China's impact on steel and Base metal

The debate whether there is a soft or hard landing in China is raging on. But one thing is clear, the investment led expansion is slowing down. The two major engines for investments led growth are high speed rail and real estate. Both of them slowed recently. Real estate sales in major cities are down from 30 to 50%. The safety issues and short of capital has slowed high speed railway construction. According to official figures, 70% of the projects have stooped. The impact on base metal are negative. The impact on steel is the biggest, which extends to iron ore and coking coals.