China’s industrial output grew 6 per cent in June from a year earlier, with a forecast of 6.5 per cent, up from 6.8 per cent. Among them, steel, cement, non-ferrous metal, automobile, car and crude oil processing volume and other key industries all slowed down. However, crude steel production per day once again set a new record.
China’s industrial output fell short of market expectations for the fourth consecutive month.
Data released by the national bureau of statistics on Monday showed China’s industrial output grew 6 percent in June from a year earlier, down from an expected 6.5 percent, down 0.8 percentage points from may and up 0.36 percent from the previous month.
In the january-june period, China’s industrial added value above the scale increased by 6.7% year on year, with the expectation of 6.8%, and the former value of 6.9%.
So far, the industrial added value above the scale has fallen short of market expectations for the fourth consecutive month. The year-on-year growth rate in the first two months of this year was only 7.2% higher than expected, and the rest of the year has disappointed the market.
Earlier, huang wentao, an analyst at citic construction investment, said he expected industrial value-added growth to slow in June, as indicators such as the PMI, coal consumption for power generation and steel blast furnace rate might fall.
The statistics bureau said that overall, the first half of the national economy continued the overall stable, stable and positive development trend.
Huatai macro li chao team commented that industrial output this year is no phenomenon of the “hops” at the end of last year, mainly due to the Dragon Boat Festival holiday this year in the mid to late June, and at the end of may – early June last year, so the number of business days in June this year is slightly less than the same period last year.
The team also said that in the midst of the added value of industrial structure, manufacturing value added rate + 6% year-on-year growth is down 0.6% from the previous value, electrical machinery and computer slowdown evident in the electronic industry, confirm inside and outside all have certain downward pressure.
Growth in real estate, infrastructure and other industrial goods slowed
Category, according to data points, compared with the previous month, June mining, manufacturing and electric power, heat, gas and water production and supply industry added value growth rate dropped across the board, year-on-year growth slowed to 2.7%, 2.7% and 2.7% respectively.
By sector, in June, 37 of the 41 major sectors saw year-on-year growth in added value. Among them, the agricultural food processing industry to grow 5.9%, a 0.1% drop in textile industry, chemical raw materials and chemical products manufacturing growth of 2.9%, 7.8% black metal smelting and rolling processing industry, non-ferrous metal smelting and rolling processing industry grows 4.0%, automobile manufacturing growth 14.0%, railway, shipbuilding, aerospace and other transportation equipment manufacturing industry grows 0.7%, electrical machinery and equipment manufacturing growth 3.8%, computers, communications and other electronic equipment manufacturing growth 10.9%, electricity, heat production and supply industry growth rate of 9.3%.
By product, 303 of the 596 products increased in June from a year earlier. Among them, steel, cement, 10 kinds of non-ferrous metals, automobile, car and crude oil processing capacity and other key industries all slowed down.
Steel increased 7.2% year on year. Cement was flat year on year; Ten non-ferrous metals increased by 1.9%. Ethylene increased by 7.6%. Car sales grew by 5.3%. Passenger cars increased by 12.0%; Electricity generation grew by 6.7%. Crude oil processing capacity increased by 8.0%.
It is worth mentioning that the total output of crude steel in China in June was 80.2 million tons, according to the statistics bureau. According to this calculation, the average daily output is 2.6733 million tons, which is higher than the previous record of 2.617 million tons set in May and 2.5287 million tons initially estimated by the steel association of junior middle schools this month.
That could be linked to historically high steel profits. Zhuo guiqiu, a senior analyst at jinrui futures, was quoted by Reuters last month as saying that steel mills are producing at full capacity in an attempt to make a handsome profit, with the average tonnage profit expected to reach 900 yuan nationwide.
Crude steel’s daily output has hit new highs this year. In march, cisa secretary-general liu zhenjiang has warned after the index hit a record high, steel social inventory and business inventories increased significantly, warning of iron and steel enterprises need to speed up production, to inventory, “don’t cry because it is short time expansion has good steel price blindly.”
Mr Liu said at the time that the gap of tens of millions of tonnes had been filled, a big difference from last year.
Post time: Jul-16-2018