The world expects China to stimulate the economy 0

2022-08-06
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The 100 million ton iron ore port pressing world expects China to stimulate the economy

the 100 million ton iron ore port pressing world expects China to stimulate the economy

China Construction Machinery Information

Guide: 100 million tons of iron ore was overstocked. On May 8, China's iron ore spot platform was launched, and the iron ore transaction entered a new era. However, applicable materials: rubber, plastic, film, adhesive, steel bar, glass, touch screen, textile, waterproof material, wire and cable, mesh rope, metal wire, metal bar, metal plate and other photovoltaic materials, as well as the garment industry, the trading platform with high expectations did not usher in the expected high-frequency trading. Since the launch, the number of transaction applications has decreased day by day, and the number of transactions has been less. 11 trading days only

3 is to strengthen industry guidance and policy implementation to evaluate the backlog of 100 million tons of iron ore. on May 8, China's iron ore spot platform was launched, and iron ore trading entered a networking era. However, the trading platform with high expectations did not usher in the expected high-frequency trading. Since the launch, the number of transaction applications has decreased day by day, and the number of transactions has been less. There were only 7 transactions in 11 trading days, of which there were no transactions in 7 trading days. The reason for the transaction is not only that major customers do not trust the new trading model. Now the steel price is falling. The real reason for the dismal transaction is the backlog of 100million tons of iron ore in various ports

In May, China's iron and steel output reached a new high. According to daily data, China's annual iron and steel production capacity has reached 746million tons, half of the world's output in 2011, equivalent to the world's iron and steel output in 2000. However, despite the record high iron and steel production capacity, many iron and steel customers have reduced their orders in the face of the rapidly declining profit margin, which further led to the sharp decline in iron ore demand. According to sources, many steel mills have asked for delayed shipment of iron ore and would rather pay liquidated damages for this. This led to a serious backlog of iron ore. By the time of press release, China's major seaports had a backlog of 100million tons of iron ore, most of which were rejected by customers in breach of contract

according to Reuters, China's metal warehouses are already full. In some iron ore import ports in China, iron ore piles up into hundreds of hills, each as high as three floors, and gradually piles up in places with "grain storage" signs, even on the street

unaccepted iron ore will be sold by the mine through bidding. In the past, an average of twoorthree ships of iron ore were tendered every week. Now it has risen to about five ships, and it is increasing in succession. This led to a rapid decline in the price of iron ore. by May 18, the price of iron ore with 62% content imported from Tianjin Port had fallen to US $131.3 per ton, the lowest since December 19 last year

not only iron ore

so far this year, China's refined copper imports have surged by more than 70% to 1.1 million tons, and the demand of Chinese manufacturers is expected to rise by up to 7%. Over the same period, iron ore imports increased by 6%, while traders estimated that domestic demand growth was much lower

copper is used in construction and electrical appliances, and iron ore is the raw material for steel production

as far as copper is concerned, Chinese traders seem to have misjudged the fundamental situation. They made a large number of purchases in November last year, and it is expected that demand will rebound after the Spring Festival

however, there is no large number of buyers. At present, China has as much as 1.4 million tons of copper. It is the highest since 2009. According to the data of Shanghai Futures Exchange, copper inventories have fallen by 3.5% in the past month, only half of the same period last year

"in the past, the turnover time of copper inventory was only one to two months, but now it is an average of six months or more." A manager of Shanghai Yangshan Port Bonded Warehouse said

excess inventory prompted some companies to sell copper on the London Metal Exchange (LME), which further depressed the price of LME index contracts

in the past, some investors used copper as collateral to borrow RMB to bet on the appreciation of RMB or invest in real estate. Now, copper as a financing tool, the "recyclable" logo granted by the regulatory authority is prominently printed on these cartons, which has lost its appeal

three month copper on the London Metal Exchange (LME) fell 9% in the past two weeks, hitting a four month low of $7625 per ton. Many traders estimate that it is only a matter of time before the $7500 or lower level is tested, which may trigger panic selling

in addition, the prices of coal, aluminum and oil are also falling at the same time. Factories in various countries that have been troubled by resource prices suddenly find that the prices of raw materials have plummeted - but they have also lost customers and no longer need abundant raw material supply

China affects the world

world resource prices have fallen because of China's weak economy. In April, the added value of China's industries above Designated Size rose by 9.3%, lower than the expectation of 12% and the weakest in three years; The total retail sales of consumer goods were also disappointing, with an increase of only 14.1%, lower than the expectation of 15.2%. As the largest resource consumer, China's prosperity is also that of most resource exporters - including Putin's Russia

therefore, any statement made by the Chinese government to stimulate the economy will receive a warm response from the world. On May 22, Chinese Premier Wen Jiabao stressed that steady growth should be given a more important position, and resource prices immediately rebounded. The main 1209 contract of Shanghai copper closed up 820 yuan to 55890 yuan/ton on Monday

however, in the past few years, China has repeatedly used Keynesian economic stimulus policies to inject too much money into the market. Any indication of financial or fiscal loosening may lead to uncontrollable inflation and a vicious increase in local debt. Therefore, we can not expect another "4trillion" investment plan in China immediately. On the eve of the explosion of the European debt crisis, this is not good news for the world economy. Russia and Brazil, which depend on resource exports, and India, which has suffered a collapse in foreign exchange payments, are afraid that greater economic and social changes will occur as a result

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