[SMM Steel Market Morning News] 11 departments issued "Circular on several measures to stabilize and expand Automobile consumption" * in April, the PMI of China's manufacturing industry was 50.8%.

Thursday, April 30, 2020

Breakfast news

Rising factor

1.11 Circular on measures to stabilize and expand Automobile consumption issued by the Department

The National Development and Reform Commission, the Ministry of Industry and Information Technology, the Banking and Insurance Regulatory Commission, and other 11 departments issued the Circular on several measures to stabilize and expand Automobile consumption, encouraging financial institutions to actively carry out automobile consumption credit and other financial business. By appropriately lowering the down payment ratio and loan interest rates, extending the repayment period, and other means, we will increase support for personal automobile consumption credit and continue to release the potential of automobile consumption. The move will boost car consumption and boost the current sluggish car market. At the same time, from the SMM iron and steel downstream PMI research situation, driven by the policy side, the automobile industry does have a gradual recovery phenomenon. no, no.

2. Passenger Association: passenger car retail growth slows down in the four weeks before April

Overall retail sales in the passenger car market rebounded relatively fast from April 1 to 4 (1-25). Retail sales averaged 35300 vehicles a day in the first four weeks, down 1.6 per cent from a year earlier. The recovery was clear in April, down 42 per cent from a year earlier in the first four weeks of March. The market rebound in April shows that retail sales in the car market have improved steadily under the influence of the epidemic.

Falling factor

1. Global economic downside risks increase and multinational economic data underperform

Commerce Department: real gross domestic product fell at an annualized rate of 4.8% in the first quarter of this year, the biggest decline since the fourth quarter of 2008. Mr Ratner, a former US Treasury adviser, said the US GDP fell at an annualised quarterly rate in the first quarter for the first time in six years, but that could be just the tip of the iceberg, with GDP growth of about-40 per cent in the second quarter. On the other hand, the Asia-Pacific Economic Cooperation secretariat says the APEC regional economy is expected to contract 2.7 percent in 2020 as a result of the outbreak, Japanese media said. That would be the biggest drop since 2009. In addition, Germany expects GDP to shrink by 6.3% in 2020 and 5.2% in 2021.

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