Steel price season callback steel mills profit

The volatile dropped the whole steel industry, steel prices to pull up the power is not strong, steel mills profit rebound situation has also been gradually weakened. According to cisa, according to data from the first seven months of this year, 86 key large and medium-sized steel enterprises has increased in the net profit and sales income margin, profit margins and even its highest point since this year in July. Hong kong-listed in July has experienced a rebound process, helped the rise in steel prices, this is in July and August off-season, while off-season not weak prices prompted the overweight production of steel, and with the economic data and macro and positive stimulus by upstream raw materials costs, steel production slight rebound in August, market oversupply situation did not change. According to the National Bureau of Statistics, 1 - In August, the crude steel and pig iron, steel, Contain repeating material) Production of 480. 38 million tons, 521. 84 million tons and 701. 64 million tons respectively, growth than 1 - respectively In July to speed up the 0. 6, 0. 7 and 0. Crude steel nissan rose 8%, among which the August 1. 24%. Crude steel nissan level up again, the fragile influence on market supply and demand balance. In August, affected by the country steady growth policies and measures, the main steel industry continued rapid development, pull the steel prices continue to rise. But later as the fragile balance between supply and demand, and the other rising in the iron and steel production, steel prices and low run trend of fluctuations. In late August, iron and steel association CSPI steel composite price index for 102. 11 a. m. , than the rise in late July 1. 63 points, rise to 1. Narrow it down 62% from the previous month 0. 37%, steel price rise. 9 - Of steel demand is the traditional peak season in October, but gold nine dismal start to the domestic market steel prices have been for two weeks back slightly. Since entering in September, the market has been in a downturn, shagang also cut 20 yuan/ton, continuous stimulation around manufacturers began to fall, producer prices for steel mills cut to induce steel trade & other together; Price for quantity & throughout; Operation, the consumption of inventory. The current steel society inventory continues to decline, but fell significantly narrowed. In late August, the main market inventory of 13. 63 million tons of steel society, dropped 590000 tons, a drop of 4. Narrow it down 14% from the previous month 3. 95%. Destocking steel inventories decline narrowed, market or to a close. Although the early rise in steel prices, but the ore price gains have large steel price increase, the enterprise cost pressure. In late August, CSPI domestic steel price index rose by only 1. 62% year-on-year, while CIOPI imported iron ore prices for 135. 51 dollars/tons, from March 9. 01 dollars/tons, rose at 7. 12%, not only increase significantly higher steel prices, and rose up from the previous month 4. 93%. The current steel prices rebound is very limited, supply and demand of the weak improve hard to withstand the impact of the steel production growth. Reduce the high cost of also makes the steel mills profit, the late steel demand picks up will also be restricted, the central fine-tuning measures since June, July, the indicators more better, the month PPI, foreign trade exports, power consumption and manufacturing PMI sequential rebound trend, according to the real economy further declines in contained, and presents the rebound trend, since the August the whole economic data also a positive, the annual GDP growth 7. 5% laid a foundation. It also heralds the growth lower limit easy, also to a great extent, indicates the country no longer stimulative policy, policy expectations so subdued. So far no good news, policies, the downstream demand continues to improve limited, crude steel production capacity continue to go up, the coastal zone and the lack of upward momentum of raw materials, the hong kong-listed will remain weak, parts of downside risks remain. Gold nine now there was a third, market sales, the market did not rebound, let more bearish market outlook, many businessmen and steel continuous shock slump, the late hong kong-listed weak hard to change. Iron and steel industry profitability or in September will be declined.