Gluts and demoiltions.
  2. This is the future of Chinese steel production post iron ore. All of these buildings will be recycled as steel used to rebuild other stuff.

This is the end of the China boom for Australia as the greatest urbanisation in history winds down:

Iron ore $20 before 2030.

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Comments

    • Evergrande defaults. A state sanctioned default

      China’s Ministry of Housing and Urban-Rural Development has told major banks that Evergrande will not be able to make loan interest payments due September 20, Bloomberg News reported on Wednesday, citing people familiar with the matter.

  1. russbw the idioticMEMBER

    when MB makes the Big Short 2, that you tube flick can be the trailer. Burry can suffer in his jocks, Big Short 2 is gonna bigger and better, with not just eviction notices and forbearance and lots of suffering but awesomeness of city’s being imploded to the ground (obviously these things are not good). Who will star as the Burry like character? We can all take Prozac instead of popcorn.

  2. We need a “Shed Maker” nation building project to use up all that spare iron ore. Any free sqm of backyard will be covered wall to wall with Zinc or Colorbond, subsidized by the tax payer so we can keep Gina and Twiggy in the lifestyles to which they have become accustomed.

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