The hottest manufacturing production accelerated i

2022-08-11
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In May, manufacturing production accelerated, and the pressure to reduce production capacity doubled

in May, manufacturing production accelerated, and the pressure to reduce production capacity doubled

China Construction machinery information

"at present, the whole economy is still difficult to support the rapid rise of heavy and chemical industry. In excess industries such as steel, B1 b2 thermal insulation materials can be used below 50 meters in the core, which is to let the market speak." Liu jiejiao, director of the Industrial Organization Research Office of the Institute of industry, Chinese Academy of Social Sciences, pointed out

people in a Tangshan Iron and steel plant were frightened. "Judging from the current price, the enterprise will soon lose money again." On June 1, he said about the steel price of that day

according to the statistics of some stations, the resumption of production of 108 blast furnaces nationwide in the third week of May alone has reached 937 million cubic meters of blast furnace area, with an average daily crude steel output of more than 290000 tons and an annual rate of more than 100 million tons of crude steel

however, the actual steel demand has not increased significantly. According to the calculation data released by Hebei Metallurgical Industry Association, the new order index of Hebei steel in May was 43.1%, down 22.4 percentage points month on month, the lowest level in five months. The pull of investment on the economy is weakened. The situation in the industrial sector is similar, that is, production has accelerated rapidly, but demand has not seen rapid growth

manufacturing production accelerated in May, and the pressure to reduce production capacity doubled

figures from the National Bureau of statistics and the China Federation of logistics and purchasing also showed that in May, the manufacturing PMI (purchasing manager index) was 50.1%, unchanged from the previous month, higher than the critical point for three consecutive months, maintaining a basically stable trend. Among them, the production index was 52.3%, a slight increase of 0.1 percentage points over the previous month, above 52.0% for three consecutive months. However, the new order index in May was 50.7%, down 0.3 percentage points from the previous month, and there was no similar increase in demand

Liu jiejiao, director of the Industrial Organization Research Office of the Institute of industry of the Chinese Academy of Social Sciences, pointed out that the supply side reform plans proposed at the central economic work conference last year, such as de capacity and de inventory, were not well implemented because of the rebound in steel prices. Now, after the price falls, the whole economy is back on the path of reform, such as production capacity and destocking

manufacturing production accelerated

statistics show that in May 2016, China's Manufacturing Purchasing Managers' index (PMI) was 50.1%, unchanged from the previous month and in the expansion range for three consecutive months. Among them, the production index in May was 52.3%, a slight increase of 0.1 percentage points over the previous month, and remained above the critical point, indicating that manufacturing production continued to grow steadily

in terms of specific industries, the current production of heavy industries such as steel, cement and nonferrous metals is still growing rapidly. Take iron and steel as an example. According to the PMI index of the iron and steel industry surveyed and released by the professional committee of iron and steel logistics of China Federation of things, it was 50.9% in May, down 6.4 percentage points from the previous month. It fell again after rising for five consecutive months, but it has been above the 50% boom and bust line for two consecutive months

among the main sub indexes, the production index was 51.7%, down from 60.7% in April, but still maintained the expansion trend

the actual steel expansion known in the 21st century economic report was more obvious in May. According to the information of an iron and steel station, the blast furnace operating rate in Tangshan, Hebei Province is about 93%, which is more than 10 percentage points higher than the low point in November and December last year in terms of volume

according to the statistics of another station, by the third week of May, the resumption of production of 108 furnaces nationwide had reached 937 million cubic meters of blast furnace area, with an average daily crude steel output of more than 290000 tons and an annual rate of more than 100 million tons of crude steel

in this regard, Zhang Lin, a senior analyst of China National Building Materials Group, believes that the statistical results of different caliber are different, but the record high daily average steel output in May is positive. According to Zhang Lin, the blast furnace operating rate in Tangshan at the end of May was 86.59%, an increase from 79.88% at the end of April. Similarly, the national blast furnace operating rate was 81.22% on May 28, 2016, an increase from the low point of 74.31% in February

"last year, some blast furnaces that stopped production in some places resumed work, but the actual demand is not so large. July and August are the off-season, and it may be difficult for steel enterprises." She said

the 21st Century Business Herald learned that some of the steel production stopped last year resumed production, mainly due to the sharp rise in steel prices. The rise in steel prices is mainly related to the accelerated investment in the real estate industry again and the accelerated investment in new railways, highways and airports with a speed of 0.01~500mm/min

for example, the national real estate investment increased by 7% in September, compared with 1% in the whole year of last year, and the growth rate has increased significantly, which has been rising for many months. The monthly infrastructure investment (excluding electricity) was 241.59 billion yuan, an increase of 19% year-on-year, 0.6 percentage points lower than that of the month, but still 4 percentage points higher than that of the month

"now that the steel price is falling, it is difficult for enterprises to stop production. Now China's steel production is still recovering, and the process is not over. Only a sharp fall in prices can force it to reduce production." Ma Zhongpu, former researcher of Angang Economic Institute, said

there is great pressure to reduce production capacity

the acceleration of steel production and the decline of steel prices are actually a microcosm of the need to accelerate the reduction of production capacity in the entire industrial field. However, the supply side reform proposed at the central economic work conference last year and the 13th five year plan this year to reduce production capacity, inventory, leverage, reduce costs and make up for weaknesses still needs to be accelerated

because according to the average daily output in the first four months of this year, the output of steel, cement, nonferrous metals and so on has continued to increase. For example, the average daily output of crude steel in March, April and March was 2.0178 million tons, 2.279 million tons and 2.314 million tons respectively. In the same period, the cement output was 3.979 million tons, 6.496 million tons and 7.209 million tons respectively, and the daily average output of non-ferrous metals was 127000 tons, 139000 tons and 142000 tons respectively

the output of the above industries may continue to increase in May. This runs counter to the reform task of reducing steel production by 100million-150million tons in five years

the rapid growth of heavy industry driven by real estate and infrastructure investment is difficult to sustain. Although the current real estate investment has accelerated, and the national railway, airport, highway and other large investment projects will reach 4.7 trillion from 2016 to 2018, the extent to which these can actually drive the growth of heavy industry is still uncertain

Liu jiejiao, director of the Industrial Organization Research Office of the Institute of industry, Chinese Academy of Social Sciences, pointed out that the current economy is still difficult to support the rapid rise of heavy chemical industry. "If the country wants to carry out the reform of reducing production capacity, it should be solved by the market. Whether it is the land, the plastic tensile testing machine has become more and more popular with customers in recent years, or the cost of environmental protection, it should be borne by enterprises and let the market regulate production capacity." Liu jiejiao said

According to the 21st Century Business Herald, the demand for orders in the steel industry has fallen sharply due to the acceleration of production. In May, the order index of the national steel industry was 44.3%, down sharply from 63.9% in April, entering the recession stage. The index of new steel orders in Hebei Province in May was 43.1%, down 22.4 percentage points month on month, the lowest level in five months. In May, PMI was 44.6%, down 10.5 percentage points month on month, returning to the contraction range, steel prices fell sharply, steel mills' profitability weakened, and the business environment deteriorated

in this regard, Liu Tao, an analyst at the Bank of communications, pointed out that the national manufacturing order index was declining in May, but production was accelerating, which reflected the increase in production capacity inventory. At present, the overall investment in fixed assets is still declining. The economy of this series is forced to disperse glass fibers with special dies, showing an L-shaped feature, which is unlikely to support the sharp increase in demand for steel and other products. At present, fiscal and monetary policies should be maintained to a certain extent, because private investment is slowing down significantly, the downward pressure on the economy is still great, and many reform measures such as tax cuts need to be implemented as soon as possible. In the short term, we should also prevent the slowdown of the growth rate of the service industry and ensure the steady and rapid growth of the entire economy

it is understood that the new order index of the national civil engineering construction industry increased the most significantly in May, reaching a high level of more than 53%, with an increase of more than 9 percentage points. This reflects that real estate and infrastructure investment is still expected to maintain a high speed

Zhao Qinghe, Senior Statistician of the National Bureau of statistics, also believes that since this year, the prices of important means of production in some circulation fields such as steel, nonferrous metals and chemical industry have risen continuously, with a large increase, but the situation of oversupply at home and abroad has not been substantially improved

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