<b>The housing market is cooling down! Will the PU industry be worse? </b>

The property market seems to be very exciting recently. It is not the stimulus of "Golden September and Silver October" to go up with all its strength, on the contrary, it is a stimulus that is easy to fall but difficult to rise. I saw sporadically some social news about home buyers' rights protection incidents, and angry home buyers wrote big-character posters at the door of the sales office in order to protect their rights and so on.

Trembling.

At present, these may be isolated phenomena, but the cooling of the property market is obvious to all.

It is reported that since August, the number of 100 cities whose monthly listed prices have dropped month-on-month has increased, from 19 in July to 47 in August. In terms of second-hand housing transaction volume, in the third quarter, Qingdao and Tianjin fell by more than 50%, Beijing fell by 35%, and Shenzhen fell by 42%. Among them, Qingdao's transaction volume has declined for six consecutive months, and Hangzhou's has declined for five consecutive months. The real estate market in some hot cities across the country has shown a steady decline in prices. Of the 76 residential projects launched in Wuhan in September, only 25 were sold out. According to data from the Wuhan Real Estate Development Enterprises Association, in September, 15,989 sets of new commercial housing were sold in Wuhan, a year-on-year decrease of 22.5% and a month-on-month decrease of 24.87%. In addition, in September, 320,000 square meters (2,567 sets) of commercial housing in the six districts of Ningbo City were sold, a decrease of 32% month-on-month and a year-on-year decrease of 48%; .

The Central Economic Work Conference at the end of 2016 put forward for the first time that "houses are for living in, not for speculation". Financing, homebuyer's credit and many other aspects.

As the government has stepped up regulation and control, the "Golden September and Silver October" in the real estate market will no longer be true. In addition, with the hype of several social news, it always gives people the impression that the real estate market is about to plummet.

But in fact, the property market is still relatively stable, and the transaction volume and prices in some cities are still in a state of steady and slight increase. Generally speaking, the real estate industry is the lifeline of my country's economy, and the government cannot allow it to grow wildly and fluctuate violently. The policies issued are all hoping that it can develop steadily and healthily.

To put it simply, our government's consistent approach: no matter what happens, stability is the top priority. But there is always some lingering shadow in everyone's heart.

In a blink of an eye, looking back at the "Golden September and Silver October" in our polyurethane industry this year, it has to be said that the slowdown of the real estate market has a certain reaction force on the polyurethane industry.

The pace of the real estate industry has slowed down, which has greatly affected the downstream industries of polyurethane: spraying, sheet metal, adhesives, pipes, furniture, etc. If the house is not built, it will affect the demand for hard foam; if the decoration is not done, it will affect the demand for elastomers; furniture and appliances are not bought new, which will also have a negative impact on hard foam and soft foam. The demand for such downstream products has cooled down due to the cooling of real estate, and the weakening demand for downstream products is bound to affect the upstream polyurethane industry.

Of course, from a macro perspective, the greater impact may be on the market mentality. The call for an inflection point in the property market is getting louder, the trade war is intensifying, coupled with the negative news that the United States has entered an interest rate hike cycle, etc., have had a negative impact on the entire market mentality. The public is dominated by pessimism, and they have no idea, so they hold their purses tightly. Consumption cannot be boosted, and the economic environment has entered a tightening cycle. What awaits us may be another cold winter.

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