In China the government trod the narrow path of economic readjustment. On the one hand, the never-ending stimulus continues. A mega tax cut will start in July benefiting consumers and industries alike and an urban hub will be built almost from scratch to ease the demographic pressure on the Beijing area. On the other hand, concerns of an overheating property market remain. Measures introduced in Q1 to cool the market have not worked and construction activity continues unabated. Rebar prices have therefore done well, they surpassed European prices in February and March, but they have started to falter in April. A fall is inevitably, high stock, falling costs and stubbornly high crude steel production will promote it. Endless stimuli to the economy will, however, soften the fall.