According to Numbers released by the China index academy, in June, domestic top ten city composite index (new) average from falling for seven months in a row after rising for the first time. In July, the central bank cut interest rates again, the real estate market of news came from time to time. Sobering, is closely related to real estate and construction market sectors, including steel, cement, ceramic, waterproof, since early 2012, prices have Yin down half the year. Among them, the price of steel, cement, has dropped to 2007 levels. The only difference is: in 2007, the building materials market, in the upward trend, this year is just the opposite. Prices with excess capacity at the same time, to building materials market in the second half of 2012, is still optimistic.
      Cold hong kong-listed steel makers were down seventy percent
      On July 11, wuhan steel market. The main rebar Ceng Laoban boring to play QQ games in shops. See reporters stepped forward to carry bag, very enthusiastic. Ask reporter in Europe after the talk of rebar, Ceng Laoban to big trouble.
       Ceng Laoban stores when sunrise cost less than 4000 yuan/ton. Six months ago, the price is 4400 yuan. She tells a reporter, about half a year to shipments dropped seventy percent than the same period in previous years, rebar prices is all the way down, "every time a slipped and 30 yuan, endless." In 2008 and 2009, building the mainstream rebar material price once reached 5500 yuan/ton. Because of concerns about cargo damage, Ceng Laoban six months has been dramatically reduced carried out.
      Nearby scaffolding pipe surnamed huang boss tells a reporter, scaffolding tube in his shop sales, this year has more than halved. As for prices, "last year, can sell for 5000 yuan/ton, now, less than 4000 yuan".
Not only is the steel used. Market the main plank of boss Li Hongfei told reporters, the whole market is very thin. In 2008 were about $10 million a year, but this year I'm afraid that's less than 3 million yuan. When manufacture highest sell for 6700 yuan/ton, the 4900 yuan/ton. Li boss straight sigh business difficult to do.
      On July 12, "my steel net", according to the steel index released sagging domestic steel spot market consolidation trend continues to increase. Following the 11 shagang rebar cut after 70-100 yuan/ton, volume 12, baosteel announced a cut in hot and cold rolled plate, electrical steel and other varieties in 200-500 yuan/ton. "Market pessimism become increasingly strong." Huang Guhao steel industry analyst said.
      Huang Guhao recalls, starting on September 13, 2011, the domestic steel market has experienced a wave of down, by the end of that year on October 21, a line of rebar market fell by 520 yuan per ton. After the year 2012, steel market has had a slight rebound, but since mid-april Yin fell all the way, yet interest rates. Current prices, steel market has return to prices in September 2007.
      "Is the key to both in different periods. The rise in steel market 2006-2006 period, while the current is falling cycles. We believe that the current price is not lowest."
       To make matters worse, at present in the high temperature, at the same time, the southern rainy weather is relatively frequent, influence project starts. In this case, the cold state of the steel market, hopeless temporarily relieved.
       Cement makers to exit the market reversal last November

     Located in the mountain, the pond was a cement dealer cluster. But careful residents found that the half-dozen dusty cement shop all day, recently are gone.
      In fact, even in a year or two ago, wuhan many alleys can find the shops on the distribution of cement. But now, cement outlets in the urban area has become very rare. As cement prices decline, small cement bosses is to quit.

      For 10 years in wuhan Cheng Xiaoke cement business, told reporters that since last November, the ordinary building cement on the market price has dropped more than 100 yuan per ton, from $400 in high return to less than 300 yuan. Ride the boss said that in many medium-sized cement plant, can take the arrival of the goods is 230 yuan/ton. Such a price, is below the market in 2007.

      Cement prices early warning.
      Materials association has just been released in May this year 1 - cement industry operation show that by the end of last year, the national cement production capacity is close to 2.9 billion tons, about 25% higher than the actual market demand. "Cement amount of overcapacity, is absolute, and global problems".
      Hubei cement association secretary-general Li Yanping lady tells a reporter, in hubei province is located along the Yangtze river area, only the first half of this year the new cement production capacity increased by 20 million tons. The hubei province cement production capacity but the scale of 80 million tons a year. "Huge cement market pressures, and cement storage period is only 3 months, once YaKu, or production, or bargain." Li Yanping said.It is worth noting that in April this year, the building materials industry of hubei province economic benefits over four consecutive years of growth since 2008, the first whole industry profits decline. Among them, the profit decline in the biggest industry is cement, growth rate of 42.76%.

      "Fragile" ceramic overcapacity already become the consensus in the industry
      Ceramic tile bottom of last year, now think of the personage inside course of study still feel chilling. At the end of last year, our province ceramics tangyan region is the most difficult times, only 50% of capacity in operation. Commonly used ceramic tile products such as 300 x 650 mm, the lowest price reached near 1.5 yuan/piece. "Ceramic price slightly rebounded in the first half of this year, but only 2007 times." Hubei province ceramics industry association deputy secretary-general Tan Youtang said in an interview.
      The reporter understands, since 2007, guangdong foshan and other places of ceramics industry began to accelerate the shift to hubei. QiChun, huangmei east and west by the program, the ceramic rapid development. At present, the province only ceramic tile production has reached 300 million square meters, ranking seventh in the country.
     However, compared with the cement, excess domestic ceramics industry. It is understood that in 1997 the national production of brick of pottery and porcelain, it is only 1.842 billion square meters, more than a dozen years the figure ran all the way, currently has more than 9 billion square meters, the result is: the per capita consumption of ceramic tile is as high as 5.91 square meters!
      Cement in the bargain, ceramic need more bargain. The formats of mainly small and medium-sized enterprise, starts to more time than the cement industry.
      Tan Youtang told reporters, in our province as an example, the current size (50 million yuan annual output value) more than about 30 enterprises, but the biggest enterprises but also billions of scale, the scale of the enterprise estimate hundreds. So small and scattered industry pattern, caused the serious homogeneity. Coupled with neighboring peers, ceramics in the province under the current market trend is especially vulnerable.
      It is important to note that the current prices of building materials industry cold snap, didn't seem to slow the pace of social capital to enter. According to the hubei province building materials industry association secretariat released the latest report, in the first half of this year, the building materials industry of hubei province investment is still maintained a rapid growth, the first five months year-on-year growth of 38.78%, more than the national building materials industry investment growth of 18% on average. It is understood that the important reasons is the coastal province of industry transfer is still in its peak period, especially stone material and ceramic industry investment projects in hubei province increased significantly.

      "Traditional building materials when the price hit bottom, there is still not determined. But the price downward force the market close down backward production facilities, improve the added value industries, promote industry restructuring, not necessarily a good thing." Hubei building materials association, an expert said.