Steel market cost support action appears again.

On July 28, the meeting that the current economic operation faces some prominent contradictions and problems, to keep the strategic concentration, do a good job in the second half of the economic work, to seek improvement in stability work always tone, complete, accurate, comprehensive implementation of new development concept, speed up the building of new development pattern, strive to promote the development of high quality, consolidate the economic turnaround trend, keep the economy running within a reasonable range. At the same time, the meeting stressed that macro policies should take an active role in expanding demand, fiscal and monetary policies should effectively make up for the lack of social demand, and make good use of local government special bond funds to support local governments in making full use of the special debt quota. Monetary policies should also maintain reasonable and sufficient liquidity and increase credit support to enterprises. We will make good use of new credit from policy banks and investment funds for infrastructure construction. We will also stabilize the real estate market and ensure that housing is for living in, not speculation. We will make full use of our policy toolbox to support demand for housing that is fixed or improved, and hold local governments accountable to ensure housing supply and ensure people’s wellbeing. For the domestic steel market, the improvement of terminal demand is the key to the real return of the steel market. The improvement of infrastructure demand is just around the corner, and the real estate demand may be expected to accelerate the pace of construction and gradually increase the consumption. From the perspective of the supply side, due to the recent strengthening of iron ore and coking coal prices, the supporting role of the cost side appears again. At the same time, the profit of some furnace plants has begun to improve, and the willingness to resume production is gradually increasing. The process of steel mills’ drastic production reduction may be interrupted. From the demand side, due to the low price of steel rebound, under the influence of the “buy up not buy down” mentality, part of the inventory demand began to release, but due to the influence of high temperature and rainy weather, project construction progress is still limited, terminal demand can be released as scheduled is the focus of the market concerns. From the cost side, due to the strengthening of coking coal price and the continuous decline of coke price, coking enterprises have been forced to increase the efforts to limit production again. At the same time, the rebound of iron ore price makes the cost support function of steel market appear again.
On July 28, the meeting that the current economic operation faces some prominent contradictions and problems, to keep the strategic concentration, do a good job in the second half of the economic work, to seek improvement in stability work always tone, complete, accurate, comprehensive implementation of new development concept, speed up the building of new development pattern, strive to promote the development of high quality, consolidate the economic turnaround trend, keep the economy running within a reasonable range. At the same time, the meeting stressed that macro policies should take an active role in expanding demand, fiscal and monetary policies should effectively make up for the lack of social demand, and make good use of local government special bond funds to support local governments in making full use of the special debt quota. Monetary policies should also maintain reasonable and sufficient liquidity and increase credit support to enterprises. We will make good use of new credit from policy banks and investment funds for infrastructure construction. We will also stabilize the real estate market and ensure that housing is for living in, not speculation. We will make full use of our policy toolbox to support demand for housing that is fixed or improved, and hold local governments accountable to ensure housing supply and ensure people’s wellbeing. For the domestic steel market, the improvement of terminal demand is the key to the real return of the steel market. The improvement of infrastructure demand is just around the corner, and the real estate demand may be expected to accelerate the pace of construction and gradually increase the consumption. From the perspective of the supply side, due to the recent strengthening of iron ore and coking coal prices, the supporting role of the cost side appears again. At the same time, the profit of some furnace plants has begun to improve, and the willingness to resume production is gradually increasing. The process of steel mills’ drastic production reduction may be interrupted. From the demand side, due to the low price of steel rebound, under the influence of the “buy up not buy down” mentality, part of the inventory demand began to release, but due to the influence of high temperature and rainy weather, project construction progress is still limited, terminal demand can be released as scheduled is the focus of the market concerns. From the cost side, due to the strengthening of coking coal price and the continuous decline of coke price, coking enterprises have been forced to increase the efforts to limit production again. At the same time, the rebound of iron ore price makes the cost support function of steel market appear again.


Post time: Aug-01-2022