The latest news, yesterday Shagang introduced ex-factory price in early August, the rebar flat, high wire, plate, screw the price down to 150 yuan / ton. And steel, sheet steel were down to 150 ~ 300 yuan / ton, have dropped. The analysts believe that on the rebar, steel, sand and finally three consecutive inquiry after falling flat, but flat steel ex-factory price is still upside down with the market price, traders still feel pressure. And August is still demand for off-season, lack of demand is difficult to consume high inventory, coupled with limited steel production is August building materials are still faced with the contradiction between supply and demand increased, prices of construction materials still fear continued to fall.
The last two days of the end of July, after hearing the news broken bits of the market price fell Forced steel mills began to cut, this boost market confidence, construction steel began to rebound, some areas rebound margin, the market environment seems to be thriving. But there are still some people believe that overwhelmed a rebound does not exist strong support, but the business mentality of mischief, so wait and see attitude in most of the businesses held steady, look forward to the emergence of steel policy. Sand steel price adjustment so one into the accident down, but the rebar flat plate moves, or unexpected.
Due Shagang and Yonggang, transit ex-factory price gap is small sand steel plate, screw, and the high line, in order to further consolidate the market share, down 150 yuan / ton increase. But with the decline of steel prices is much larger than the decrease of raw material and fuel prices, the profits of the domestic steel prices generally decline, forcing the steel to increase maintenance efforts. According to statistics, in June, the large and medium-sized steel enterprises has appeared in a loss of 118 million yuan, is expected to profit further deterioration in July. Flat on rebar, and last month subsidy reduction, it can be understood.
Chinese officials yesterday announced the July PMI index was 50.1, a record eight month low, the data show bottoming signs of stabilization of economic growth, but weak demand downward pressures still exist. The sub-index, production index for the previous month dropped by 0.2 percentage points to 51.8, the lowest since December 2011, indicating that manufacturing production growth continues to slow down. HSBC PMI is the final value of 49.3, a new high in three months, but is still in the fortunes of the bottom line, so the manufacturing sector continued to show atrophy. So large as downstream of the steel industry, steel manufacturing downturn, it is foreseeable that the late steel market demand for the release or limited.
Summary of the major domestic steel mills maintenance production information from the July statistical study found that 26 steel mills maintenance discontinued in mid July, the steel mills are still many in the more common during the overhaul cuts, but in mid-July crude steel production forecast remains high of 1.9933 million tons. Even if the steel mills began to cut more to really improve the supply and demand situation is still some distance, cut short-term effects or is still hard to show, coupled with the demand is not obvious, the contradiction between supply and demand will continue to restrict steel prices.
The Shagang The lowered still out on the demand for off-season in August to consider the lack of demand, steel production is limited, the steel market rebound is not likely to Shagang and as building materials steel price adjustment "wind vane" in the first day of August, the leading down, then, Yong-Gang, transit, such as steel mills or down with the pace of Shagang, coupled with before such as Baosteel, Anshan Iron and Steel plate price adjustment on August dominant down. So the main tone of the Steel City in August or still steel price adjustment conduction vulnerable fall.
Although the second half of the work should be steady growth on a more important position in order to expand domestic demand as the strategic basis for policy support to increase the development of the real economy. But August is still the law of the traditional season in the off-season, hot and rainy, hot summer heat, the construction site is restricted, so the real needs on site in August the release of the limited space. Cost support weakened, high inventories and steel prices down the impact of August steel prices rebound opportunities, or still may dip down.
Other News:
The Shagang early price sharp decline in steel prices deep crisis in August
The Vietnam Steel Association proposed to increase stainless steel import tariff
Exposed Liu Xiang, before receiving the gold medal instruction
The United States will roller bearing cone originating in China levied a 5-year
Harbin Bearing jointly U.S. enterprises to enter the high-end market in Europe a
Members who wish to Gordon on the 19th Diaoyu Islands Sino-Japanese dispute clos
Building Materials apparent decline of steel upside fatigue
Bank loans overall contraction in the steel trade enterprises are turning to the
