Mysteel market research during the Spring Festival, the cost of billet broke through 4300 yuan

2022-04-30 0 By

WTI crude rose to $93 a barrel, its highest level since September 2014.◎ operation of bulk commodity market during the Spring Festival of 2022: blast furnace: one blast furnace will resume production during the Spring Festival holiday, with a production volume of 500m³ and an increase of 0.2 million tons of molten iron per day;In addition, 19 blast furnaces were overhauled, with the overhauled volume of 22966m³, affecting the daily output of molten iron of 66,400 tons.Iron ore: port spot market during the Spring Festival basically no transaction, post-holiday traders as a whole bullish, not in a hurry to ship, the overall post-holiday bullish attitude of iron ore is strong, some traders said after the holiday will choose the opportunity to purchase.Steel winter Olympics production limit is lower than expected and macro favorable policies, superimposed on some steel mills after the holiday need to fill the warehouse, is expected to run after the holiday market is strong.Coke: Taiyuan area during the Spring Festival coke stable operation, production is relatively stable to maintain pre-festival production limit state, coke delivery is normal, no obvious accumulation of inventory, the first round down after the implementation of low profits of coke enterprises, mentality is weak to see the weak post-festival coke market.Billet: During the Spring Festival, the national price of billet is mainly locked, and the quotation will resume on February 7th. Orders before the production Festival will be arranged in all regions normally.Affected by the northern heating season and the Winter Olympics production limit, steel billet takeout significantly reduced, as of February 6, tangshan steel billet takeout 14,500 tons, compared with the same period last year (lunar calendar) 22,000 tons.The average cost of billet including tax is 4320 yuan/ton, which is increased by 59 yuan/ton week on week.Scrap steel: during the festival, the arrival of scrap steel is poor, and the daily arrival quantity is not as good as the consumption, which mainly consumes the inventory, resulting in a significant decline in the scrap steel inventory, which needs replenishment.Considering the need for a certain period of production and waste, the market may enter a state of supply and demand, although good scrap, but due to the impact of the weather and the epidemic, there is a certain lag in the recovery of terminal demand, which may curb the rise of scrap price.Construction steel: during the Spring Festival, the market is generally closed, the price compared to the pre-holiday no significant change, the mood of the manufacturer is stable, in addition to some pre-winter storage merchants plan to increase the price after the holiday, steel initiative to push up the will is strong;The arrival of goods in all markets is basically in line with pre-holiday expectations. The arrival of goods in East and south China is relatively concentrated, and the situation of tired stock in north China is not as good as the same period in previous years.◎ As of February 5th, the ratio of comprehensive scrap steel in 211 short and long process steel mills investigated by Mysteel was 18.92%, down 0.16% week on week;The total consumption of scrap steel was 2,035,200 tons, down 95,500 tons week on week;Scrap inventory was 6.3845 million tons, down 1.4437 million tons week on week.◎ Looking ahead to 2022, China’s economy will continue to recover. There will be ample supply of industrial and agricultural products and services, sufficient supply of grain, oil, meat, eggs, milk, fruits and vegetables and other important commodities for people’s livelihood, strong guarantee of basic energy such as coal, oil and gas, and a marked increase in China’s ability to effectively respond to abnormal fluctuations in market prices.◎ Several government departments recently issued guidelines on accelerating the construction of recycling system for waste materials, proposing that by 2025, the recycling utilization of nine major renewable resources, including iron and steel waste, copper waste, aluminum waste, lead waste, zinc waste, waste paper, waste plastics, waste rubber and waste glass, will reach 450 million tons.◎ The government has lifted the ban on coal exports, according to a statement from the Indonesian Ministry of Energy and Mineral Resources.Coal exporters who meet the government’s domestic liability requirements and agree to pay fines can resume shipments.◎ Coal India Plans to start exporting coal to some neighboring countries as early as the end of this year, chairman Pramod Agrawal said.Rosneft and China National Petroleum Corporation (CNPC) have signed a 10-year agreement to supply 100 million tons of oil to China via Kazakhstan, according to a statement released by Rosneft on February 4.◎ As of February 6, eight provinces and cities, including Shandong, Beijing, Hebei, Jiangsu, Shanghai, Guangdong, Zhejiang and Sichuan, have released their investment lists for 2022 major projects, with 6,501 projects and a total investment of at least 15.6 trillion yuan.◎ Institutional data show that since 2022, China has issued intensive policies to regulate the real estate market.A total of 66 real estate regulation policies were issued nationwide in January, up 57 percent year on year.From the perspective of regulation content, it mainly focuses on relaxing the restriction of provident fund loans, increasing the supply of affordable rental housing, strengthening the management of commercial housing presale, lowering the LPR closely linked with mortgage loans, and detailing the renovation work of old residential areas.◎ In January 2022, the average price of new residential buildings in Baicheng was 16,179 yuan/square meter, down 0.01% from the previous month, which was 0.01 percentage points narrower than the previous month. The price has fallen three times in a row from the previous month.09:45 China January Caixin Services PMI14:45 Swiss January Unadjusted unemployment rate 15:00 German December Adjusted industrial production m/m 16:00 China January FOREx Reserves ($MLN)17:30 Euro-zone February Sentix Investor Confidence IndexThe original and reproduced content published by Mysteel is for customers’ reference only and is not used as decision-making advice.The copyright of the original content belongs to Mysteel, and Mysteel reserves the right to pursue any infringement and quoting behavior contrary to the original content.The content reproduced is from the Internet for the purpose of passing on more information and facilitating learning and communication. It does not mean that Mysteel agrees with its views and is responsible for their authenticity and integrity.