The report further pointed out that the first half of the domestic economy facing greater difficulties, especially in the second quarter, the domestic GDP growth of 7.6% is close to the 7.5% target set in the early. Downstream steel industry at the bottom process, investment in fixed assets, there is a clear decline in above-scale industrial added value growth, and leading indicators of undirected good sign, decline of the steel industry needs short-term can not be reversed. The capital side is loose, but substantial positive effect is difficult to perceive, can not be introduced for large-scale economic stimulus policies.
In addition, the average daily production of domestic crude steel in June once again onto the steps of 2 million tons; dealers bad because of funding problems and the outlook is expected to reduce the order to lower the reservoir; plant inventory of steel prices and order pressure Baosteel, Wuhan Iron and Steel, Shougang, Angang, and other leading steel sharp decline in prices in August, low-cost frequency to compete for limited orders for steel, weighed on the market to accelerate downstream; raw material prices fell slightly post-cost pressure will gradually inhibit the iron and steel production release; steel exports are relatively stable, but limited role to ease the pressure on domestic resources. Difficult to change the fundamentals of late the domestic market, steel market is expected to continue to the depth of the bottom.
On the current impact factors of the domestic steel market run CISA pointed out that the internal and external domestic economy, steady increase of the intensity or overweight; downstream industry slowdown and decline in steel demand intensity; June manufacturing PMI index hit a low during the year, indicating that the manufacturing the growth of the industry is still weak; steel production see also picked up; decline in mitigation of the social stock of steel, steel prices stock pressure; raw material prices fell slightly; increase in exports of steel; steel prices down.
Turning to post-market need to focus on the main issues and Steel Association, steel production remained high, steel supply and demand situation is still not optimistic. June crude steel production level of 2.007 million tons, is the second high daily production level. Capacity to release faster and homogenization of competition post-market situation is still grim, iron and steel enterprises should adhere to contract production, lower than the manufacturing cost of production management principles, effective control of production capacity to release.
On the other hand, the U.S. and European markets continued to decline in demand for steel exports more difficult. The end of June, the market price of steel in North America for four straight months fell, European and Asian markets for two consecutive months, dropped. July, the international market, steel prices continued to show a downtrend. Weakness in the international market demand and prices fall in the latter part of the domestic steel exports have increased the difficulty.
In addition, the national macro-policy pre-tune fine-tune the steel market will gradually appear. Iron and steel enterprises should pay close attention to market changes, timely adjustment of product structure to meet the needs of downstream users.
June of view, the domestic market demand for steel continued to show weakness, but the iron and steel production maintained a high level, the market supply and demand is still prominent, steel prices continue to decline. End of June, steel CSPI composite steel price index was 115.48 points qoq to 1.74% year on year decline of 14.08%. CSPI long products index was 119.54 points qoq to 1.52%, year on year decline of 15.67%; sheet index of 113.18 points qoq to 1.96% year on year decline of 12.82%.
End of June, CISA monitoring eight varieties of steel prices continue to fall, in which high-wire, rebar, continued to decline, but the decline is significantly narrowed from the previous month, respectively, the ring than a decrease of 1.10% and 0.96%; angle decreased by 2.56%; in thick hot-rolled coil, cold-rolled sheet and galvanized sheet price decreased by 2.56%, 1.90%, 2.95% and 0.93%; hot-rolled seamless pipe prices fell 1.07 percent.
And into July, the domestic steel market continued the downward trend into the mid-market to restart the decline, and rapidly evolving market for a new round of sharp sell. Since July, continuing the rainy and continuous high temperature, to the downturn in the steel city worse.
Although the central bank cut interest rates again to loose the capital side, but the economic operation in the first half of the data show that the domestic economy is still in decline, the government reiterated the regulation of real estate does not relax significantly, the market pessimism. With futures, electronic trading is the sharp decline in the price change from a weak shock is decreased significantly, Mid-Baosteel and other leading steel mills sharp decline in prices in August. Many superposition of the negative factors, the increase in market panic mentality, the price decline accelerated, prices fall to the "three times" in most varieties, the highest in nearly two years since a new low.
As of July 13, the country's 26 major markets five varieties of steel Social inventory was 15.459 million tons, moving up two weeks later back down again; year 1.63 million tons higher than the total inventory of rebar and wire rod above 1.94 million tons, growth continued to be significantly enlarged. Rebar inventories of the major cities across the country a total of 6.7228 million tons, the pericyclic than a slight decrease of 02,300 tons; wire stock a total of 1.7221 million tons, a decrease of 43,100 tons; hot-rolled a total of 3.7825 million tons, a decrease of 26,000 tons; cold rolling stock total of 1.6903 million tons, a decrease of 10,600 tons; plate inventory total of 1.5416 million tons, a decrease of 07,100 tons.
Other News:
Steel prices two-year low of late is expected to continue to the depth of the bo
Russian Border Service: to the Chinese fishing boat fire at the Department of le
To make a U-turn at the US-B-1B bombers to deal with China, said one will be abl
The profits of the iron and steel enterprises will gradually improve in the next
Ambassador to China, will have been replaced accused can not cope with the compl
Diaoyu Islands' main island, ＂said the will not sell the island to the Japanese
Steel prices fall further whether it will bring a substantial cut
Japanese right-wing deliberately to challenge the Chinese bottom line
