Market analysis on December 16

• from：迅xunzhuoweb
• admin：admin123
• date： 2021-12-16

Market analysis on December 16

 

      The latest data released by the National Bureau of Statistics live various indicators have improved compared with the previous period. At present, all links in the upstream of the industry have higher profits. Northern steel mills have successively introduced winter storage policies, superimposed on steel mills to reduce production expectations, and supply and demand is based in a balanced state.
       It is expected that in the short term, the domestic billet market will be dominated by narrow fluctuations, and the follow-up needs to focus on and understand the actual situation of production reduction during the Winter Olympics.
       Fu Linghui, spokesman for the National Bureau of Statistics and director of the Department of Comprehensive Statistics of the National economy, said on December 15 that whether the Winter Olympic Games would lead to the shutdown of large-scale factories in China.
     The Central Economic Work Conference also made a judgment that Chinese Economy Growth is facing three pressures of demand contraction, supply shock, and expected weakening under the current situation.
      This is in the context of the complex and severe international situation, the spread of the global epidemic, the poor circulation of the industrial chain and a supply chain, the rise in commodity prices, as well as the prominent domestic phased structural problems, the emergence of new downward pressure on the economy.
      Looking at the domestic situation from statistical data alone, it’s also clearly reflects the domestic pressure brought by these three pressures and the economy downward pressure brought by the economic winter.
       Although from the perspective of demand, the year-on-year growth rate of total retail sales of consumer goods dropped from double-digit growth at the beginning of the year to single-digit growth, and the two-year average growth rate also dropped from the growth 6.3% in March to the growth 1.5% in August. However, it is still at a low level.
       The year-on-year growth rate of investment also fell from double-digit growth at the beginning of the year to single-digit growth, and the two-year average growth rate also showed an overall downward trend, reflecting the change in demand.
      He Wenbo, Secretary of the Party Committee and Executive Chairman of the China Iron and Steel Association, delivered a keynote speech entitled quo&t;Reflections on the Digital Transformation of China，Iron and Steel Industry; at the 2021 (3rd) Global Industrial Internet Conference.
      The two sentences I often mention now are the color of production capacity and the IQ of the production line, that is, the green development and intelligent manufacturing of the steel industry. By solving these two problems, the steel industry can truly adapt to the two major constraints of resources and the environment, fully fulfill the mission of ensuring supply, and continue to maintain and enhance competitiveness. In fact, China Steel has acted quickly in this regard, and many companies have been in the forefront of the world, becoming explorers and pioneers of steel supervision healthy development and intelligent manufacturing in the world.
      Facing the future, industrial Internet empowerment steel will become four important entry points and breakthroughs to promote the interconnection process of Traditional Industries in China and emerging strategic industries . Digital transformation will become one of the important ways to promote the transformation and upgrading of the steel industry and achieve high-quality development.
       For the rest of this year and next year trends in the steel industry , industry insiders and experts expect that in the context of reducing production, the market will mainly depend on demand.
       Experts in China iron and steel industry have made an inference based on trial production output generally speaking, from the existing data and the current situation, we infer that the (steel) consumption next year should be about the same as this year.
      Of course, the future depends on whether the country will introduce other policies, including finance, infrastructure, and other aspects of the situation, these may still need to be judged.

                                                                                                     （Information from the Network）