Beijing sticks to stable macro-economic policy for 2021

Posted on 13 April 2021

Chinese premier Li Keqiang confirmed that “the central government aims at continuity, stability and sustainability in the macro-economic policy for the whole 2021” when having a meeting with the domestic economists and representative of entrepreneurs in Beijing on April 9.

 

Li commented at the meeting that the country’s economy has shown the tendency of a steady recovery, though various economic sectors have shown varied recovery paces with the added uncertainties because of the challenges and complexities in the global economy, as well as their different base numbers a year ago, though all being rather low, according to a post by the Chinese central government on its website www.gov.cn on the late evening of April 11.

 

Among Li’s key remarks are that “no U-turns will be expected in China’s macro-economic policy”, and “all the related markets should nurture realistic expectations for this year”, and “the domestic property market will target at a steady and healthy development” for this year too.

At the meeting, global bulk commodities prices have been complained by the attendees on behalf of the industrial enterprises, commenting that “the surges in these industrial goods have imposed great pressure on the downstream industries”, to which, Li called for “various adjustments by the market forces to relieve the burden on the related enterprises”, though no specific measures have been mentioned. 

In response to Beijing’s attention on the bulk commodities, China’s steel prices that have been soaring since late March with many having touched their respective multi-year highs recently, wavered on Monday. 

The most-traded October rebar contract on the Shanghai Futures Exchange, for example, closed at Yuan 4,985/tonne (761/t) when the daytime trading hour ended on April 12, or down Yuan 101/t from the settlement price of April 9.

The Chinese steel market sources, however, were divided on the near-term outlook when asked on Monday.

“The price declines are probably temporary, and we have orders flooding in steadily, so I do not think the steel prices will be able to decline (in the long run),” an official from a steel mill in East China’s Shandong commented. 

A steel analyst from Shandong, however, disagreed. 

“China’s steel prices have come to their peaks, and I think the impetus is lacking for further gains,” he said, adding, “besides, profits have been concentrated at one or the few parts of the whole value chain in the industry, which is unhealthy and unsustainable.”

Source : Mysteel Global