On July 31st, the steel spot market was dominated by declines, with all major futures commodities falling. Coking coal hit its lower limit, with rebar and hot-rolled coil falling around 4%.
Iron ore fell 2.38%, and coke dropped 4.93%. Due to the Federal Reserve’s unchanged interest rate policy and the cautious tone of the Politburo meeting regarding its “anti-involutionary” approach, market speculation cooled, leading to a sharp decline in ferrous metals.
Ministry of Commerce Comments on China-US Trade Talks with Sweden
The Ministry of Commerce held a regular press conference, and a reporter asked about the China-US trade talks in Sweden. Ministry of Commerce spokesperson He Yadong stated that from July 28 to 29, China and the United States held trade talks in Stockholm, Sweden.
The two sides engaged in candid, in-depth, and constructive exchanges on economic and trade issues of mutual concern, including Sino-US economic and trade relations and macroeconomic policies. The two sides reviewed and affirmed the consensus reached in the Geneva trade talks and the implementation of the London framework.
China looks forward to working with the United States to continue to implement the important consensus reached during the call between the two heads of state, give full play to the role of the China-US trade consultation mechanism, further deepen dialogue and consultation, and strive for more win-win outcomes.
National Bureau of Statistics: Manufacturing PMI in July was 49.3%, down 0.4 percentage points from the previous month
In July, the manufacturing Purchasing Managers’ Index (PMI) was 49.3%, down 0.4 percentage points from the previous month, indicating a decline in manufacturing sentiment.
The non-manufacturing business activity index was 50.1% in July, down 0.4 percentage points from the previous month, but still above the critical mark. The composite PMI output index was 50.2% in July, down 0.5 percentage points from the previous month, but still above the critical mark.
The construction business activity index was 50.6%, down 2.2 percentage points from the previous month. Overall, due to high temperatures, heavy rain, and other weather factors, July entered the off-season, slowing production and operations in the manufacturing and construction sectors.
This weakened steel demand, negatively impacting steel prices.
The China Metal Materials Distribution Association issued an initiative to resist “involutionary competition” and promote the scientific and orderly development of the steel distribution industry.
On July 30, the China Metal Materials Distribution Association issued an initiative to resist “involutionary competition” and promote the scientific and orderly development of the steel distribution industry.
The initiative calls for strict compliance with the Anti-Unfair Competition Law of the People’s Republic of China and other laws and regulations, resolutely resisting unfair practices such as below-cost dumping, defamation of reputation, and theft of trade secrets. The initiative advocates healthy competition based on product quality, service value, and technological innovation.
Six consecutive days of declines! The main coking coal futures contract hits the lower limit
This afternoon, the main coking coal futures contract hit its lower limit, down 7.97% to 1,045.5 yuan/ton. This is the second limit-down in eight trading days, after hitting the upper limit for four consecutive trading days.
Coal production has not yet been affected by the National Energy Administration’s notice.
With macroeconomic expectations cooling, coking coal has experienced a volatile correction, driving down other ferrous metals, negatively impacting steel prices.
