Iron ore market report for July
2013-08-12 16:37:15 【Print】
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1. Financial review
1.1 The data jointly announced by the State Statistic Bureau of China and the Association of Logistics and Purchase in China noted that, in July, 2013, the PMI in China reached 50.3%, slightly increased by 0.2% month on month. Among them, manufacture production, new orders and employees increased, and the production index was 52.4%, up by 0.4% compared to June.
New order index reached 50.6%, increasing by 0.2% month on month, but the employee index increased by 0.4% month on month to 49.1%, staying at below 50% for 14th consecutive months. New order index and import index, reflecting foreign trade, stayed at 49.0% and 48.4% respectively, increasing by 1.3% and 0.5% month on month and staying at below 50%. Manufacturing industry occupies 40% of GDP in China, and higher new order and export order indexes indicated the recovery of this industry.
1.2 Ending on July 28, the RMB loan in four major banks, ICBC, ABC, BOC and CCB increased by RMB196 billion in July, reducing by RMB26 billion compared with the previous week. Furthermore, data indicated that four major banks released RMB168 billion of loan in the first month of July considering the weak growth and loan surging in commercial banks in the end of the month.
The seasonal shrinkage of deposit was behind credit crunch. After thousands billion yuan of deposit reduction early this month, the four largest banks also saw weak growth of deposit with RMB60 billion of improvement in the fourth week. Ending on July 28th, the deposit growth was minus RMB950 billion. After five months’ of suspension, central banks restarted RMB17 billion of reverse repurchase on July 30th, injecting liquidity to the market, and reflecting the intention to stabilized the tight liquidity in the end of this month.
1.1 The data jointly announced by the State Statistic Bureau of China and the Association of Logistics and Purchase in China noted that, in July, 2013, the PMI in China reached 50.3%, slightly increased by 0.2% month on month. Among them, manufacture production, new orders and employees increased, and the production index was 52.4%, up by 0.4% compared to June.
New order index reached 50.6%, increasing by 0.2% month on month, but the employee index increased by 0.4% month on month to 49.1%, staying at below 50% for 14th consecutive months. New order index and import index, reflecting foreign trade, stayed at 49.0% and 48.4% respectively, increasing by 1.3% and 0.5% month on month and staying at below 50%. Manufacturing industry occupies 40% of GDP in China, and higher new order and export order indexes indicated the recovery of this industry.
1.2 Ending on July 28, the RMB loan in four major banks, ICBC, ABC, BOC and CCB increased by RMB196 billion in July, reducing by RMB26 billion compared with the previous week. Furthermore, data indicated that four major banks released RMB168 billion of loan in the first month of July considering the weak growth and loan surging in commercial banks in the end of the month.
The seasonal shrinkage of deposit was behind credit crunch. After thousands billion yuan of deposit reduction early this month, the four largest banks also saw weak growth of deposit with RMB60 billion of improvement in the fourth week. Ending on July 28th, the deposit growth was minus RMB950 billion. After five months’ of suspension, central banks restarted RMB17 billion of reverse repurchase on July 30th, injecting liquidity to the market, and reflecting the intention to stabilized the tight liquidity in the end of this month.
