In May 2025, the People’s Bank of China implemented a series of monetary easing measures aimed at stimulating economic growth. These policies, including reductions in reserve requirement ratios and interest rates, are poised to have significant impacts on the construction materials sector, both domestically and globally.
Key Policy Measures:
Implications for Construction Materials:
These monetary policies are expected to revitalize the construction sector, leading to increased demand for building materials such as wallboards, ceilings, steel, and aluminum products.
- Reserve Requirement Ratio (RRR) Reduction: A 0.5 percentage point cut in the RRR is expected to inject approximately ¥1 trillion in long-term liquidity into the banking system.
- Interest Rate Cuts: The 7-day reverse repo rate was lowered from 1.5% to 1.4%, and the Loan Prime Rate (LPR) is anticipated to decrease by 0.1 percentage points, reducing borrowing costs across the economy.
- Structural Policy Tools Adjustment: Interest rates for various structural monetary policy tools, including targeted re-lending programs, were reduced by 0.25 percentage points, enhancing support for specific sectors.
- Housing Loan Interest Rate Reduction: The interest rate for five-year and above personal housing provident fund loans was cut from 2.85% to 2.6%, aiming to stimulate the housing market.
Market Trends and Data:
- Gypsum Board Market: The gypsum board market in China generated a revenue of USD 10,031.5 million in 2023 and is projected to reach USD 24,176.5 million by 2030, growing at a CAGR of 13.4% from 2024 to 2030. grandviewresearch.com
- Aluminum Production: China’s aluminum production reached 3,746,000 tons in March 2025, indicating a slight decrease from the previous quarter but maintaining a high output level.
- Construction Material Prices: The overall price of construction materials slightly decreased by 0.56% year-over-year, reflecting a stable pricing environment conducive to investment. media.arcadis.com
Opportunities for Foshan Meterny Building Material Co., Ltd:
As a manufacturer specializing in aluminum panels, ceiling tiles, fences, and decorative screens, Foshan Meterny Building Material Co., Ltd stands to benefit from the anticipated growth in construction activities. The company’s focus on high-quality, customizable products aligns with the market’s evolving demands.
Strategic Advantages:
- Product Diversification: Offering a range of products suitable for various applications positions the company to meet diverse customer needs.
- Technological Innovation: Investing in advanced manufacturing techniques can enhance product quality and production efficiency.
- Market Expansion: Leveraging the domestic market’s growth while exploring international opportunities can drive sustained business development.
Aluminum S shape profile
Conclusion:
China’s recent monetary easing measures are set to invigorate the construction sector, presenting significant opportunities for building material manufacturers. Companies like Foshan Meterny Building Material Co., Ltd, with their specialized product offerings and strategic positioning, are well-placed to capitalize on the anticipated market expansion.