A review of the steel industry's highlights of the week

International


Steel still plays an important role in the world economy The steel industry continues to play a vital role in the modern world, according to a report published at the end of May by the Oxford Economics Institute, The Impact of Steel in the Global Economy. In 2017, the steel industry contributed 3.8% of global GDP to the global economy. The global steel industry is more than $80,000 per year of productivity per capita, three times the average for all sectors of the global economy.


The report also notes that for every dollar added to the value of the steel industry, the rest of the global economy will "add another $2.50" to transactions such as raw materials, commodities, energy and services.


The World Steel Association also pointed out in the latest issue of World Steel Statistics 2019, released on June 3rd, that steel has been the material basis for social development and progress over the past 100 years, and that in the next 100 years, steel will continue to play the role of the material basis of social development to meet the challenges of social development.


Australian mining investment picks up, exports boost boost gdp


On June 5th a senior Rbaibank economist said the economy was expected to grow faster next year as mining investment picked up and demand for Australian commodity exports was strong.


The resources sector accounts for 20 per cent of Australian business investment and 60 per cent of exports and is an important part of the Australian economy.


Turkey's crude steel production in April increased 2.6% year-on-year On June 10th the Turkish Iron and Steel Dealers Association (TCUD) reported that crude steel production in Turkey was 3m tonnes in April, up 2.6 per cent year-on-year.


In the January-April months, Turkey's crude steel production was 11.2 million tons, down 10.5% year-on-year. In May, the US announced it would cut tariffs on steel imports from Turkey to 25 per cent from 50 per cent previously.


In August 2018, the United States doubled import tariffs on Turkish steel and aluminum due to diplomatic wrangling.


Brazil's iron ore exports fell 13.8% year-on-year in May Brazil's iron ore exports fell year-on-year in May, driven by a tailings dam collapse and the suspension of iron ore in late January, according to data released by the Ministry of Development, Industry and Foreign Trade.


However, exports increased significantly from April.


Brazil exported 29.828 million tonnes of iron ore in May, down 13.8 per cent from 34.618 million tonnes a year earlier and up 62.6 per cent from 18.343 million tonnes in April.


Top 50 Steel Companies in the World (2018)


On June 3rd, Beijing time, the World Steel Association released world steel statistics 2019, which ranked the world's steel companies based on crude steel production in 2018 and released a list of the world's top 50 steel companies. Of the top 50 steel companies in the world in crude steel production in 2018, 28 are Chinese steelmakers, up two from 2017.


Three Chinese steel companies, Qingshan Holdings Group, Tianjin Iron and Steel Group and Hebei Donghai Te Steel Group, are on the list this year, while last year's cross-section steel group has not made the list again this year. In 2018, there are six Chinese enterprises in the top 10 steel companies in the world, namely Baowu Group, Hegang Group, Shagang Group, Angang Group, Jianlong Group and Shougang Group.


For the first time, Jianlong Group is in the top 10 in global crude steel production compared to 2017.


Domestic


China's steel exports in May 5.743 million tons decreased by 9.2% month-on-month


Data released by the General Administration of Customs on June 10 th, China exported 5.743 million tons of steel in May 2019, down 583,000 tons, or 9.2 percent, from a month earlier, and 1.14 million tons, or 16.6 percent, from a year earlier. From January to May, China exported 29.093 million tons of steel, up 2.5% YoY, while its cumulative exports amounted to US$234.23.6 million, down 4.6% YoY.


Based on this estimate, the average price of China's steel exports in the first five months of 2019 was US$805.1/tonne.


China's imports of steel in May decreased by 1.8% month-on-month to 982,000 tons


Data released by the General Administration of Customs on June 10th showed that China imported 982,000 tons of steel in May 2019, down 18,000 tons, or 1.8 percent, from a month earlier, and 152,000 tons, or 13.4 percent, from a year earlier. From January to May, China imported 4.878 million tons of steel, down 13.4% YoY, while its cumulative imports amounted to US$588.44 million, down 17.0% YoY.


Based on this estimate, the average price of Chinese steel imports in the first five months of this month was US$1206.3/tonne.


China's imports of iron ore and its concentrates increased 3.7% month-on-month in May


Data released by the General Administration of Customs on June 10 th, China imported 83.753 million tons of iron ore and its concentrates in May 2019, an increase of 2.981 million tons, or 3.7%, month-on-month, and a decrease of 10.382 million tons, or 11.0%, from a year earlier. From January to May, China imported a total of 42.3916 million tons of iron ore and its concentrates, down 5.2% YoY, while cumulative imports amounted to US$357.31 million, up 12.0% YoY.


Based on this estimate, the average import price of iron ore sands and concentrates in China in the first five months of 2019 was US$84.3/tonne.


Bureau of Statistics: Steel production in May was 107.4 million tons, up 11.5% YoY According to the National Bureau of Statistics, in May 2019, the country's steel production was 107.4 million tons, up 11.5% year-on-year and 5.2% month-on-month.


Based on this estimate, the average daily output of steel in May was 3.465 million tons, an increase of 63,000 tons/day, or 1.9 percent, month-on-month.


From January to May, steel production was 48.36 million tons, up 11.2% year-on-year.


China adjusts anti-dumping duty rate on seamless steel pipes imported from the United States and the European Union


The Ministry of Commerce of the People's Republic of China issued Notice No. 24 of the year on June 14, 2019, and decided to review the results of the investigation on a period of time, and adjust the anti-dumping duty rate applicable to import-related high temperature pressurized alloy steel seamless steel pipes originating in the United States and the European Union from June 14, with a duty rate of 57.9% to 147.8%.


The steel industry ushers in the "era of big steel enterprises" On June 2, 2019, the "boots" of China Baowu Steel Group Co., Ltd. acquiring Masteel (Group) Holdings Co., Ltd. finally landed.


On the same day, Masteel shares issued an evening announcement that China Baowu to Masteel Group to carry out restructuring, Anhui Province, The State-owned Assets Control Commission will Masteel Group 51% of the shares of the free transfer to China Baowu.


It is understood that China Baowu acquisition of Masteel Group, the size of assets will be more than 800 billion yuan, the future crude steel production capacity is expected to be close to 100 million tons. In this regard, industry insider Yu Lin told reporters that the merger and reorganization of steel enterprises is the development trend of the industry, through the nearly two years of market-oriented, legal means have resolved more than 100 million tons of backward production capacity, has laid the foundation for the merger and reorganization of steel enterprises.


Yu Lin judged that the future steel enterprises will enter the "big steel enterprise era", will form about ten large steel enterprises, competing in the international market.


The rainy season is coming, steel prices are weak Since late May 2019, the rebar futures 1910 contract volatility downwards, the same period iron ore futures prices also fell slightly, but the decline is much smaller than the rebar futures.


Industry insiders believe that in June, steel downstream demand will weaken, but the release of high production will increase market supply pressure, steel social inventory is also expected to show a slowdown or even rebound;


Scrap prices will continue to fall after Dragon Boat Festival


Recently, the steel spot market trend is weak volatility, although iron ore, coke prices are still high, iron and scrap costs are basically the same, but the market demand for scrap steel has no increase or decrease trend;


Iron ore prices hit two-year high Iron ore prices are still rising and have recently reached their highest level in two years.


In the futures market, iron ore performance is eye-catching, June 11 there was a rise and stop. Liu Huifeng, a black metal researcher at Donghai Futures, believes that the sharp rise in iron ore prices is mainly due to: First, since last week, the RBA of Australia and India have cut interest rates, the Federal Reserve issued a signal to cut interest rates, and since June, the domestic central bank through open market operations accumulated 710 billion yuan of liquidity into the market, The heightened expectations of global monetary easing have boosted sentiment in commodity markets as a whole. Moreover, the recent domestic release of "on the local government special debt issuance and project supporting financing work notice", allowing the special debt as the principal of major projects, and encourage financial institutions to provide supporting funds, is expected to boost infrastructure investment of about 1.3 trillion yuan, which further boosted the market's confidence in the later demand recovery.


Third, the current iron ore market itself is still in a tight balance between supply and demand pattern.


Enterprise


Baosteel exports steel to Belarus for the first time


BEIJING, June 5 from Baotou Steel Group was informed that recently, the company's international trade company for the first time to Belarus exported 2000 tons of steel, to help the local large-scale infrastructure projects.


Official lying, the export of a total of 2000 tons of H-type steel and medium-thick plate orders, all completed delivery.


Hualing Steel: 1.71 million tons of steel produced in May, up 6.9% YoY


Recently, Hualing Steel (Hunan Hualing Steel Co., Ltd.) announced that in May 2019, the company's steel production was 1.71 million tons, an increase of 110,000 tons, an increase of 6.9%. In May, Hualing Steel produced 1.48 million tons of iron, 1.81 million tons of steel, 1.71 million tons of steel and 1.69 million tons of steel, according to the announcement.


From January to May, Hualing Steel produced 7.17 million tons of iron, 8.76 million tons of steel, 8.28 million tons of steel and 8.4 million tons of steel.


Tangshan Port Lusteel 2 million tons cold rolling project first phase of the project successfully put into operation Xiben Shinkansen news, June 10, Tangshan Port Lu cold rolling Co., Ltd. 2 million tons of cold rolling project, the first phase of the project announced the official start-up.


The first phase of the total investment of 1.45 billion yuan, the construction of 1.2 million tons of acid rolling production lines and ancillary facilities, the overall design of the project and major equipment are using domestic and foreign industry-leading technology and high-end configuration. After the completion of the project, can produce cold-rolled plate, galvanized plate, aluminum-plated zinc plate, annealing plate and other diversified high-quality end products, daily output of up to 3500 tons, mainly used in automotive plate, home appliances board and high-end building board, product structure will achieve strategic upgrading, effectively promote the industrial chain aggregation development, to fill the city cold-rolled coating no high-end products blank.


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