Faster restart to China building projects after CNY
The survey constructed over February 7-10 across 12,099 construction projects in China showed that work on 27.3% had resumed as of the first week after CNY - a significantly larger proportion than the 17.5% restarting work over the same period last year, the data show. This year's CNY spanned January 31-February 6.
This year's result is doubly significant because last year in the first week following the CNY holiday, the rate of work resumption was already high, as many migrant workers were asked to avoid travelling home and to stay at their place of work for the celebration. This was aimed at curbing the spread of the COVID-19 virus after its resurgence in many parts of China around that time, as Mysteel Global reported.
"This year the resumption has been even faster, partly because some migrant workers returned to their job sites earlier - just in case they were required to spend time in quarantine," a survey respondent observed. "But the speed of construction activity restarting also relates to the need to accelerate certain infrastructure projects in response to the government's request," she added.
The resumption rate is predicted to increase further to 58.6% by February 17, according to the survey.
Resumption rate (%) |
YoY change (percentage points) |
|
Nationwide |
27.3 |
9.8 |
Northeast China |
0 |
- |
North China |
3.1 |
-16 |
East China |
17.2 |
-4 |
South China |
54.5 |
26 |
Central China |
27.8 |
15.2 |
Northwest China |
28.6 |
23.2 |
Northeast China |
14.9 |
5.2 |
Source: Mysteel
Region-wise, the resumption rate on construction projects in South China was the highest at 54.5%, up 26 percentage points compared with the first week after last CNY, but in North China, the rate was 16 percentage point lower on the same comparison, the numbers show. "That's mainly because building activity there (in North China) is disrupted due to restrictions associated with the Winter Olympics," according to the respondent.
The Winter Olympic Games are being held over February 4-20 in North China's Beijing, Yanqing and Zhangjiakou, and activities in and around the regions that generate dust or industrial pollution have been restricted in order to ensure that skies remain clear for the international event, as Mysteel Global reported.
However, although this year more construction contractors recommenced work earlier post-CNY than in other years, the pace of building after the restarts seems slower, survey respondent pointed out.
"Though more projects have started or restarted, the number of workers who've presented themselves for normal work is actually lower," she said.
The rate of workers returning to their work positions (as a percentage of the total workforce on the projects) was only 11.4%, which was lower than 14.2% as of the first week after last year's CNY, the survey suggested.
"Among the surveyed projects, property projects are still suffering from financial difficulties, which is one of the key reasons affecting progress on these projects," the survey source remarked.
"The speed of the projects is actually the key factor deciding the demand for construction commodities, such as steel and cement," she said.
A steel trader based in South China also observed the same phenomenon.
"Property projects are still dealing with financial constraints, which has led steel traders supplying such projects to be cautious. On the other hand, though, funding for infrastructure projects is now comparatively easier to obtain, thanks to Beijing's order to accelerate the issuance of government bonds," he noted.
Written by Olivia Zhang, zhangwd@mysteel.com
Edited by Zhenqi Yang, yangzhenqi@mysteel.com
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