September 24 Steel News Morning Reading

[Hot Spot Guide]

●The iron and steel industry reduced its production.

In the face of environmental pressure and lack of demand, the steel companies that have claimed to be in the cold have once again shouted a slogan of production cuts. However, for the past few years, the higher the production capacity, the higher the production capacity and the more malformed. The insiders of the steel enterprises all admitted that, besides various accounting methods, the listed steel companies have turned back losses and there are financial subsidies from local governments. Taking Lingang Steel as an example, its net profit in the first half of this year was RMB 37 million, which was a year-on-year increase of 115.92% compared to a loss of RMB 232 million in the same period last year. The reason for turning losses was a government subsidy of several hundred million yuan.

Interpretation: Fubao Information believes that to get rid of the loss situation of steel enterprises and limit steel production, we must first break the narrow ideology of the princely economy and guide the survival of the fittest according to market rules rather than through administrative orders. Second, cancel the soft constraints of local governments, can not be unlimited subsidies; the final is to raise the level of steelmaking, control of steel exports, cancel the export subsidies, get rid of the path of development in the more morbidity.

● Thermal coal ** was listed on the Zhengzhou Commodity Exchange on Thursday, saying that on the 26th, thermal coal ** will be listed and traded. The benchmark price of each contract is 520 yuan/ton. Coal is an important basic energy and raw material in China and has an important strategic position in the national economy. Thermal coal production accounts for about 80% of total coal production. From the perspective of spot size, thermal coal ** will be the largest variety in the current domestic commodity market, and will make beneficial explorations for the listing of large-scale resource commodities such as iron ore and crude oil in the future.

Interpretation: Since the coking coal market was launched in March this year, investors and related industrial customers have actively participated in the market. The daily turnover is about 800,000 lots, and trading is very active. The data shows that in 2012, the coal output was 3.65 billion tons, of which thermal coal output was about 2.91 billion tons. From the perspective of consumption, the power industry is the main body of thermal coal consumption. In 2012, the consumption of thermal coal in the power industry was approximately 1.94 billion tons, and the huge market utilization rate made the thermal coal industry’s social awareness relatively high. Therefore, compared with coking coal**, after the listing of thermal coal**, the level of business involvement may be even higher.

【related news】

● Beijing-Tianjin-Hebei no longer approves iron and steel cement projects in Beijing-Tianjin-Hebei and surrounding areas in accordance with the Ministry of Environmental Protection, the Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Housing and Urban-Rural Development, and the Energy Bureau. In the future, Beijing-Tianjin-Hebei and surrounding areas must not approve new production capacity projects in industries with serious overcapacity such as steel, cement, electrolytic aluminum, flat glass, and ships. At the same time, it also clearly stipulates that from 2015 to 2017, Beijing-Tianjin-Hebei and its surrounding areas should continue to increase the elimination of backward production capacity in light of the actual conditions of industrial development and environmental quality.

● The iron ore ** delivery site was set up at the head of the Industrial Products Department of the Dalian Commodity Exchange in the Bohai Rim of the Bohai Rim. The site of the iron ore** delivery site has been considered to be located in Qingdao Port and Tangshan Port of the Bohai Rim region (including the Tang Caofeidian), Rizhao Port, Tianjin Port, and Lianyungang, and set up factories in Tangshan area and ports in Hebei Province. These five major ports are also the iron ore trading and distribution centers. Imported ores are usually traded in ports. Domestically produced iron ore that is part of the water transport is often traded in ports. The coastal ports have become the most concentrated and active areas for iron ore trading.

● Iron ore ** The preferred person in charge of the fine ore concentrates major trading company said that the iron ore ** delivery products were first identified as fine ores and concentrates. There are several main reasons. First, powder ore and concentrate are the main varieties of production, consumption, and trade in China. Second, powder ore is the largest variety of risk exposures for Chinese companies. Third, the price representative of fine ore Fourth, the trade flow of fine ore and concentrate is clear, and the delivery location is simple; Fifth, the index system is simple and the quality dependence is low.

[Summary]

On September 23, the Dow Jones Industrial Average fell 49.71 points to close at 15,401.38 points, a decrease of 0.32%; the Nasdaq Composite Index fell 9.44 points to close at 3,765.29 points, a decrease of 0.25%; Standard & Poor's 500 Index fell 8.06 points. It closed at 1,701.85 points, a decrease of 0.47%. New York crude oil prices closed down 1.1% on Monday to $103.59 a barrel. New York gold prices closed down 0.4% on Monday to $1327 per ounce. The US dollar index rose 0.02 to close at 80.46, an increase of 0.03%. Copper on the London Metal Exchange (LME) fell by 33.25 U.S. dollars to close at 7,250 U.S. dollars, a decrease of 0.46%.

【Market Analysis】

On September 23, the period 01 opened low 3629, the whole day low stabilized, shocks higher, breaking the 3650 mark resistance, the highest intraday 3656, closed at 3655 rose 24 gains of 0.66%, capital side, trading volume slightly larger than the previous day , Position increase 78,000 hands. Technically, the low of the K-line on the Japanese side stabilized and closed higher, and stood on the 5-day moving average. The KDJ indicator has a low metal fork, and the MACD indicator is decreasing. The spot is weak overall. Operation, the long and short positions light tanks to participate cautiously, pay attention to the 3650 platform for competition. Spiral has stabilized in the material period and has a greater impact on the spot market.

[steel market dynamics]

● Ore: On the 23rd, the iron ore market slumped. In terms of the Platts index, the index was stabilized yesterday, with 62% of the Australian meal index at US$131.5/ton. Most of the spot market's offer was held steady yesterday. The non-mainstream offer has obviously declined and is now running counter to it. It shows that the current market is in an unstable state of mind, and the status quo of poor transactions is difficult to change in a short time. Port spot transaction reference: Sunshine Special Powder 820; Lianyungang Super Special 810; Taicang Port PB powder 950; Tangshan Port PB powder 935, special powder 820 yuan. In terms of domestic mines, the transaction price was obviously light after the price of ore decreased, but the National Day holiday is approaching. The steel mills have plans to make up for the reserve, which will provide some support for the ore price, and it is unlikely to continue falling in the short-term. In other markets, Zunhua 60% coarse meal 690-700; 66% refined wet base does not include tax 800-805; 62.5% pellet 940; Qianan 66% refined wet basis does not include tax 820-830.

● Billet: Tangshan finished product decreased slightly on the 23rd, the transaction weakened compared with yesterday, and the downstream hesitation on billet procurement. Today's capital market has rebounded, the period rebounded and the market rebounded slightly. However, the business is still bearish on the market outlook. Weak stable operation in the short term. After the afternoon, billet fell by 20, and Tangshan Guoyi, Xinglong and other common carbon billets were tax-included at the factory by 3020 yuan/ton, low-alloy 3140 yuan/ton, and traders' naked price by 2910-2930 yuan/ton. Anfeng, Hongxing ex-factory price 3020 yuan / ton.

● Coke: 23 days on the secondary metallurgical coke to the factory tax price 1250 yuan / ton, Rizhao secondary metallurgical coke to the factory tax price 1330-1340 yuan / ton, Linyi secondary metallurgical coke factory tax price 1160 yuan / ton , Qitaihe secondary metallurgical coke factory tax price 1290-1320 yuan / ton, Pingdingshan secondary metallurgical coke factory tax price 1260-1290 yuan / ton, Huaibei secondary metallurgical coke factory tax price 1,400 yuan / ton, Tangshan Secondary metallurgical coke to the factory tax price of 1360-1400 yuan / ton, Wuhai secondary metallurgical coke factory tax price 1030 yuan / ton, Yinchuan 80 coke factory tax price 770 yuan / ton, Tianjin Port secondary metallurgical coke containing The tax price was 1340-1380 yuan/ton, the mainstream of the coke market was stable, the overall transaction was good, the steel market was still weak, and the overall market performance was dull. It is expected that the short-term market will continue to maintain its stable position.

● Building materials: On the 23rd, the price of Hegang Grade 3 large snails in the Beijing market was 3,400 yuan/ton, which was flat compared with the previous day; the Shanghai market Zhongtian secondary large screw was 3470-3520 yuan/ton, which was the same as the previous day; Guangzhou The market's three-tier large steel screw at 3710 yuan / ton, unchanged from the previous day.

● Sheets: On the 23rd, the closing price of the Shanghai hot market was 3,480-3,530 yuan / ton, which was a weaker consolidation than the previous day. The closing price of the hot coil in the Tianjin market was 3520-3540 yuan / ton, which remained stable from the previous day. The closing price from the market enthusiasm was 3,640-3,650 yuan / ton, up 20 yuan / ton from the previous day.

[today's forecast]

● Building materials: Domestic building materials as a whole were weaker yesterday, and prices of leading cities in many cities fell. The Fed meeting did not announce the withdrawal of QE, which caused the worries of foreign countries to be suspended. As a result, the domestic stock market turned red yesterday, but the increase in the period was not large, and the boost to the mentality of the steel market was limited. At present, the financial pressure is relatively high. Small and medium-sized traders are chasing each other for low prices, which makes the downstream killing mentality more significant. It is expected that the price of Grade 3 large snails in the Beijing market will be 3,390 yuan/ton, down by 10 yuan/ton from the previous day. In the Shanghai market, the medium-end secondary snails were 3470-3520/ton, which was unchanged from the previous day. The Guangzhou market's third-grade large screw of Guangzhou Steel was 3,700 yuan/ton, which was down 10 yuan/ton from the previous day.

● Plates: In terms of the market, the domestic hot rolled steel industry continued to be in a chaotic state yesterday, and the market was weak in the long-term. The overall attitude of traders was pessimistic. With the exception of South China, it maintained a pull-up trend. Others were stable or fell. However, there was no improvement in downstream demand. In addition, although HSBC Manufacturing PMI initial value of 51.2, a record high of six months, but the macro-benefit still hard to drive the rebound in steel prices, the end of the financial pressure under the pressure, shipping payment is still the mainstream operation of the market, it is expected that the national hot roll continues to be weak Consolidate. Shanghai market 5.5mm mainstream offer 3480-3520 yuan / ton, Tianjin market 5.5mm Tang Gang mainstream quote 3510-3530 yuan / ton; Lecong market 5.5mm Liuzhou mainstream quote 3630-3650 yuan / ton.