Platts China Steel Sentiment Index Suggests New Steel Orders Drop in July - KMPH FOX 26 | Central San Joaquin Valley News Source

Platts China Steel Sentiment Index Suggests New Steel Orders Drop in July

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Platts

Monthly Index Totaled 45.90, down 6.03 Points from June's Reading of 51.93

BEIJING, July 2, 2014 /PRNewswire/ -- The health of China's steel sector appears to have ebbed slightly, with the industry largely anticipating a slowdown in new steel orders in July, according to the latest Platts China Steel Sentiment Index (Platts CSSI), which showed a reading of 45.90 out of a possible 100 points and marked a six-month low.  

The July reading is down 6.03 points from 51.93 in June and the lowest reading since 28.49 in January this year. Steel market participants anticipated a decrease in both domestic and export steel orders, but were more positive towards domestic orders.

The Platts CSSI reflects the responses of steel makers, traders and exporters at the end of each month to questions about new orders for the month ahead and the proprietary survey contains additional sentiment readings on production, inventories and prices. Similar to a purchasing managers' index, a CSSI reading above 50 indicates an increase/expansion and a reading below 50 indicates a decrease/contraction.

In terms of prices, survey respondents' outlook for domestic steel prices in July was much more positive than their outlook for export steel prices. Also, producers and traders of flat steel products, such as hot rolled coil, were significantly more bullish than last month. The flat steel price index reached 62.37 in July, up 27.10 points from 35.63 in June; while the long steel domestic price index was 50.00 in July, a more modest increase than for flats, compared with 45.45 the previous month.

Long steel products, such as rebar, are used in construction work, which typically experiences a slowdown in activity in the hotter summer months of the year in China.

The Platts China Steel Sentiment Index Survey -  July 2014

(a figure over 50 indicates expansion; under 50 indicates contraction)



July

Change
from

June


June


Platts China Steel Sentiment Index (Reflects New Orders)

45.90

-6.03

51.93



New Domestic Orders

46.71

-5.99

52.70


New Export Orders

36.42

-5.31

41.73


                                   Additional Sentiment Categories:





Steel Production

46.43

-12.95

59.38


Inventories





   Mill Inventories

46.43

5.80

40.63


   Trader Inventories

39.35

4.18

35.17


Price Expectations





    Domestic Long Steel Products Prices

50.00

4.55

45.45


    Domestic Flat Steel Products Prices

62.73

27.10

35.63


    Export Steel Prices

47.72

7.91

39.81


"Chinese mills have been increasing production of flat steel over the past month or so, taking advantage of lower iron ore prices which have helped improve their margins," said Paul Bartholomew, Platts managing editor for steel and raw materials. "The concern for mills and traders, however, is that all this supply could start to weigh on prices – particularly as the market slows during the slower summer period."

The July survey showed expectations for stronger prices for export steel than in June. The export steel price index was 47.72 for July compared to the June level of 39.81

Last month's Platts CSSI anticipated the strong steel production seen in June. China Iron & Steel Association data revealed record steel production during June 11 through June 20 of 1.83 metric ton/day.

But most market participants surveyed by Platts now believe output will fall in July.  Chinese mills often carry out maintenance work in summer, which can also impact production levels.

"Iron ore producers will be hoping that record steel production in June will not just be a flash-in-the-pan," said Bartholomew. "They're hoping they will be sustained over the rest of this year to support iron ore prices - which remain in the low $90 per metric ton range – particularly with so much new supply from Australia hitting seaborne markets in 2014."

The Platts CSSI found that slower steel output, combined with a slowdown in construction activity, could see inventories held by traders and mills increase in July.

The monthly Platts China Steel Sentiment Index is based on a survey of approximately 50 to 75 China-based market participants including traders, stockists and steel mill operators. The survey of month-ahead sentiment is conducted during the last full working week of each month, with the results published via press release and Platts' products and services before the 10th of the next month. Platts began tracking steel sector sentiment in China in May 2013. The Platts China Steel Sentiment Index survey plays no role in Platts' formal price assessment processes.

For more information about steel and metals visit the website at www.platts.com.

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals, metals and agriculture information and a premier source of benchmark prices for the physical and futures markets.  Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency.  Customers in more than 150 countries benefit from Platts' coverage of the biofuels, carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, shipping and sugar markets. A division of McGraw Hill Financial (NYSE: MHFI), Platts is based in London with approximately 900 employees in more than 15 offices worldwide. Additional information is available at http://www.platts.com.

About McGraw Hill Financial: McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power and McGraw Hill Construction. The Company has approximately 17,000 employees in 29 countries. Additional information is available at www.mhfi.com.

©2012 PR Newswire. All Rights Reserved.

  • Local NewsLocal NewsMore>>

  • Fresno Girl Battles Rare Cancer, Friends Organize Fundraisers

    Fresno Girl Battles Rare Cancer, Friends Organize Fundraisers

    Battling cancer can be tough for anyone.But imagine getting the diagnosis at just eight years old.Isabel Anderson complained to her parents in March that she had double-vision.By April, she was diagnosed with an inoperable brain tumor called Diffuse Intrinsic Pontine Glioma, or DIPG.The rare cancer affects about 300 children nationwide every year.“There is no known cause, there is no known cure. Right now, we are in a clinical trial to help get a cure for DIPG, increase the survival rate and ...More >>
    Battling cancer can be tough for anyone.But imagine getting the diagnosis at just eight years old.Isabel Anderson complained to her parents in March that she had double-vision.By April, she was diagnosed with an inoperable brain tumor called Diffuse Intrinsic Pontine Glioma, or DIPG.The rare cancer affects about 300 children nationwide every year.“There is no known cause, there is no known cure. Right now, we are in a clinical trial to help get a cure for DIPG, increase the survival rate and ...More >>
  • VALLEY DROUGHT 2014: Using Fish To Save Water

    VALLEY DROUGHT 2014: Using Fish To Save Water

    Valley Drought 2014 has a lot of people looking for ways to save water. Aquaponics is system that uses less water and grows vegetables and fruits, and is getting popular in the Valley.
    More >>
    Valley Drought 2014 has a lot of people looking for ways to save water. Aquaponics is system that uses less water and grows vegetables and fruits, and is getting popular in the Valley.

    More >>
  • West Nile Virus Victim Heads Home From Hospital

    West Nile Virus Victim Heads Home From Hospital

    Fresno attorney Jim Wasson walked out of rehab hospital Wednesday surrounded by family and friends.Wasson says he's lucky to have survived the complications of West Nile virus.Wasson says his new fight, to warn others about the potentially deadly virus that's being spread right now in the valley.Wasson says, "I can squeeze my hand but I still can't hold my arm up."Wasson is still hoping one day he will regain full use of his right arm.He is thankful to be home.Wasson says, "You know 25 to 30...More >>
    Fresno attorney Jim Wasson walked out of rehab hospital Wednesday surrounded by family and friends.Wasson says he's lucky to have survived the complications of West Nile virus.Wasson says his new fight, to warn others about the potentially deadly virus that's being spread right now in the valley.Wasson says, "I can squeeze my hand but I still can't hold my arm up."Wasson is still hoping one day he will regain full use of his right arm.He is thankful to be home.Wasson says, "You know 25 to 30...More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KMPH. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.