The decline in China's housing and construction market has had a profound knock-on effect on China's steel industry. Due to decreased demand for steel from construction, as huge construction projects around China are reduced to ghost towns by decreased investment, Chinese state-owned steel companies have seen their profits drop by almost 96%. The drop in steel prices may be an indicator of things to come; lower steel prices suggest lower predicted economic growth, and may spell disaster for China's hopes of continued rapid growth.