Black futures open lower higher, steel prices local rebound

On July 31, the spiral 2410 contract opened low in the morning and closed down 0.12% at 3340 at noon. The futures 2410 contract opened lower in the morning session and closed 1.75% lower at 3472 at midday.

On July 31, the iron ore 2409 contract opened low in the morning and closed at 763.5, down 1.80%.

Coke 2409 contract opened at a low in the morning on July 31 and closed at 2047.5, down 1.21%; Coking coal 2409 contract opened lower in the morning and closed at 1461.5 at noon, down 1.15 percent.

The main screw contract price is 3340 yuan/ton, which is 160 yuan/ton higher than the Shanghai market 20mm grade 3 anti-seismic rebar price. Rebar prices in Wuhan, Taiyuan, Kunming, Xi'an, and other markets decreased by 10-30 yuan/ton, while prices in Fuzhou and Nanchang increased by 10-20 yuan/ton.

The Political Bureau meeting deployed the second half of the economic work, with macro policies continuing to be forceful and more powerful; The Ministry of Finance is considering advancing the consumption tax collection process and steadily allocating special bonds to local governments to accelerate issuance and use. Japanese media reported that Bank of Japan officials will discuss raising interest rates to 0.25% on Wednesday.

China's manufacturing PMI in July was 49.4%, slightly down 0.1 percentage points from the previous month; The business activity index of the construction industry in July was 51.2%, down 1.1 percentage points from the previous month; As of July 30, the fund arrival rate of sample construction sites was 62.05%, down 0.30 percentage points week on week.

In July, China's manufacturing and construction demand declined, with a decrease in the rate of capital inflow at construction sites and weak off-season steel demand. With expectations of increased domestic macro-control efforts, market pessimism has eased. The rebound in black futures has led to improved low-price resource transactions today. More steel mills are undergoing maintenance to reduce production, and the supply and demand pressure is expected to gradually ease. Market confidence recovery will depend on inventory digestion strength, and the short-term decline in steel prices has slowed down, indicating a stabilization.