[SMM analysis] the effect of off-season still exists on the consumption differentiation of galvanized sectors.

SMM7 March 19:

According to SMM research, galvanized pipe, as the end product rose less than the raw material, galvanized pipe enterprise profits have been suppressed, some areas have been in the range of production losses, only some enterprises have been able to retain profits because of the large reserve capacity, but as a whole, the production of galvanized pipe enterprises has dropped compared with the previous period, and the production schedule has declined in July.

In terms of galvanized structural parts, Hebei enterprise scaffolding is still a strong support. due to the low regional scale and low threshold for investment and production, the output of scaffolding has increased significantly, but there may be a trend of surplus. The production profits of enterprises in North China have narrowed to about 60 yuan / ton. The infrastructure sector orders vary among regions due to the different landing time of the middle section of the project. according to SMM research, Shandong enterprises reflect that electric power industry projects will be landed one after another at the end of the month, while large-scale projects in Chongqing have not yet landed.

In terms of galvanized sheet, according to the data released by the macro structure, the growth rate of passenger car production and sales declined slightly in June compared with the same period last year, on the one hand, due to a high base in the same period last year, and on the other hand, because its consumption was overdrawn by early promotion and other policy support. from July 1 to 12, due to the impact of the college entrance examination and the rainy season, passenger car retail performance was poor, down 9% from the same period last year and 15% month-on-month compared with June. The wholesale performance remained stable, up 12% from last year, down 8% from the previous month, and may be weaker in July than in June as a whole. In terms of shipping, as of July 17, the BDI index was 1710, down 100 points, or 5.52%. The BDI index has rebounded sharply since June, pointing to a pick-up in import and export trade and nervous ships after the lifting of the blockade. In terms of real estate, the growth rate of real estate sales in 35 cities dropped to 2.3% in the first 14 days of July, while the stock-to-sales ratio in big cities also rebounded from the previous period, rising to 34.9 weeks, while the growth rate of land transaction area in 100 cities rose slightly last week. it is also due to the return of funds brought about by housing enterprises after the rebound in sales, and on the whole, the real estate market is still picking up compared with the previous period.

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