PPI About to Go Negative

The increase in the Chinese PPI has been decelerating in 2017, but in the first twenty days of April steel prices are down 8 to 12 percent. With oil prices slipping at the end of April, the year-on-year boost from energy will also be gone.
EO: 经济上行、钢价下跌,PPI来到了岔路口?

20 days ago, from the Qian'an in Hebei cargo owner Zhang hesitated two months later, and finally the hand of 1,000 tons of iron ore powder sold out. That time, iron ore powder price is 860 yuan per ton. 20 days of time, the price has dropped to 600 yuan per ton. If not shot in time, he will directly lose 260,000 yuan.

...At this point, the news from the East Coast is that China's iron ore stocks at ports is 130 million tons. In fact, in early March, China's iron ore port inventory already reached the figure, while China's imports of iron ore were 95.56 million tons.

...At present, the prevailing view of the market is that changes in supply and demand have led to a reversal of prices. According to data released by the National Bureau of Statistics on April 17, the national crude steel, pig iron and steel production in March were 72 million tons, 62 million tons and 96.76 million tons, up 1.8 percent year on year, up 1.3 percent and 0.7 percent respectively; Among them, the average daily production of crude steel reached 232.26 million tons, an increase of 6.42%, a record high. The first quarter of this year, China's crude steel production was 201.1 million tons, an increase of 4.6%.

No comments:

Post a Comment