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About Steel: The steel
market diverged in the week before Mid Autumn Festival. Price of
construction steel and structural steel rose by 40-170 yuan per ton. In
comparison, HRC price dived by 50-150 yuan per ton. The price of longs was
contributed by recovery in demand and production cuts conducted by long
steel producers.
It is known
that some mills in Jiangsu province was arranging production cutbacks by
30-50 percent, generating decreased supplies to market
SteelHome
predicts that steel market price will rise by 50-100 yuan per ton in the
week after Mid Autumn Festival.
About Fuels
and Raw Materials: Coke kept rising. As SteelHome knows, a few coke
producers intended to announce 12th round of price hike in
coke, the move may be curbed by mills’ production cutbacks. Coal and
coke market will remain strong in short run.
Imported iron
ore price kept falling, with the seaborne quotation diving by 25-28
dollars in a week. Traders with imported iron ore at Chinese ports were
busy clearing the inventory. Billet market was mixed, with price decline
in Jiangsu province where rolling mills considerably cut production. Scrap
market mostly went down, as the charge in mills decreased. FeSi and SiMn
market kept soaring, after the energy consumption control policy was
released in Shaanxi province.
About
Industry: As NBS
reported, in August, China produced 83.24 million tons of crude steel,
71.53 million tons of pig iron and 108.8 million tons of steel products,
down 13.2 percent, down 11.1 percent and down 10.1 percent on year. With
August data, the expected crude steel production target no more than 1.06
billion tons, in 2021, may be realized.
About Macro: With negative impact from Covid-19, growth of
investment decelerated. The composite growth rate of FAI in two years was
4.2 percent. By industry, the growth rate in manufacturing one rose by 0.5
percentage point; the rate in infrastructure construction was negative,
dragged by heavy rain and pandemic burst in the first half of August; and
that in property kept falling, with central government’s hand.
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