Platts has released its August Steel Sentiment Index Survey and it’s unhappy reading. From Market Watch:
August ’14 Change from July ’14 July ’14 Platts China Steel Sentiment Index (Reflects New Orders) 46.97 1.07 45.90 New Domestic Orders 47.44 0.73 46.71 New Export Orders 41.54 5.12 36.42 Steel Production 34.62 -11.81 46.43 Mill Inventories 73.08 26.65 46.43 Trader Inventories 59.44 16.55 42.89 Domestic Long Steel Products Prices 64.29 14.29 50.00 Domestic Flat Steel Products Prices 29.17 -33.21 62.73 Export Steel Prices 35.61 -12.10 47.72 “Chinese mills and traders generally view the domestic market as being quite weak at the moment with inconsistent performances across the various end-user segments,” said Paul Bartholomew, Platts managing editor for steel and raw materials. “So while manufacturing has slightly improved in recent months, the country’s property sector remains sluggish. The key reason for the stronger outlook for long steel (the type of steel used in construction) is that market participants believe prices cannot drop any further from current levels.”
Production whacked, new orders stalled, inventories leap, prices mostly down, what’s to like?
