Industry dynamic information
Industry Overview:
From the performance of each sub sector of transportation relative to Shanghai and Shenzhen 300, the overall transportation sector fell this week (March 7-march 11). The comprehensive logistics sector fell 4.24% this week, of which the raw material supply chain service sector fell 2.64%.
Commodity supply chain: the price fluctuation intensifies and the value of the supply chain highlights
European and American sanctions against Russia continue to escalate. Under the “Russia non Russia” difference, commodity prices fluctuate sharply, and prices may remain high under the fundamentals of supply shortage. On March 8, US President Biden officially signed an executive order banning US energy imports from Russia. The British government also announced that it would gradually stop importing Russian oil and related products by the end of 2022. The “Russian non Russian” interest rate spread continues to expand. Europe and the United States are actively seeking alternative sources of supply. Under the fundamentals of supply shortage, the price may remain high. In the process of Global trade rebalancing, the value of supply chain may gradually highlight.
The national Standing Committee proposed to pay close attention to the impact of commodity market trends to ensure that economic growth, employment and prices are stable within a reasonable range. As an alternative energy, the demand for coal transportation is expected to increase. On March 14, the executive meeting of the State Council proposed to closely track the changes in the international situation, the macro policy adjustment of major economies, the trend of commodity markets and their impact on China, and constantly improve response measures to ensure that economic growth, employment and prices are stable within a reasonable range. On March 7, the press conference of the State Council Information Office said that the focus is to ensure energy security and supply from four aspects: 1) focus on increasing production capacity; Orderly release the advanced coal production capacity and maintain the coal output at a reasonable level. 2) Focus on strengthening reserves; Accelerate the construction of government dispatchable coal reserve capacity of more than 200 million tons. 3) Strive to ensure supply and price stability. 4) Firmly abide by the bottom line of people’s livelihood and energy consumption. Therefore, on the premise of a sharp rise in oil prices, the demand for coal transportation as an alternative energy is expected to increase.
The prosperity index of China’s logistics industry continues to be in the boom range. According to the data released by China Federation of logistics and purchasing, on March 9, 2022, the freight rate index of China’s highway logistics was 100322 points, up 0.03% year-on-year, and basically unchanged month on week; In February 2022, the prosperity index of China’s logistics industry was 51.2%, up 0.1 percentage points from the previous month, and remained in the boom range.
It is suggested to pay attention to Wuchan Zhongda Group Co.Ltd(600704) , Xiamen C&D Inc(600153) , Xiamen Xiangyu Co.Ltd(600057) . In the post epidemic era, the world’s major economies continued to recover and the demand for bulk commodities continued to be strong; Superimposed on the continuous escalation of the conflict between Russia and Ukraine, all kinds of supplies may be impacted, and bulk commodities may usher in a bull market, with a high outlook or transfer to the supply chain. Referring to the historical trend, the share price of commodity traders tends to be the same as that of commodities.
