Inventory of the hottest production capacity fell,

Production capacity and inventory both fell, and the steel market reversed in the off-season

the economy steadily rebounded, structural reform deepened, physical vitality increased, industrial optimization and upgrading, infrastructure investment was high, the short board effect increased, enterprise efficiency improved, and market confidence increased. Since June, the steel market has surged, exports have continued to decline, demand is tepid, cost support has weakened, the deadline for strip steel has arrived, futures have surged, market confidence has increased, and spot prices have continued to rise. In July, the domestic steel market is expected to reverse, the economy is stable and good, investment continues to optimize, reform is accelerated, real estate is gradually returning, and infrastructure investment. The experimental machine adopts the internationally popular host structure Imported servo speed regulation system and electromechanical (Panasonic, Japan), imported reducer (Germany) and imported ball screw (Germany) have accelerated, the manufacturing industry has stabilized, the ore price has continued to fall, the profit of steel enterprises has improved, the willingness to increase production has not decreased, the removal of production capacity has continued, the steel inventory has fallen, the traditional off-season is not light, and the steel market has strengthened

first, the economy rebounded steadily

according to the monitoring data, the growth rate of fixed asset investment in 2017 was 8.6%, down 0.3 percentage points from the month. The growth rate of M1 in May 2017 was 17.00%, 1.54 percentage points lower than that in April. The growth rate of M2 in May was 9.6%, 0.86 percentage points lower than that in April. In May, RMB deposits increased by 1.11 trillion yuan, a year-on-year decrease of 723billion yuan

the fixed asset investment increased steadily in the month, the investment structure continued to improve, the growth rate of manufacturing investment increased, industrial optimization continued to upgrade, and new drivers grew rapidly. According to the data of the National Bureau of statistics, the monthly manufacturing investment was 6418.3 billion yuan, with a year-on-year increase of 5.1%. The growth rate increased by 0.2 percentage points over the month and 0.5 percentage points over the same period last year; The contribution rate of manufacturing industry to the growth of total investment was 19.6%, driving the investment growth by 1.7 percentage points

since this year, the investment and operation situation of equipment manufacturing industry has been significantly better than that of last year. The investment completed in January was 27514 billion yuan, with a year-on-year increase of 8.9%. The growth rate was 1 percentage point higher than that of last month and 2.6 percentage points higher than that of the same period last year; Accounting for 42.9% of the total manufacturing investment, an increase of 1.5 percentage points over the same period last year; The contribution rate to the growth of manufacturing investment is as high as 71.5%, which has become an important guarantee for the smooth operation of manufacturing investment. In January, the investment in high-tech manufacturing industry was 909.5 billion yuan, with a year-on-year increase of 22.5%. The growth rate was 17.4 percentage points higher than all manufacturing investment and 13.9 percentage points higher than all investment; It accounted for 14.2% of all manufacturing investment, an increase of 2 percentage points over the same period last year. In January, the investment in technological transformation in the manufacturing industry was 2873.2 billion yuan, with a year-on-year increase of 10.2%. The growth rate was 2.3 percentage points higher than that of the month, and 5.1 percentage points higher than that of all manufacturing investment; The proportion of total manufacturing investment was 44.7%, an increase of 2 percentage points over the same period last year. The equipment investment in the manufacturing industry increased by 10.6%, 5.5 percentage points higher than the total manufacturing investment; It accounted for 36.5% of all manufacturing investment, an increase of 1.8 percentage points over the same period last year. Since this year, investment in high energy consumption manufacturing has continued to decline. In January, the investment in high energy consumption manufacturing industry decreased by 2%, with a decrease rate of 0.3% and 0% higher than that in January, the first quarter and the same period last year respectively. If lubricant (such as engine oil) is applied to the end face of the sample 4 and 0.5 percentage points; It accounted for 22% of all manufacturing investment, down 1.6 percentage points from the same period last year

monthly infrastructure investment was at a high level, and the investment in the short board sector increased rapidly. According to the data of the National Bureau of statistics, in January, the infrastructure investment was 4230.6 billion yuan, an increase of 20.9% year-on-year, and the growth rate was 0.9 percentage points higher than that of the same period last year; Accounting for 20.8% of the total investment, an increase of 2.2 percentage points over the same period last year; The contribution rate to total investment growth was 45.6%, driving investment growth by 3.9 percentage points. In January, investment in ecological protection and environmental governance increased by 44.6%; Investment in public facilities management increased by 25.2%; Investment in road transport increased by 23.1%; Investment in water management increased by 14.7%. In terms of regions, infrastructure investment in the central and western regions increased by 22.9% in January, 2 percentage points higher than all infrastructure investment; Accounting for 57.5% of all infrastructure investment, an increase of 1 percentage point over the same period last year

second, the ore price continued to fall

according to the monitoring data, the domestic iron concentrate in June 2017 was 605 yuan/ton, down 10 yuan/ton month on month. In June 2017, domestic coke was 1572.5 yuan/ton, down 58.75 yuan/ton month on month. According to customs data, the average price of imported ore in May 2017 was $73.39/ton, down $9.99/ton month on month. In June 2017, Platts' 62% iron ore index was 57.2, down 4.35 month on month

in the first half of this year, the iron ore market experienced a high diving market, with a decline of up to 40%. However, recently, due to the rising profits of domestic steel mills, the iron ore is picking up the upward trend again, and market confidence has been greatly boosted. In the short term, the iron ore market will fluctuate around $60, but the supply pressure of the iron ore market remains unabated. In general, the iron ore price is under the game of long and short factors, The downward pressure on ore prices is still great

III. gradual return of real estate

according to the monitoring data, the construction area of real estate development enterprises is 6714.38 million square meters per month, with a year-on-year increase of 3.1%, and the growth rate is the same as that of the month. Among them, the residential construction area was 4581.16 million square meters, an increase of 2.6%. The new construction area of houses was 651.79 million square meters, an increase of 9.5%, and the growth rate fell by 1.6 percentage points. Among them, the new construction area of residential buildings was 469.03 million square meters, an increase of 15.1%. The completed area of houses was 339.11 million square meters, an increase of 5.9%, and the growth rate fell by 4.7 percentage points. Among them, the completed residential area was 242.32 million square meters, an increase of 3.4%

the sales area of commercial housing in the month was 548.2 million square meters, with a year-on-year increase of 14.3%, and the growth rate was 1.4 percentage points lower than that in the month. Among them, the sales area of residential buildings increased by 11.9%, the sales area of office buildings increased by 38.3%, and the sales area of commercial and business houses increased by 29.6%. The sales volume of commercial housing was 4363.2 billion yuan, an increase of 18.6%, and the growth rate fell by 1.5 percentage points. Among them, residential sales increased by 15.3%, office building sales increased by 37.4%, and commercial business housing sales increased by 39.0%

in the first half of the year, the property market regulation policy reached the strictest level in history, and the regulation effect is showing. Since the "March 17" new deal, 52 cities or regions have issued regulation policies, with a total of 120 purchase restriction policies and 162 loan restriction policies; 15 cities have implemented the standard of "housing and loan recognition" for second home loans; Some cities have increased their policies for 3 or 4 consecutive rounds. Since March 17, Beijing has issued nearly 20 regulatory policies; There are 30 cities and one province (Hainan) implementing the "sales restriction" policy. The effect of this round of regulation, which has lasted for three months, is emerging. At present, house prices in some hot cities, such as Beijing, Shanghai, Hefei, Suzhou and other places have begun to fall. The increasing regulation measures have caused a continuous decline in sales growth, and real estate investment will gradually return to normal

IV. infrastructure investment accelerated

according to the monitoring data, the growth rate of domestic infrastructure investment in May 2017 was 13.1%, 4.33 percentage points lower than that in April. Among them, the growth rates of investment in electricity, transportation and water conservancy environment were 5.26%, 11.26% and 17.95% respectively, up 6.5%, down 3.57% and down 10.62 percentage points from April

infrastructure investment continues to accelerate. According to the statistics of the Ministry of transport, according to the statistics of the Ministry of transport, the fixed asset investment in roads and waterways reached 700.3 billion yuan in January, with a year-on-year increase of 27.8%, continuing to maintain a rapid growth trend. Among them, the investment in highway construction was 649.2 billion yuan, a year-on-year increase of 32.7%, and 79000 kilometers of newly reconstructed rural roads; The investment in water transportation construction was 41.5 billion yuan, a year-on-year decrease of 6.1%

investment in railway construction increased steadily. According to the statistics of China Railway Corporation, the national railway fixed asset investment in 2017 reached 217.898 billion yuan, an increase of 2.5% year-on-year; Among them, the investment in fixed assets of the national railway reached 210.067 billion yuan, but with the higher and higher requirements of downstream users for batteries, capacitors, etc., an increase of 2.4% year-on-year

investment in power construction increased steadily. According to the statistics of the national development and Reform Commission, in 2017, the investment in national power projects was 179.4 billion yuan, an increase of 9.5% year-on-year. The investment in power supply projects of major power generation enterprises in China was 76.7 billion yuan, a year-on-year decrease of 15.1%. Among them, the completed investment in hydropower was 16.8 billion yuan, a year-on-year decrease of 5.8%; The investment in thermal power was 26.2 billion yuan, a year-on-year decrease of 4.3%; The investment in nuclear power was 12.6 billion yuan, a year-on-year decrease of 25.1%; Wind power completed an investment of 14.2 billion yuan, a year-on-year decrease of 25.5%. The completed investment in clean energy such as hydropower, nuclear power and wind power accounted for 65.9% of the completed investment in power, down 3.8 percentage points from the same period last year

in order to stabilize growth, the national development and Reform Commission continues to strengthen project approval. According to the statistics of the national development and Reform Commission, in May, the national development and Reform Commission approved a total of 8 fixed asset investment projects, with a total investment of 51.8 billion yuan

v. the manufacturing industry is stabilizing

according to the monitoring data, the manufacturing PMI index in May 2017 was 51.7%, up 0.5 percentage points from the previous month. The new order index was 53.1%, up 0.8 percentage points from the previous month. The new export order index was 52.0%, up 1.3 percentage points from the previous month. The production index was 54.4%, up 1 percentage point from the previous month. The raw material inventory index was 48.6%, up 0.1 percentage points from the previous month. The supplier delivery time index was 49.9%, down 0.3 percentage points from the previous month. The purchase volume index was 52.5%, an increase of 1 percentage point over the previous month. The purchase price index was 50.4%, up 0.9 percentage points from the previous month. The import index was 51.2%, up 1.2 percentage points from the previous month. The finished goods inventory index was 46.3%, down 0.3 percentage points from the previous month. From the perspective of PMI, finished product inventory index, employee index and supplier delivery time index decreased slightly, while the other 10 indexes increased. Among the rising indexes, most of them increased by close to or more than 1 percentage point. The PMI index rebounded slightly in June, indicating that the steady and positive trend of economic growth is further clear. The order index has rebounded, reflecting that domestic and foreign market demand continues to recover and the export situation continues to improve; The inventory index of finished products fell and the ex factory price index rebounded, indicating that the product sales situation was improving; Raw material inventory, purchase volume, import and other indexes increased, reflecting that the production preparation activities of enterprises are relatively active. According to comprehensive research and judgment, the future economic growth will show a steady upward trend

VI. both steel mills and social inventories have fallen

since June, the in plant steel inventory of domestic large and medium-sized steel enterprises has continued to decline. According to the statistical data of China Steel Association, the inventory of domestic key steel enterprises in mid May 2017 was 13.2975 million tons, a decrease of 212700 tons or 1.57% compared with mid May. At the same time, domestic social inventory of steel continued to decline. According to the monitoring data, at the end of May 2017, the domestic social inventory of steel was 8.2212 million tons, a month on month decrease of 9.11% and a year-on-year increase of 5.54%; Among them, 929100 tons of wire rod, with a month on month decrease of 10.4. The first set of production line is planned to be put into trial production at the end of June 2018; The second production line is expected to complete equipment installation by the end of March 2019, with a year-on-year increase of 13.48%; Threads were 2.9915 million tons, down 9.89% month on month and up 0.57% year on year; 2.065 million tons of hot rolling, a month on month decrease of 10.62% and a year-on-year increase of 10.50%; Cold rolling was 1050500 tons, with a month on month decrease of 0.94% and a year-on-year decrease of 10.48%; The medium plate was 955500 tons, with a month on month decrease of 10.86% and a year-on-year increase of 20.03%

to sum up, in July, the domestic steel market is expected to reverse, the economy stabilizes and improves, the investment is constantly optimized, the reform is accelerated, the real estate gradually returns, the infrastructure investment is accelerated, the manufacturing industry stabilizes, the ore price continues to fall, the profits of steel enterprises improve, the willingness to increase production does not decrease, the capacity removal continues, the steel inventory both drops, the traditional off-season is not light, and the steel market shocks