In the face of falling demand for construction materials, Matty Zhao of BofA Securities points to a downward trend for the cement and steel sectors. Construction of real estate projects has fallen by 60% since 2020, and demand for materials has fallen by 10-12%. The glass sector, which is heavily dependent on the property market, is particularly vulnerable. Failure to reduce supply could lead to asset devaluation and two consecutive years without profits, making shares in these sectors unattractive despite their low cost.
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