Once the strong situation of the previous two weeks was changed, the steel sector fell by 1.49% this week (February 21-25). Among the 10 steel enterprises monitored by the reporter of Huaxia times, only Inner Mongolia Baotou Steel Union Co.Ltd(600010) rose, of which Citic Pacific Special Steel Group Co.Ltd(000708) fell by 6.46%, Baoshan Iron & Steel Co.Ltd(600019) fell by 5.78%, and Hunan Valin Steel Co.Ltd(000932) share price fell by 4.96%.
Hegang received 520 million yuan of demolition compensation
The world’s first steel short process “zero carbon factory” demonstration production line will be born in the steel industry. On February 15, Bagang and Hejing County People’s Government of Bayingolin Mongolian Autonomous Prefecture, Xinjiang signed the construction and investment agreement of Bazhou iron and steel green short process project, the world’s first demonstration production line of “zero carbon plant” of iron and steel short process. The partner will build the world’s first new energy steel short process “zero carbon plant” demonstration production line of “green electricity + electric furnace + thin strip continuous casting and rolling” in Hejing county. Strive to start the construction of the project in the second half of the year and complete and put into operation in the second half of 2023. The production line will realize zero carbon emission by using photovoltaic green power and forestry carbon sink.
Beijing Shougang Co.Ltd(000959) asset restructuring will be held recently Beijing Shougang Co.Ltd(000959) received the notice from the review committee of mergers and acquisitions of listed companies of China Securities Regulatory Commission on submitting the materials for the meeting. The company expects that the review committee of mergers and acquisitions will hold a working meeting in the near future to review the company’s issue of shares to purchase assets and raise supporting funds and related party transactions. The specific time of the meeting shall be subject to the time announced on the official website of China Securities Regulatory Commission.
In addition, Hbis Company Limited(000709) continues to receive the relocation compensation. On February 24, 2022, Tangshan Branch received relocation compensation from Tangshan Municipal government, amounting to 520 million yuan. The total amount of relocation compensation for the relocation of Tangshan Branch is 33.4 billion yuan. At present, 36.96% of the total compensation has been received.
In addition, the controlling shareholder of Hunan Valin Steel Co.Ltd(000932) was renamed. In order to “strengthen the quality brand construction, create the quality image of Hunan products and Hunan products”, further improve the popularity and influence of Hunan Iron and steel enterprises, and build a national first-class metallurgical base, “Hunan Hunan Valin Steel Co.Ltd(000932) Group Co., Ltd. (hereinafter referred to as Valin Group)” was renamed “Hunan Iron and Steel Group Co., Ltd. (hereinafter referred to as Hunan Iron and Steel Group)”.
steel market has downside risk
In January, global crude steel production decreased by 6.1% year-on-year. The world iron and Steel Association released the data of global crude steel output in January 2022. According to the data, the crude steel output of 64 countries included in the statistics of the world iron and Steel Association in January 2022 was 155 million tons, a year-on-year decrease of 6.1%. Among them, the estimated output of crude steel in China was 81.7 million tons, a year-on-year decrease of 11.2%. India’s crude steel output was 10.8 million tons, a year-on-year increase of 4.7%. Japan’s crude steel output was 7.8 million tons, a year-on-year decrease of 2.1%. The output of crude steel in the United States was 7.3 million tons, an increase of 4.2% year-on-year. The estimated output of crude steel in Russia is 6.6 million tons, an increase of 3.3% year-on-year. The estimated output of crude steel in South Korea is 6 million tons, a year-on-year decrease of 1.0%.
The demand starts slowly, and the steel price may continue to decline. According to the analysis of Lange Iron and Steel Research Center, the policy supervision on the raw material side has been continuously strengthened, the steel demand has not been effectively confirmed, and the market shock has weakened. Among the main varieties, only seamless tubes have a certain increase, and other varieties have a certain range of adjustment. This week, the social inventory of steel continued to accumulate, and the increase rate was relatively low. The current inventory level was lower than that of the same period last year, and the inventory of key steel enterprises was also slightly lower than that of the same period last year.
The above-mentioned institutions said that since November last year, the steel spot market as a whole has been in the horizontal trading stage. With strong expectations and cost support, the price has increased slightly, and the kinetic energy is slightly insufficient. With the end of the Winter Olympic Games, the blast furnace operating rate of major iron and steel enterprises has rebounded significantly. If the demand in the peak season this year does not meet expectations, there is a downward risk in the market. It is estimated that China’s steel market price will fluctuate and adjust next week, the long material market price will fall slightly, the profile market price will fluctuate slightly, the sector market price will fluctuate and fall, and the pipe market price will fluctuate and consolidate.
In addition, the national development and Reform Commission and the State Administration of market supervision made a special study to prevent excessive hoarding of iron ore. In view of the recent abnormal situation that the supply and demand of iron ore market is generally stable and the port inventory continues to rise to a multi-year high, but the price rises sharply, the price department of the national development and Reform Commission and the price supervision and Competition Bureau of the State Administration of market supervision jointly organized the Port Association and some port enterprises to hold a special meeting to study how to significantly shorten the free storage period of iron ore by trading enterprises and increase the storage cost of ports, Prevent excessive hoarding and other related work, guide port enterprises, and urge iron ore trading enterprises to release excessive inventories and restore them to a reasonable level as soon as possible.
