The steel sector rose 2.26% this week (February 14-february 18). Among the 10 steel enterprises monitored by the reporter of Huaxia times, four rose and six fell. The highest increase was 19.25% of Yongxing Special Materials Technology Co.Ltd(002756) and Inner Mongolia Baotou Steel Union Co.Ltd(600010) rose 3.98%. The shares of Baoshan Iron & Steel Co.Ltd(600019) , Citic Pacific Special Steel Group Co.Ltd(000708) , Beijing Shougang Co.Ltd(000959) , Nanjing Iron & Steel Co.Ltd(600282) fell.
After the news of cooperating with Jiangxi tungsten industry in the development of lithium carbonate project, Yongxing Special Materials Technology Co.Ltd(002756) share price rose directly on the 17th. According to the trading public information of Shenzhen Stock Exchange on February 17, 2022, Yongxing Special Materials Technology Co.Ltd(002756) was listed on the dragon and tiger list because it belonged to the securities with an increase deviation of 7% on the same day. Yongxing Special Materials Technology Co.Ltd(002756) it closed at 147.26 yuan on the same day, with an increase or decrease of 10.00%, a deviation of 9.77%, a turnover rate of 4.51%, an amplitude of 12.12%, and a turnover of 1.694 billion yuan.
In the market, the cost support weakened this week, and the steel price may continue to adjust. According to the analysis of Lange Iron and Steel Research Center, relevant departments have strengthened the supervision of the iron ore market, the ore price has been greatly adjusted, and the terminal demand for steel has also started slowly, the steel price has decreased significantly, and only seamless pipes among the main varieties have a certain increase.
Yongxing Special Materials Technology Co.Ltd(002756) sign the 20000 ton lithium carbonate project
Yongxing Special Materials Technology Co.Ltd(002756) Jiangxi Yongxing new energy, a wholly-owned subsidiary, signed a letter of intent for cooperation with Jiangxi tungsten industry. In order to give full play to the technical advantages of Jiangxi Yongxing new energy and the resource advantages of Jiangxi tungsten industry, it is proposed to establish a joint venture to build a lithium carbonate project with an annual output of 20000 tons.
Both parties set up a joint venture in the form of cash contribution, mainly engaged in the production and sales of battery grade lithium carbonate, and the output of battery grade lithium carbonate is supplied to Contemporary Amperex Technology Co.Limited(300750) . The planned capacity of the lithium carbonate production line of the joint venture is 20000 tons per year. The project is implemented in two phases, of which the first phase is constructed with an annual output of 10000 tons of lithium carbonate.
Yongxing Special Materials Technology Co.Ltd(002756) said that the company and Jiangxi Yongxing new energy have advanced mica lithium extraction technology and intelligent internal management means; Jiangxi tungsten industry and Yichun Tantalum niobium mine have rich reserves and high-grade lithium mica resources. This cooperation between the two sides can realize complementary advantages and strong combination, which is conducive to the company to seize the opportunity of the rapid development of lithium new energy industry, further improve the company’s lithium carbonate market share and Yongxing brand popularity, and consolidate and enhance the company’s position as a leading enterprise in mica lithium extraction.
In addition, Baoshan Iron & Steel Co.Ltd(600019) the million ton hydrogen based shaft furnace of Zhanjiang iron and steel Zero Carbon demonstration plant was started. The project is the first million ton hydrogen based shaft furnace in China and the first direct reduction production line integrating hydrogen and coke oven gas for industrial production. The project is expected to be completed by the end of 2023. After being put into operation, compared with the traditional full process blast furnace ironmaking process, the molten iron output of the same scale can reduce carbon dioxide emissions by more than 500000 tons per year.
steel prices may continue to decline
In order to promote the sustainable and healthy development of the comprehensive utilization of resources industry, the Ministry of Finance and the State Administration of Taxation recently issued the announcement on improving the value-added tax policy for comprehensive utilization of resources, which made it clear that the new value-added tax policy for comprehensive utilization of resources will be implemented from March 1, 2022. Among them, for qualified enterprises, waste steel can be refunded by 30%.
Recently, the national development and Reform Commission and the State Administration of market supervision went to Qingdao to carry out joint supervision and Research on the iron ore market. The research team fully understood the changes of Qingdao Port International Co.Ltd(601298) iron ore inventory and retrieved the list of enterprises with rapid inventory growth; A meeting was held to remind and warn some iron ore trading enterprises to release excessive inventory and restore it to a reasonable level as soon as possible, provide details such as recent changes in iron ore inventory, specific time, quantity and price of purchase and sale, and cooperate to check whether there are illegal acts such as hoarding and raising prices.
The cost support weakens, and the steel price may continue to adjust. According to the analysis of Lange Iron and Steel Research Center, from the combination of price and financial data in January, domestic demand is still not strong, and the measures to stabilize growth are expected to continue. For steel demand, the pull of infrastructure expansion may not be able to withstand the impact of the real estate downturn, and the steady growth force may boost the construction steel relatively gently; The cost pressure of manufacturing industry has eased, and steady growth will further promote the recovery of consumption and drive the steel demand of consumption related manufacturing industry.
The blast furnace operating rate of major iron and steel enterprises in China has picked up this week. After the Winter Olympics next week, the supply is expected to continue to increase. The rise of steel price in the early stage is mainly driven by expectations. The Lantern Festival has passed, and the market will gradually enter the demand fulfillment stage. It is necessary to focus on the start-up degree of demand. At the same time, the iron ore price is adjusted at a high level under policy supervision, and the cost support is weakened. It is expected that there is still room for steel price adjustment in the short term.
On the future steel price, Hunan Valin Steel Co.Ltd(000932) has different views. It believes that: from the perspective of supply, under the policy background of “carbon peak and carbon neutralization”, green development has become the consensus of the steel industry, and the space for further growth of the output of the steel industry is limited; From the demand side, benefiting from the expectation of steady economic growth and the arrival of the traditional peak consumption season, the overall demand for steel is expected to pick up.
