Mineral prices are showing signs of stabilization

National Bureau of Statistics issued PPI data on the 10th. The ex-factory price of industrial producers fell by 4.8% year-on-year in February, a decrease from the previous month. From the perspective of specific industries, the most upstream mining industry has become the hardest-hit areas for falling prices of industrial products. For example, the prices of mining, raw materials, and processing industries fell by 18.8%, 8.9%, and 3.3% respectively in the first two months, indicating that the profits of industrial companies continue to be The middle and lower reaches of the chain transfer.

However, the ore price showed signs of stabilization.

According to data from the National Bureau of Statistics, the coal mining and washing industry fell by -13% in the prices of major industrial manufacturers in January and February, and their downstream electricity, heat production and supply prices were flat, indicating that the profits of the industrial chain have turned to downstream electricity companies. .

From January to February, international oil prices bottomed out, but the oil and natural gas extraction industry prices still dropped by -37.6% year-on-year, the oil processing industry, coking and nuclear fuel processing industries in the middle reaches dropped by -23.3%, and the downstream chemical raw materials and chemical products manufacturing industry, The chemical fiber and rubber and plastic products industries fell -7.0%, -8.8% and -3.2%, respectively, which also indicates that profits are still shifting to the back end.

Stronger US dollar and lower international oil prices dragged down other metals. In the iron ore mining industry, the price of iron ore in the black metal mining industry fell by -20.7% year-on-year in the previous two months. The price of the ferrous metal smelting and rolling processing industry, that is, the steel industry, fell by -12.4% year-on-year, indicating that the steel company's profits have improved.

Non-ferrous metal ore mining and picking industry saw a smaller decrease, which was -3.6%. Non-ferrous metallurgical ore smelting fell at a different rate from the aforementioned industry chain, showing a larger downstream decline of -5.9%.

Some common downstream industries of black ore and non-ferrous mines have seen smaller price declines, such as 1.8% drop in metal products, 0.9% drop in general equipment manufacturing, 0.9% drop in automotive manufacturing, and manufacturing of railways, ships, aerospace and other transportation equipment. Industry rose by 0.2%. In addition, the prices of computers, telecommunications, and other electronic equipment that were recently relatively well-made fell 1.5% in the first two months of the previous year.

Analysts believe that the upstream iron ore prices fall, often lack a long-term drag on downstream demand, downstream products stabilized or reduce the decline of the upstream price stabilization benefit.

In addition, the decline in the prices of many mineral products in February fell significantly, for example, the industrial producer purchase price index fell by only 1% from the previous month. The decline in the index was mainly affected by the sequential decline in crude oil prices. February crude oil prices fell by 15.7%.