Steel prices facing downward pressure

Throughout the national market, the current 35 major markets nationwide rebar inventories of 4.732 million tons, 155000 tons, the damping is 3.17%; Wire inventory of 829000 tons, 24000 tons, the damping is 2.81%. From the wire, rebar, hot-rolled coil, manufacture volume five varieties, medium thick plate stock, this period the national comprehensive inventory for a total of 10.513 million tons 246000 tons, the damping is 2.29%. Overall, this week the national steel inventories back down channel, the main varieties of steel inventories declined across, the current inventory level is down 12.99% from a year earlier. The current domestic market during the “golden nine” traditional consumption season, combined with the recent active fiscal policy continues, overall improved market demand, steel market inventory digestion speed is accelerated.

Released on Sunday, industrial production, consumption and investment data were mixed, with industrial production, consumption growth is slightly faster, but much weaker than expected, investment growth has dropped sharply. August industrial output grew by 6.1% year on year, more than 0.1% in July to speed up, but less than 6.6% of the industry is expected to significantly. Total retail sales of social consumer goods in August compared with the same nominal growth edged up 0.3 percentage points to 10.8%, but if deduct price factors, total retail sales of social consumer goods actual growth of 10.4% during the month, with flat last month. 1 – fixed asset investment grew 10.9% year-on-year in August, down 0.3%, compared with July 1 – a new low since June 2000. Three types of investment in real estate investment growth continued downward, manufacturing, infrastructure investment rebound, but insufficient. August 1 – the national real estate development investment grew by 3.5% year on year, faster than 1 – fell 0.8% in July, fell more than 1 – expanded by 0.5% in July, a new low since March 2009, the new construction area, construction area of the building, land acquisition area data such as worsening; Manufacturing investment grew 8.9% year-on-year growth rate dropped 0.3%; Infrastructure investment grew by 18.4% year on year, growth is higher than 0.2%. Shows the current weak rebound on the whole fixed assets investment of infrastructure investment is difficult to form a substantial boost, failed to drive continuous improvement of real estate sales of real estate investment recovery, real estate data, broad-based, been a heavy drag on domestic hong kong-listed demand.

According to the national bureau of statistics, China’s crude steel and steel production in August 66.94 million tons and 94.49 million tons respectively, fell by 3.5% and 0.4% respectively compared to the same. In August, China’s crude steel and steel average daily output of 2.1239 million tons and 3.0481 million tons respectively, from July from growth of 1.67% and 1.67% respectively. In August, according to customs statistics, China’s steel exports of 9.73 million tons, from the previous month an increase of 20000 tons, up 25.9%; August our country imported steel 1.02 million tons, fell 30000 tons, the month fell 12.82% year on year. Thus, China’s crude steel and steel resources in August supply 57.71 million tons and 85.78 million tons respectively, year-on-year decline 7.8% and 2.2% respectively. Visible although iron and steel enterprises in north China in late August is influenced by the military parade in Beijing environmental protection production, but the whole month to see domestic crude steel and steel output are obviously improved, reflects the speed up the pace of steel production, market supply pressure increased.