"Building materials to the countryside" is ready for steel cement to benefit

In response to recent media reports that China will implement the policy of “building materials to the countryside”, Chang Xiaocun, director of the Department of Market Construction of the Ministry of Commerce, said on the 29th that “building materials to the countryside” is a new growth point for rural consumption, because the improvement of rural housing and the renovation of dangerous houses all require A large amount of building materials has huge room for stimulating consumption.

Stimulated by the concept of “building materials to the countryside”, some of the shares in the building materials sector have been reflected recently. However, in fact, the current "building materials to the countryside" has not really entered the operational phase. According to reports, the relevant leading department has not yet been determined, and the subsidy products and the margin are still under investigation.

Although the actual benefits of the relevant listed companies have yet to be announced, it is expected that "building materials to the countryside" will become another important measure to boost the rural consumer market after "bringing home appliances to the countryside".

“Now it is not a question of whether or not to go to the countryside, but how to determine the division of labor to promote the issue. The next step will be to identify the lead department.” Related sources said, and may first select some areas as a pilot implementation.

According to an authoritative source, according to the investigation, the specific subsidy products mainly include steel and cement used in rural housing, and do not include products such as brick and ash sand that can be easily obtained from the local area. “Steel and cement are the main products used for building houses, and they are also the most demanding. In general, building materials to the countryside will be difficult to advance afterwards.” The above sources said.

Determined by the nature of the product, related sources said that this move "is bigger than the pull of home appliances to the countryside." After the urban housing is hot, rural areas have also entered a new round of building housing booms. At present, the average self-construction housing in rural areas is around RMB 100,000, which means that subsidies of RMB 5,000 to RMB 7,000 will be sufficient to mobilize the enthusiasm of farmers.

Chang Xiaocun introduced that in 2009 China's rural consumption increased by 15.7%, exceeding the city for the first time since 1986. This has benefited from the increase in farmers' income, and on the other hand benefited from a series of stimulating consumer policies.

Last year, rural consumer hotspots were prominent, and durable consumer goods in rural areas showed explosive growth. Computers, air conditioners, cameras, refrigerators, and mobile phones have become consumer hot spots. According to relevant sources, “Building materials to the countryside” has a strong stimulatory effect on improving the self-use housing for the farmers, and improvement in living conditions will also stimulate consumption of home appliances and textiles, which is consistent with the state’s policy of encouraging consumption.

According to reports, once the lead department is finalized, the relevant rules are expected to be introduced soon.