August 2012 | Seamless Steel Tube & Pipe
Chinese mechanical markets drift : Asia Market Analysis
August is a seasonally quiet period in Chinese markets, as deals, especially for ordinary construction work, are stalled due to heavy rains.
Chinese steelmakers appear to have begun cutting production in response to weak demand, but without enthusiasm and with little effect. Daily output of crude steel in July 2012 is predicted to have been 3.5-4%lower than in June 2012. Regardless of the minor cuts, production in July 2012 was 8% higher year-on-year. A bolder reduction is needed to make inroads for excess stocks at tube and pipe mills. This applies for pipe and tube products and feedstock billet, as well as larger product categories.
August is a seasonally quiet period in Chinese markets, as deals, especially for ordinary construction work, are stalled due to heavy rains. This year, the seasonal slowdown has been superimposed on global economic sluggishness. Although China’s GDP is still increasing at a relatively high rate, some sectors in the Chinese economy there are scarcely moving at all. Unfortunately, tube and...
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