The China Securities Regulatory Commission (CSRC), the country’s governing body of all futures exchanges, has granted its approval, allowing three commodity exchanges to launch options contracts for six industrial products over June-August for trading, according to its official post on June 12.
The declines in China’s total fixed asset investment (FAI) and the funding in the property market slowed further by May, with the former down 6.3% on year over January-May as against the 10.3% on-year fall in the first four months, and the latter dipping 0.3% as against the 3.3% fall by April, according to the latest data from China’s National Bureau of Statistics (NBS) on June 15.
After the robust performance in April and May, China’s domestic steel demand may step onto a down slope starting June, and 2020 may end with a 4% on-year decline in total steel consumption, while the supply glut will be even more outstanding against the retreat in consumption in H2, Xu Xiangchun, Mysteel’s senior steel analyst, warned the market at the 3rd Bohai Economic Rim Steel Conference 2020 on June 3, the first large-scale virtual conference that Mysteel held with over 1,000 dial-ins and over 50,000 views.
As part of the efforts to rescue the national economy from the negative impact of the COVID-19, China’s local authorities issued a total of Yuan 1.3 trillion ($182.6 billion) government bonds in May, or a record high month, to ensure adequate funding in infrastructure construction, according to a post by China’s Ministry of Finance (MoF) on June 3.
Nippon Steel, Japan’s largest integrated mill, has delayed the banking of No.2 furnace at its Kimitsu works near Tokyo by about a month until mid-June, as it has not been able to fulfill the signed contracts by mid-May, the company’s spokeswoman explained on June 4.
Japan’s ordinary carbon steel exports fell by 23.2% on month to about 1.8 million tonnes for April, according to the data released by the Japan Iron & Steel Federation (JISF) on May 29, which might not have fully reflected the negative impact of the COVID-19 on the steel market, a JISF official admitted on June 1.
Japan’s Purchasing Managers’ Index (PMI) for the country’s manufacturing industry fell to 38.4 for May, a new low since March 2009 or having declined for the three month mainly due to the impact of the COVID-19 on the series of industrial activities, according to the release from au Jibun Bank Corporation on June 1.
Japan’s eight major automakers posted their total production down 61% on year in April to 921,255 units from all the plants worldwide, according to their individual releases, mainly as the pandemic had affected their operations across the world including Asia, Europe, and North America, according to market sources.