Market Watch: Recent construction steel market fully shown "weakness" - construction steel market, steel prices - steel industry
Market Watch: Recent construction steel market fully shown "weakness" - construction steel market, steel prices - steel industry
Although the Olympic Games held soon, but the domestic construction steel market, it seems difficult to share the Olympics the "joy", the whole in July, construction steel market is in a "hover" state, recently, building materials market is more "weak", almost all markets turned down, caused great concern the industry.
Throughout the national market, the price adjustment, although in different regions vary, but the recent trend has been established the overall correction. Shanghai market since mid-July, Rebar Prices have declined steadily to 100 yuan / ton, and the Fujian part of the market prices of building materials in the country with "low." Northeast, East Central China, including some of the market prices fall relatively small margin. A significant reduction in prices mainly in the Southwest, steel prices drop 200-300 yuan / ton.
7,8 months of construction steel consumption of traditional off-season, because outdoor hot weather, hot weather and typhoons and storms appear intertwined, outdoor hard to properly display their works, even some key projects, the construction schedule will be higher than normal slowing down, seasonal factors on the formation of the current building materials market, a very negative constraints.
Of the construction steel market, the seasonal factor is not actually the greatest pressure, the biggest problem mainly from the decline in economic growth and investment demand, "weak." After entering in July, we have been able to clear that the Chinese economic slowdown, China's GDP growth rate during the first half fell by 1.8 percentage points in the second quarter economic growth rate drops quickly, and only 10.2%, close to single digits by speed.
The main reason leading to economic growth is slowing exports and investment, while down in June this year, China's exports growth rate fell 9.6 percentage points to 17.6%, which is rare in recent years, less than 20% over the same period the increase in . The investment situation seems even more unsatisfactory. The surface of our country's total fixed asset investment reached 6.84 trillion yuan, up 26.3% increase over last year increased 0.4 percentage points, but, considering the price of the first half of investment in fixed assets rose sharply, rising raw material costs the first half of the actual fixed assets investment growth is only 14.8%, lower than the actual investment growth last year, 6.8 percentage points lower than the actual growth rate of investment late last year, 7.2 percentage points, down nearly 6 years, the lowest growth rate of real investment.
This also can be seen, although in the first half continued to slow down China's construction steel production, steel production even declining, but in July after the building materials market has always been "Weidun" difficult to have good performance, the main cause of is the dramatic fall in investment demand. This year, the domestic rebar production below the same period last year (according to National Bureau of Statistics data), but far less than exports this year over the same period last year, the actual amount of resources to domestic rebar still reached 46.66 million tons, up 7.5% year on year roughly the same growth rate. Provision of resources to maintain the stability of the growth rate, investment demand significantly reduced 6.8 percentage points, can not put pressure on the market trends.
The recent pressure on the building materials have a greater market potential will come from real estate, real estate development and investment in the first half of the total investment in fixed assets have greater support investment growth rate reached its nominal 33.5% increase over last year 5 percentage points. However, the current local property market is entering into an adjustment phase, a number of central city housing prices began to fall, the National house prices have continued to slow down the momentum of particular concern are: the National Housing transaction area for the first time negative growth, 1 - May term sales fell 7.2%, an increase over the previous year dropped 23.8 percent over the same period. At present, many research institutions in China is expected to post real estate market will continue to adjust the short term is difficult to have good performance, if the area continues to decline transactions, real estate investment is bound to affect future growth, which led to construction steel demand continued to decline.
With the upcoming Olympic Games, the North's greatest "site" - in Beijing, its construction has stalled, some cities around the building is restricted, so the building materials in North China began the process of diversion to other areas from the Shanghai market, the recent increase has occurred a number of new foreign brands rebar, some of which should normally be the North's products come in the winter diversion, but the recent increased significantly, indicating that the stagnation of the Beijing market, is causing a lot of resources to find other alternative market, increased the pressure on other markets during the Olympic Games.
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Market Watch: Recent construction steel market fully shown "weakness" - construction steel market, steel prices - steel industry Anaheim