It is expected that the market demand will continue to be weak in July, and the prices of steel and raw materials will fluctuate at a low level
In June, the PMI of the steel industry was 36.2%, down 4.6 percentage points from the previous month. The operation of the steel industry was relatively sluggish. Affected by the epidemic, downstream demand has shrunk, driving the overall decline in steel prices and the decline in steel production. It is expected that in July, the overall market demand will continue to be weak, and the prices of steel and raw materials will fluctuate at a low level. This is what the reporter learned from the latest report released by the China Federation of Steel and Logistics Professional Committee recently.
In terms of demand, in June, the domestic epidemic situation improved, but the impact of the epidemic on the demand side of the steel industry continued, and the demand for steel was not effectively released. On the one hand, the logistics blockage has affected the release of demand; on the other hand, the epidemic has caused some steel-using enterprises to run into difficulties, suspend business or close down, and their market demand has not recovered due to the improvement of the epidemic situation; at the same time, the investment in the real estate market is relatively sluggish, which supports the demand for steel. weakened. Data show that steel demand continued to shrink in June, and the new order index was 25.9%, down 6.5 percentage points from the previous month, falling for four consecutive months and hitting a record low. The decline in demand has driven the overall decline in steel prices, and the price of raw materials has dropped significantly.
On the supply side, steel mills are not willing to produce enough, and the supply side is showing a downward trend. The production index in June was 34.1%, down 8.6 percentage points from the previous month. Since late June, the sharp drop in steel prices has further reduced the profits of steel companies, resulting in the spontaneous joint maintenance and production reduction of steel companies in various places, which to a certain extent further reduced the output in the second half of the month.
The report predicts that the steel market demand in July may continue to be weak as a whole. Overall, the support for steel demand is relatively weak, and the market demand may be released faster after September. Steel mill production continued to run low. Market prices fluctuated at low levels. With the supply side and production side both tight, steel prices are expected to achieve a weak balance. The low production level will lead to a decline in the demand for raw materials, weakening the support for iron ore and other materials, and the price is expected to fluctuate at a low level
In terms of demand, in June, the domestic epidemic situation improved, but the impact of the epidemic on the demand side of the steel industry continued, and the demand for steel was not effectively released. On the one hand, the logistics blockage has affected the release of demand; on the other hand, the epidemic has caused some steel-using enterprises to run into difficulties, suspend business or close down, and their market demand has not recovered due to the improvement of the epidemic situation; at the same time, the investment in the real estate market is relatively sluggish, which supports the demand for steel. weakened. Data show that steel demand continued to shrink in June, and the new order index was 25.9%, down 6.5 percentage points from the previous month, falling for four consecutive months and hitting a record low. The decline in demand has driven the overall decline in steel prices, and the price of raw materials has dropped significantly.
On the supply side, steel mills are not willing to produce enough, and the supply side is showing a downward trend. The production index in June was 34.1%, down 8.6 percentage points from the previous month. Since late June, the sharp drop in steel prices has further reduced the profits of steel companies, resulting in the spontaneous joint maintenance and production reduction of steel companies in various places, which to a certain extent further reduced the output in the second half of the month.
The report predicts that the steel market demand in July may continue to be weak as a whole. Overall, the support for steel demand is relatively weak, and the market demand may be released faster after September. Steel mill production continued to run low. Market prices fluctuated at low levels. With the supply side and production side both tight, steel prices are expected to achieve a weak balance. The low production level will lead to a decline in the demand for raw materials, weakening the support for iron ore and other materials, and the price is expected to fluctuate at a low level
