company news about The steel demand in the peak season may be hot!

Off-season demand slowly picks up

Yesterday, the National Bureau of Statistics released the latest national economic data. The scale of investment in fixed assets continued to expand. From January to July, it increased by 5.7% year-on-year and 0.16% month-on-month.

From the market point of view, after entering July, the domestic epidemic situation has basically been effectively controlled, and with the issuance of all special bonds at the end of June, all parts of the country have begun to seize the construction window period. According to incomplete statistics, a total of 3,876 major projects were started nationwide in July, with a total investment of nearly 2.4 trillion yuan. Such a huge investment quota and project start-up will gradually form an effective physical workload.

From the perspective of steel shipments, July shipments improved significantly. Taking Beijing as an example, according to the monitoring data of Lange Steel Cloud Merchant Platform, the 10 major players in the Beijing building materials market had an average daily shipment of 7,007 tons in July, an increase of 5,933 tons in June. 1074 tons, an increase of 18.1%.

At the same time, the social inventory of steel in July this year also continued to decline. According to the monitoring data of Lange Steel Cloud Business Platform, in July, the social inventory of steel products in 29 key cities across the country experienced a "five consecutive decline", a cumulative decrease of 2.035 million tons, a drop of 14.25%. In July last year, the social inventory of steel was in a continuous upward trend, with a cumulative increase of 553,000 tons in the "five consecutive increases". This drop and one increase also indirectly confirms that the demand in July this year is "not weak in the off-season" and continues to recover.

Peak season demand or more

According to statistics from the National Bureau of Statistics, from January to July, national infrastructure investment increased by 7.4% year-on-year, 0.3 percentage points higher than the growth rate in the first half of the year. According to the estimation of Lange Steel Network, the year-on-year growth rate of infrastructure investment in a single month in July has reached double digits and continues to accelerate significantly. With the domestic economy getting off to a good start in July, both economic growth and steel demand may see further improvement in the remaining two months of the third quarter.

After entering the second half of the year, the state has introduced a series of policies to "stabilize growth", which have been continuously increased and more targeted. The recently held National Standing Committee required all localities to speed up the progress of the project while ensuring quality and quantity, and to form more physical workload in the third quarter; the Political Bureau meeting of the CPC Central Committee included "guaranteed handover of buildings" into the meeting content, and the special debts strive to be basically used up by the end of August. . Continued policy support and the accelerated implementation of superimposed funds will stimulate the start of more engineering projects.

Chen Kexin, chief analyst of Lange Steel Economic Research Center, said that in the third quarter of this year, the national fixed asset investment will usher in a climax of physical construction, which will become the highest demand for construction steel throughout the year.

In addition, the manufacturing industry is gradually picking up. Among them, the growth rate of excavator sales turned positive for the first time in 14 months. The latest data from China Construction Machinery Industry Association shows that in July 2022, the sales volume of excavators was 17,939 units, a year-on-year increase of 3.4%, an increase of 14pct from June. Automobile production and sales have also achieved rapid growth. According to data from the China Automobile Association, in July 2022, automobile production and sales reached 2.455 million and 2.42 million, down 1.8% and 3.3% month-on-month, and up 31.5% and 29.7% year-on-year. , the growth rate was higher than the previous month.