Latest trends in China's hardware industry

Since the beginning of the year, China's hardware industry position continues to decline, until the end of August once near close to its lowest level since 2006, China's hardware industry trading intention has dropped to freezing point, but the first week of September hardware products position jump by 8%, the highest volume hit a year, the metal products industry in our country long-term depression trading begins to release in the metal products price rebounded sharply.The interaction between capital and price in China's hardware industry can easily lead to the inertia of price in the new direction of operation.By contrast, Shanghai and the United States have remained relatively active.

According to futures Daily news, recent market risk appetite recovery, positive policies at home and abroad to boost market confidence, metal products market trading sentiment rebound and other factors are expected to support the metal products price to maintain the current strong, and further expand the space.LME hardware products rose for the third straight day on Tuesday, hitting a four-month high.

On the Chinese side, the interest rate and reserve requirement reduction measures adopted in the middle of the year are still waiting for the effect of the policy. However, the establishment of lanzhou New Area and the approval of nearly one trillion infrastructure projects including urban planning and highways are more evidence of the positive efforts made by the authorities to achieve the goal of "stable growth". The follow-up policies are worth looking forward to.

In terms of inventories, total inventories of hardware products on the world's three largest exchanges have fallen 25 percent year-to-date to around 413,000 tons.Inventories at LME warehouses in South Korea plunged by 14,675 tonnes, or more than 19 per cent, on the first Sunday of September.The decline in Korean warehouse stocks is not reflected in the increase in inventories elsewhere, meaning physical demand is starting to show.

In terms of import and output, China imported 355,856 tons of unforged hardware products and hardware products in August, with a year-on-year growth of 4.54%, while the output of refined hardware products in the same period was 511,000 tons, with a year-on-year decrease of 3.4%. The lower year-on-year data means that the overall supply pressure is weakened.At present, the stock of processing enterprises is generally low, with the strengthening of the price of hardware products, the future stock demand will increase significantly.

Latest trends in China's hardware industry!In Europe and the United States, the U.S. economy is showing signs of recovery.Us hardware employment rose by 60,000 in August, well below expectations of 125,000, greatly boosting expectations for QE3.In addition to the United States, the negative influence of Central Europe is also waning, while the hardware industry is also turning a new corner.Markets responded positively to Draghi's "unlimited sterilisation" plan, and German Chancellor Angela Merkel's support largely predicted a positive ESM ruling by the German Constitutional Court.