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1. SteelHome Survey:
Inventory of Five Steel Products
Inventory in Marketplace
and Mills by March 4 (quantity in 10,000 tons)
|
Item
|
Products
|
Rebar
|
Wire rod
|
Medium plate
|
HR coil
|
CR sheet
|
Total
|
|
Social inventory
|
Mar.4, 21
|
1110
|
397
|
136
|
352
|
180
|
2176
|
|
Feb.25, 21
|
1009
|
371
|
135
|
347
|
181
|
2043
|
|
Up/down
|
102
|
25
|
1
|
6
|
-1
|
133
|
|
Mill inventory
|
Mar.4, 21
|
597
|
302
|
82
|
102
|
42
|
1125
|
|
Feb.25, 21
|
607
|
296
|
93
|
107
|
44
|
1147
|
|
Up/down
|
-10
|
5
|
-11
|
-4
|
-2
|
-21
|
|
Combined
|
Mar.4, 21
|
1708
|
698
|
218
|
455
|
222
|
3301
|
|
Feb.25, 21
|
1615
|
668
|
228
|
454
|
225
|
3189
|
|
Up/down
|
92
|
31
|
-10
|
1
|
-3
|
112
|
Source: SteelHome
2. SteelHome Survey: Transactions
According to SteelHome survey, daily transaction of
rebar was 53,300 tons, up 91.65 percent on week, and down 7.85 percent
from the volume in the counterpart of 2020 (on calendar year basis); that
of medium plate was 20,600 tons, up 9.38 percent on week, and it was up
6.50 percent of the volume in the same time of 2020; and that of HRC was
19,200 tons, up 35.17 percent, that was down 7.16 percent of the last
year.
|
|
Before 2020 Lunar Chinese New Year
|
Before 2021 Lunar Chinese New Year
|
|
price in RMB
per ton
|
Rebar
|
Medium plate
|
HRC
|
Rebar
|
Medium plate
|
HRC
|
|
6 weeks ago
|
66823
|
21007
|
23952
|
79979
|
24034
|
22399
|
|
5 weeks ago
|
61064
|
19242
|
20058
|
74770
|
22371
|
21613
|
|
4 weeks ago
|
59924
|
19267
|
20014
|
68932
|
21288
|
20363
|
|
3 weeks ago
|
57274
|
19039
|
21275
|
52195
|
19393
|
17037
|
|
2 weeks ago
|
50595
|
19866
|
17538
|
15099
|
12008
|
7619
|
|
1 week ago
|
41885
|
16644
|
16459
|
2505
|
2173
|
1643
|
|
|
Post Lunar Chinese New Year holiday
|
|
1 week thereafter
|
5687
|
5039
|
3961
|
7868
|
9353
|
6324
|
|
2 weeks thereafter
|
25154
|
13420
|
14357
|
27829
|
18898
|
14256
|
|
3 weeks thereafter
|
57877
|
19409
|
20758
|
53334
|
20671
|
19271
|
Source: SteelHome
3. SteelHome Survey: BF
Operating Rate
According to SteelHome
survey among 195 steel mills, the operating rate of BFs was 93.85 percent,
or 779.1632 million tons, against the combined capacity of 828.8952
million tons, a rise of 0.02 percentage points from the prior survey.
|
Region
|
In terms of BF Capacity %
|
|
Mar.4
|
Feb.25
|
Change
|
|
Total
|
93.85
|
93.83
|
0.02
|
|
North China
|
90.63
|
90.81
|
-0.18
|
|
Hebei Province
|
90.5
|
89.38
|
1.12
|
|
East China
|
97.74
|
98.25
|
-0.51
|
|
Middle & South China
|
95.87
|
93.86
|
2.01
|
|
Northeast China
|
96.71
|
99.28
|
-2.57
|
|
West China
|
89.45
|
87.56
|
1.89
|
Source: SteelHome
4. SteelHome Survey: EAF Operating Rate
|
Region
|
Mar.4
|
Feb.25
|
Change
|
|
Total
|
81.05
|
57.35
|
23.7
|
|
North China
|
-
|
-
|
-
|
|
East China
|
85.68
|
80.47
|
5.21
|
|
South Central China
|
89.59
|
38.31
|
51.28
|
|
Northeast China
|
13.51
|
-
|
13.51
|
|
West China
|
75.6
|
56.35
|
19.25
|
Source: SteelHome
5. SteelHome Survey:
Capacity Utilization Rate
|
Products
|
Utilization rate of product lines (%)
|
Utilization rate of capacity (%)
|
Daily output each week (10,000t)
|
|
Mar.4
|
Feb.25
|
Change
|
Mar.4
|
Feb.25
|
Change
|
Mar.4
|
Feb.25
|
Change
|
|
Wire rod
|
90.25
|
88.98
|
1.27
|
90.55
|
89.5
|
1.05
|
38.24
|
37.29
|
0.94
|
|
Rebar
|
87.46
|
84.95
|
2.51
|
88.02
|
85.85
|
2.17
|
63.16
|
61.17
|
1.99
|
|
Heavy and light sections
|
71.43
|
71.43
|
-
|
72.76
|
72.76
|
-
|
4.32
|
4.32
|
-
|
|
H beam
|
87.5
|
87.5
|
-
|
90.16
|
90.16
|
-
|
4.71
|
4.71
|
-
|
|
Medium plate
|
95.31
|
93.75
|
1.56
|
94.26
|
93.77
|
0.49
|
23.52
|
22.85
|
0.67
|
|
HRC
|
96.15
|
97.44
|
-1.28
|
94.85
|
96.4
|
-1.55
|
51.54
|
52.19
|
-0.65
|
|
CRC
|
95.95
|
94.59
|
1.35
|
97.31
|
95.57
|
1.74
|
18.51
|
18.16
|
0.35
|
|
HR strip
|
84.62
|
84.62
|
-
|
88.62
|
88.62
|
-
|
13.86
|
13.66
|
0.2
|
|
Galvanized sheet
|
96.34
|
96.34
|
-
|
96.14
|
96.14
|
-
|
7.16
|
7.19
|
-0.03
|
|
Coated sheet
|
91.3
|
95.65
|
-4.35
|
93.15
|
96.19
|
-3.04
|
1.61
|
1.61
|
-0.01
|
|
Silicon steel
|
100
|
100
|
-
|
98.78
|
98.78
|
-
|
1.95
|
1.95
|
-
|
|
Seamless pipe
|
95.38
|
95.38
|
-
|
97.73
|
97.73
|
-
|
3.49
|
3.49
|
-
|
|
Quality bar
|
91.55
|
95.77
|
-4.23
|
91.5
|
96.84
|
-5.34
|
12.28
|
12.92
|
-0.64
|
Source: SteelHome
6. Macro News
6.1 USA Senate Approved 1.9 Trillion Dollars of
Stimuli
US Senate voted and approved 1.9 trillion US
dollars of stimulus package introduced by Joseph Biden. The House of
Representatives next Tuesday will re-vote as the bill has been changed,
followed by the official signature of the President. It is introduced that
the stimuli will provide 1400 US dollars to most of Americans, and prolong
the weekly 300 dollars subsidy to September 6.
6.2 State Council: China 2021 GDP Target at 6%+
The major points of government work report
delivered by Premier Li Keqiang: a) The economic growth target for 2021
will be more than 6 percent, which is lower than the market’s
expectation; b) China will arrange 3.2 percent of deficit in 2021 when
3.65 trillion RMB of local government special bonds will be newly added,
in compared to 3.6 percent of deficit and 3.75 trillion RMB of bonds in
2020; c) ‘no rush turning’ is re-iterated in work report, and the
growth rate of money supply and social funding is expected to be matching
with nominal economic growth rate; d) carbon peak and carbon
neutralization work are highlighted, and the plan to realize the peak by
2030 is set to be framed out.
6.3 MOC Head: 2021 Fiscal Policy to Keep Stable
with No Rush Turning
As Mr. Liu Kun, Head of Ministry of Finance said on
the Fourth Plenary of 13th National People’s Congress, the
deficit rate and the local government special bonds will be lower than
2020. The deficit will be 3.57 trillion RMB, an increment of 0.81 trillion
RMB than 2019; newly-added local government special bonds was 3.65
trillion RMB, an increment of 1.5 trillion RMB. The transfer payment from
central government to local will be more than 8.3 trillion RMB this year,
slightly higher than that in 2020.
6.4 CBIRC: Showed Concerns on non-China Asset Bubble
Mr.Guo Shuqing, Chairman with China Banking and
Insurance Regulatory Commission, delivered a speech on the press
conference of State Council. His major points include: a) Major western
countries are badly hit by the pandemic. However, the lofty financial
market is diverging from the performance in real economy. He is quite
concerned about the asset bubble outside of China; b) the biggest grey
rhino in financial system is the finalization and bubbling of property
section; c) the rate in whole market will be rolling up, and the loan rate
is probably going up or adjusted.
6.5 MIIT: Steel Smelting Capacity to be
Dramatically Pressed down
China has completed the 150 million tons of steel
capacity target by two years in advance, and phased out 64.74 million tons
of zombie enterprises, introduced Ministry of Industry and Information
Technology. The department is working with related government bodies to
frame plan to press down steel and iron smelting capacity. The low
concentration and the high dependence on imported raw materials will be
solved in the next phase.
6.6 Tangshan Issued March Air Pollutant Treatment
Action Plan
Tangshan city, the steel producing hub in China,
issued March Air Pollution Treatment Action Plan. According to the Plan,
seven 450-m3 BFs from Yanshan Steel, Tangshan Steel Stainless Steel, Huaxi
Steel, Rongxin Steel are requested to be shut down before March 10. All
the facility of Xin Baotai Steel is closed. As SteelHome knows, 4 of seven
BFs have been stopped. Among two coke producers, the coke ovens of Ganglu
Steel hasn’t been shut down, with 1 million tons of coke capacity
involved.
The paper will rein in steel production in the
future, as 45 percent of emission is requested to be cut down in the city
this month.
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