July.31st Chinese market recap- Chinese latest PMI @ 49.2 which dropped 1.1Pt and below the prosperity line. We can see all the related data is shrinking and summer market is not good. Steel futures keep adjustment on weekend and coke side is falling faster than others. Most items are collecting orders and mills refreshed daily base 10-20rmb lower while bids are still slow. Export market is stuck then most items are hard to match and some PPGI and coated small orders are sold. Local billet index down 10rmb and steel export index down 3usd. Raw materials are weaker more in IO and coke may face continuous adjustment soon. Brief summary of July: It is really a tough month for steel and market lacks workable bids from most markets and slow demand in summer gave more pressure on supply then inventory is negative. Global messy situation may give uncertainty on raw materials while steel trade is becoming risky to more destinations. Good luck in August !
