Industrial output in regions affected by pollution-control measures has fallen sharply, but excess capacity elsewhere means that companies in other provinces have largely picked up the slack.

Sharp falls in copper and iron ore prices in recent days are a reflection of China’s slowing demand for commodities, but do not indicate a collapse in demand or an imminent hard landing for the economy.

Ahead of the publication of National Bureau of Statistics (NBS) data for the first two months of the year on March 13, third-party data for the period monitored by China Confidential points to strong industrial activity, suggesting that official industrial production data in January and February may surprise to the upside. Falling home sales and weaker credit growth, however, highlight the fact that any recovery is likely to be short-lived.

2014 looks like it will be a challenging year for the capital intensive industries sector.

Steel mills are facing increasing pressure to fall in line with environmental regulations.

Our survey of power plants, steel mills and pollution treatment companies shows that Beijing’s smog-busting agenda is for real.

Local commentators debate how sustainable the improvement in profits at China’s major steel mills is. 

Although falling steel prices have raised questions over the durability of China’s economic recovery, the demand outlook for the steel industry – and the key real estate sector – remains more positive than negative.