China’s industrial output likely grew at slightly faster pace in July – analysts
DATA MACRO VIEWS & ANALYSIS
China’s industrial output likely grew at slightly faster pace in July – analysts
DATA MACRO VIEWS & ANALYSIS

China’s industrial output likely grew at slightly faster pace in July – analysts

 

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China’s industrial output likely grew by 4.5% in July from a year earlier, picking up slightly by 0.1 percentage point from June, according to the average estimate by economists at 15 domestic and overseas institutions surveyed by Yuan Talks.

The economists expect China’s industrial output to grew by 3.2% – 5.5% in July from a year earlier.

High-frequency data showed that China’s average daily crude steel output and steel rebar output rose by 6.9% and 12.2%, respectively, in July from a year ago, picking up by 10.4 percentage points and 21.2 percentage points from June, said CITIC Securities in a note.

The operating rate of blast furnace at steel mills in the city of Tangshan, a major steel production hub, stood at 56.4% in July, the operating rate of blast furnace at China’s 247 major steelmakers stood at 83.6% last month, while the operating rate of automobile semi-steel tire stood at 71.4%, all improving from the previous month, said CITIC.

The broker believes that China’s industrial output likely grew by about 5.5% in July from a year earlier, picking up from the 4.4% growth in June.

However, Nomura believes that China’s industrial output growth likely slowed to 4.1% year over year in July.

Some high-frequency data showed that China’s industrial production slowed in June, with cement producers’ operating rate falling to 46.7% from 47.7% in June, and the average daily coal consumption at power plants in the eight provinces in South China growing by 9.5% on year in July, slowing from the 18.3% growth in June, said Nomura.