According to the latest data from the China Steel Association, the average daily crude steel output in China for the second half of August is estimated at 2.192 million tons, marking a 0.05% increase compared to the previous month. The daily crude steel output in the upper, middle, and lower thirds of the country during August all exceeded 2.11 million tons. It is expected that the average daily crude steel output for August will reach 2.2168 million tons, representing a slight rise of 1.04% (up 0.7%) compared to the previous month's actual output.
Following a rebound in domestic steel prices during July and August, key steel enterprises turned from losses to profits in July. Combined with expectations for the traditional "Golden September and Silver October" peak season, this has boosted companies' willingness to expand production. Despite the weak consolidation in the domestic steel market since late August, and the fact that iron ore prices have risen more sharply than steel prices, which has squeezed corporate profits, steel producers have not shown any intention to cut output, raising concerns among market participants. According to a survey by MySteel Network, the capacity utilization rate of 156 blast furnaces in Tangshan remained at 93%-94% in August, up from 90% in July.
Although the steel market has entered the traditional peak season, the trend of weak consolidation continues. While the PPI fell by 1.6% year-on-year in August, the decline has narrowed for three consecutive months, signaling that the industrial economy is gradually stabilizing. At the same time, social steel inventories have declined for the 25th consecutive week, indicating that there is still some demand in the market. However, with terminal demand not yet picking up and steel supply pressures increasing again, the market may remain stagnant until steel mills adjust their ex-factory prices.
As of September 6, 2013, according to MySteel Network’s survey, national social steel stocks in major cities reached 14.49 million tons, down 1.4% from the previous week and continuing the 25-week downward trend. Meanwhile, the inventory of key steel enterprises stood at 12.45 million tons at the end of August. Although this represents an increase of 0.81% from the end of the previous month and 5.05% from the same period last year, it remains at a low level since February.
Tomorrow, the National Bureau of Statistics will release key macroeconomic data for August, including fixed asset investment, real estate development investment, and total retail sales of consumer goods. In addition, the new round of ex-factory price announcements from major domestic steel mills are also expected, which could disrupt the current consolidation pattern and lead to market volatility. However, the rising crude steel output may limit the potential for further price increases in the coming period. Historical data shows that after reaching a high level in the second quarter, domestic crude steel production typically declines in the third and fourth quarters. Given the weak demand in the fourth quarter, steel output in September may not surge significantly, though a sharp drop is unlikely either.
Dust Pouches,String Pouch Dust Pouches,Dust Proof Clothes Storage Pouch,Dust Cover Storage Pouch
Dongguan C.Y. RedApple Industrial Limited , https://www.hpgbags.com