Chinese steel prices suffer from the signs of flexibility in the wider economy and the demand for a peak demand season in the construction industry.
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(Bloomberg) – Chinese steel prices, despite the signs of flexibility in the wider economy and the peak demand season in the construction industry.
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The separation between the best economic data and the dark reality associated with the real estate market proposes another difficult year for steel makers in the country – and an additional large for the government to impose cuts on a swollen industry due to its dependence on real estate spending that is no longer.
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The end of the new lunar holiday and warm weather in the spring usually increases the construction activity in the very seasonal economy in China. But the future futures for the reinforcement tape, used in construction, reached the lowest level in six months last week and was more than 10 % less than the levels of the year.
This trigger was another collapse in the main Chinese housing scale, and this time he fell 30 % in new structures during January and February, according to Lawrence Chang, Wood Mackeenzie Ltd. This is the most intense part of the market on the market and was the worst beginning for two years.
See beyond the years of property that takes years, and the prospects for the economy seem brighter, including data that usually talks about steel demand. The investment of fixed assets is accelerated for two months, and raised more government spending. The construction purchasing directors index recovered in the expansion in February.
On a wider scale, the government has indicated its intention to achieve the goal of ambitious growth by 5 % by contacting the budget deficit for this year to a record. The promise is made by more spending at the local government level through bonds that are usually used for infrastructure, and debts are issued at a faster pace than usual.
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But the upper line data is largely deducted as the market is searching for Satan in detail in the latest property numbers.
“These granules provide a more detailed and accurate picture of the market dynamics and overcome the wider positive indicators,” said Zhang by email.
The installation of the real estate sector is still a major goal of politics, and fewer housing will eventually help the balance between supply and demand. But this is not an ointment for construction -based steel markets.
Although steel demand is increasing in infrastructure, rather than private property developments, this has become less intense minerals with the maturity of the economy. In any case, it gives priority to investment consumption and higher technology growth over the old economy, with spending plans.
In fact, the only initiative for the government of the steel market in the legislative meetings of this month was a pledge to reduce production, which may be all that you need to know about the diagnosis of industry health in the long term.
On the wire
Chinese solar panel makers are scheduled to test an increase in 2Q orders while consumers are racing towards the river course to end the facilities to secure a favorable and consistent energy tariff before the deadline in June, according to the intelligence Bloomberg.
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On Monday, President Donald Trump issued an order that allows a 25 % tariff on any country that buys oil and gas from Venezuela, which increases the pressure on China, a major buyer of Venezuelan crude.
American lawmakers, labor unions, and steel manufacturers were at odds with shipping companies and farms exporters on Monday due to the Trump administration's proposal to place the fees full of weapons on the Chinese ships associated with the United States in the United States.
Diaries this week
(At all times, Beijing is not noticed.)
Tuesday 25 March:
- Boao Forum, the first day
- Profits: WH group, China Modern Dairy, China Oil Field Services, Kunlun Energy, Huaneng Power, Datang INTL Power
Wednesday 26 March:
- China Clean Energy Gallery in Beijing, first day
- Pau Forum, today 2
- Weekly briefing CCTD online on Chinese charcoal, 15:00
- Csia weekly Polysilicon prices
- Profits: CGN Power, Beijing Gas, Chaalco, Tianqi Lithium, China Mongniu Dairy
Thursday 27 March:
- China Clean Energy Gallery in Beijing, today 2
- Boao Forum, today 3
- Industrial profits in China in Feb, 09:30
- Remove gas profits in Beijing in Hong Kong, 10:00
- Evaluating the price of the weekly solar chip from CSIA
- Profits: CNOOC, Jiangxi Copper, China Natl Building
- Hong Kong's CNOOC profits surround, 17:00
Friday, March 28:
- China Clean Energy Gallery in Beijing, today 3
- Boao Forum, today 4
- Weekly iron ore in stocks in China
- Shanghai's weekly commodity stocks, about 15:30
- Profits: Maanshan Steel, Angang Steel, Citic Ltd. , Ganfeng Lithium, GoldWind, GCL-Poly, Datang Renewable Power
Saturday 29 March
Sunday 30 March
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