Statistics

China steel PMI rises to 16-month high in August on strong production

Date Aug 31 2017 17:44:09

BEIJING (Reuters) - Activity in China's steel industry expanded in August at the fastest pace since April 2016, industry data showed on Thursday, reflecting high levels of production and low inventory.

The Purchasing Managers' Index (PMI) for the steel sector rose to 57.2 in August from 54.9 in July, data from the China Federation of Logistics & Purchasing (CFLP) showed, holding for a fourth month above the 50-point mark that separates growth from contraction.

The production index rose to 61.7 from 58.1 in July, expanding for the seventh consecutive month, while the new orders index rose to 66.6 from 63.1 in July.

The new export orders index dropped to 45 from 49.8, reflecting higher prices at home.

"We expect domestic steel production and sales to remain strong in September, with market prices remaining elevated," the CFLP said.

Inventories of finished goods remained below the 50-point mark, but edged up to 42.1 from 41.6 in July.

Steel futures prices <SRBcv1> have risen about 9.2 percent so far this month.

 Source:Reuters

Edited by SHMET

China August official factory PMI rises to 51.7; beats expectations

Date Aug 31 2017 17:43:39

BEIJING, Aug 31 (Reuters) - Growth in China's manufacturing sector unexpectedly accelerated in August, defying expectations that the world's second-largest economy will start to cool as borrowing costs rise and regulators clamp down on riskier lending.

    The official Purchasing Managers' Index (PMI) released on Thursday stood at 51.7 in August, the China Logistics Information Center said on its website.

    That was up from the previous month's 51.4 and well above the 50-point mark that separates growth from contraction on a monthly basis.

    Analysts surveyed by Reuters had forecast the reading would come in at 51.3, easing only marginally from July.

    China posted stronger-than-expected economic growth of 6.9 percent in the first half, fuelled by a year-long construction boom, resurgent exports and robust retail sales.

    But softer July data reinforced views that growth will slow slightly in the second half due to higher financing costs, numerous regulatory clampdowns and signs of moderation in the red-hot housing market. 

source:Reuters

Edited by SHMET

China Molybdenum's moly concs output in H1 up 2% on year on better demand

Date Aug 28 2017 16:51:41

China Molybdenum, a top molybdenum miner and producer headquartered in central China's Henan province, posted a 1.9% year-on-year increase in its molybdenum concentrates output to 8,161 mt for January-June, on the back of improved demand, according to the company's interim report released on Monday.

     China Molybdenum's output was better than expected at the beginning of this year when the company had targeted to keep its molybdenum output flat from last year. The company produced 8,008 mt of molybdenum concentrates in the first half of 2016. And both volumes are calculated in 100% molybdenum content.

     Molybdenum concentrates and ferromolybdenum prices in China and molybdicoxide prices in the global market recovered substantially in H1 2017 because of less supply along with better demand in these two markets, China Molybdenumexplained in its interim report. The company is listed on both the Hong Kong and Shanghai stock exchanges.

     For H1 2017, China's molybdenum concentrates price rebounded 29.5% year on year to about Yuan 1,115/mt ($168/mt) and ferromolybdenum price went up21.9% year on year to Yuan 78,500/mt, and the global moly oxide price went up29.4% year on year to $7.96/lb, the company noted.

     China Molybdenum is confident that demand will recover from the summer lull over the rest of the year and further strengthen both domestic and global prices, according to its report. 

     Other than molybdenum, the company has also diversified into tungsten ,cobalt, niobium and phosphate mining projects overseas in the past few years, which together contributed to the 63.1% year-on-year surge in the company's net profit to about Yuan 835 million for H1 2017.

     As for copper, China Molybdenum expects the global oversupply to ease further in the coming months, developing towards a balanced market. Its own copper output from its 80%-held Australian mining subsidiary NPM reached18,910 mt in pure metal, down about 0.8% on year.

 Source:Reuters

Edited by SHMET

China to shut 6,000 non-coal mines by 2020 to improve safety

Date Aug 28 2017 11:29:53

BEIJING, Aug 26 (Reuters) - China will shut 6,000 non-coal mines in an effort to reduce mining accidents and deaths by 2020, the State Administration of Work Safety said in a five-year plan.

    Beijing will seek to reduce major accidents by 15 percent by 2020 from 2015 levels in the non-coal mining sector, the work safety body said in a statement on Friday.

    More than 500 people died in non-coal mining accidents in 2015. The toll has fallen by more than 50 percent since 2010.

    "While mining companies are under transformation, some of them don't have sufficient funding and manpower to keep safety running in mines, which leaves high safety risks," the work safety body said in a statement on Friday.

    Under the plan, China will improve safety legislation and intensify mine inspections.

    Authorities say there were some 37,000 illegal non-coal mines in 2015.

    China has vowed to accelerate closing small-scale coal mines with an annual production capacity of 90,000 tonnes or less. 

Source:Reuters

Edited by SHMET

China July industrial profits rise at slowest pace in 3 months

Date Aug 28 2017 11:28:57

BEIJING, Aug 27 (Reuters) - Earnings growth for China's industrial firms cooled in July after accelerating for three straight months, reinforcing expectations the economy will slow over coming quarters as higher lending costs and property market curbs bite.

    Profits earned by China's industrial companies in July rose 16.5 percent from a year earlier to 612.7 billion yuan ($92.18 billion), slower than the previous month, the statistics bureau said on Sunday.

    That was the slowest rate of growth since profits rose 14.0 percent in April. 

    Profit growth slowed in July because some companies halted production due to especially high temperatures, He Ping of the National Bureau of Statistics bureau said in a statement along with the data release. 

    For the first seven months of the year, the firms notched up profits of 4.25 trillion yuan, a 21.2 percent jump from the same period last year and a touch slower than the 22.0 percent annual growth in the January-June period.

    Earnings for the industrial sector were boosted by a year-long, government-led construction spree, which fuelled demand and prices for building materials.

    Government efforts to shut older, heavily polluting mines and factories have given commodity prices fresh impetus in recent weeks. 

    Strong earnings, in turn, have opened the way for fresh investment, and given the country's long ailing "smokestack" industries more cash flow which could, in theory, be used to start paying down a mountain of debt.    

    Aluminum Corp of China Ltd (Chalco)  601600.SS   2600.HK  reported on Aug. 17 that its six-month net profit rose more than tenfold year-on-year as it cashed in sky-high aluminium prices.

    A day later, China's top state-run aluminium smelter said it will be making further investment in raising output in the second half of the year. 

    The manufacturing sector, which accounts for 88 percent of industrial profits, saw profit growth of 18.1 percent in the first seven months, trending down only slightly from 18.5 percent in the first half.

    STALLING OUT

    But analysts say economic growth is starting to slow as measures to cool heated property prices and clamp down on riskier forms of lending put the brakes on activity.

    Beijing's efforts to reduce debt have pushed up lending rates, signalling tighter margins and tougher operating conditions for firms as debt servicing costs go up - a sign of slowing earnings growth over coming months.

    In addition to slower profit growth, Sunday's data showed profit margins and account receivables days outstanding weakened slightly in July after improving for the last two months. Industrial firms' net profit margin fell to 6.09 percent in July from 6.11 in June. 

    Weaker performance in the industrial sector is in line with July economic data that was mostly weaker than expected, after forecast-beating GDP growth of 6.9 percent in the first half.

    At the end of July, industrial firms' liabilities were 6.6 percent higher than a year earlier, compared with a 6.4 percent increase at the end of June.

    Profits at China's state-owned firms were up 44.2 percent at 927.4 billion yuan in January-July, compared with a 45.8 percent rise in the first six months. 

    The data covers large companies with annual revenue of more than 20 million yuan from their main operations.  

Source: Reuters

Edited by SHMET
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