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Policy wind 01 Li air no shortage of good steel prices are still expected to slightly upward repair
Source: Lange Steel Network
On the one hand, the impact of the real estate related boost, on the other hand, the recent market decline is faster, there is a small technical correction. It was reported in the morning that a meeting of executives from Beijing, Shanghai, Guangzhou and Shenzhen will be held soon, and the theme will be how to adjust and optimize real estate related policies. Since then, the real estate development sector has risen, and urban construction development has risen by more than 8%. In addition, today, the Bureau of Statistics released July CPI, PPI data, CPI fell 0.3%, expected to fall 0.5%, the previous value of 0%; July PPI fell 4.4% y/y, 4.1% expected, 5.4% previously. In the case of low and negative price growth, the market has called for interest rate cuts, and believes that PPI and CPI bottom will be formed. The industry speculates that the cost of bank liabilities can be reduced by guiding down deposit interest rates and implementing RRR cuts. If the risk of the real estate head enterprise is controllable, and then with the interest rate cut (RRR), as well as the improvement of post-disaster reconstruction demand, the steel market will be boosted in the extremely fragile situation. Recent disasters have indeed had a greater impact on the demand for steel. Not only extensive coverage, the extent of the disaster is also deep. Torrential rains in Beijing alone have left 33 dead and 18 missing, with 1.29 million people affected. For post-disaster reconstruction, Beijing's general idea is to basically recover in one year, comprehensively improve in three years, and achieve long-term sustainable development. "One year for basic restoration" means that after a year or so, we will basically repair damaged water conservancy facilities that affect flood control, complete the repair and reinforcement of damaged houses, rebuild the original homes built by rural residents, and strengthen the construction of infrastructure and public service facilities, so as to basically restore the security capacity to the pre-disaster level. Compared with post-disaster reconstruction, steel demand recovery will also be improved due to post-disaster and seasonal factors, which is what the market should have under the condition of low inventory. About the market's concerns about real estate. We should not only see the risk of debt crisis of some housing enterprises, but also see the structural adjustment of the real estate industry. According to the analysis of the Middle Finger Research Institute, the real estate market has entered a deep adjustment period in 2021, and most housing enterprises have significantly slowed down the pace of land acquisition, but the central state-owned enterprises have a strong land acquisition. Among the TOP100 enterprises with land acquisition amount, from the point of view of the number of enterprises, the number of central state-owned enterprises and local urban investment has always accounted for more than half, and will total more than 80% in 2022. The central state-owned enterprises have played a stabilizing role in the real estate industry. Through the central state-owned enterprises to trust real estate, through the continued introduction of real estate policies to stabilize the market, the stability of the steel market also has a positive effect. News trends

01 Safety "winter" - iron and steel supply chain enterprises to maintain business, heart, and success
Source: China Steel Net
"From the perspective of the industry environment, the steel industry has entered the winter period, which is a long and painful process." Chen Leiming combined with the status quo of the steel industry to make several analyses. First, the problem of steel overcapacity is very prominent. Our crude steel production capacity now exceeds 1.2 billion tons. Recently, through communication with entrepreneurs and experts, it is estimated that the actual crude steel demand for steel in the future, a pessimistic point is about 600 million tons, an optimistic point to 800 million tons, if it is 700 million tons, we have 500 million tons of production capacity to be eliminated; Second, upstream mergers and reorganizations were intensified. We have seen the restructuring of Baowu, including other steel giants are increasing restructuring efforts; Third, supply-side structural reform remains a long and arduous task. Product industrial structure adjustment and upgrading, service capacity and level must also be adjusted and upgraded; Fourth, the dual carbon goal is the life and death of enterprises. Including production and processing enterprises, if the future double carbon goal can not be achieved, it is possible that the product can not be circulated in the market, which is a road that must be taken; Fifth, downstream demand has plummeted. Whether it is real estate or infrastructure investment, it has entered a slowdown period, especially in the three years since the epidemic. Steel demand in the manufacturing sector is also falling due to the impact of export disruptions; Sixth, circulation enterprises are accelerating differentiation, and a number of enterprises will die. Ten million to 50 million tons of comprehensive, cross-regional, cross-industry, cross-border, with high-tech modern circulation service enterprise groups are taking shape and will dominate the market, a large number of "one buy one sell" enterprises will be eliminated; Seventh, the internal risks of enterprises cannot be ignored. Steel supply chain in the middle and downstream enterprises not only face the risk of market price fluctuations, but also internal production, operation, management, business flow, logistics, information flow, capital flow and many other risk points, each point can determine the life and death of the enterprise, the internal risk is very large, especially the risk of inventory, and management risk and so on.
02 Steel exports have become an important force in the balance of supply and demand
Since the beginning of this year, China's steel exports have been relatively strong, which has promoted the growth of total steel demand and largely digested the domestic supply pressure. It is expected that steel exports (direct exports, the same below) within the year to maintain a large number of scale, annual steel exports higher than the previous year's level, continue to become an important engine to promote the growth of total steel demand. Since the beginning of this year, the main factor for the substantial growth of China's steel and steel consumption products exports is still the quality and low price of China's related products and the strong demand in the international market. In addition, the moderate depreciation of the renminbi against the US dollar has also improved its export competitiveness. Since the beginning of this year, a large number of steel and steel consumption products have been exported across the country, which has become an important engine for the growth of total steel demand. Preliminary estimates, the first seven months of this year, the national total steel demand increased by more than 2%. Had it not been for the export growth rate of 27.9 percent over the same period, it would have fallen into negative territory. Since the beginning of this year, the large number of steel exports in the country has also largely digested the domestic pressure to increase production and become an important force to balance market supply and demand. According to statistical data, in the first half of 2023, the country increased crude steel production by 6.87 million tons, while in the same period, it exported more crude steel (steel exports converted) 10.65 million tons, which fully digested the increased crude steel production in the first half of the year and had a surplus. Looking forward to the situation of China's steel exports in the year, because the above supporting factors continue to exist, it is difficult to disappear in the short term, so steel exports will maintain a large number of scale, monthly year-on-year growth will increase, and steel exports over the previous year should be a foregone conclusion. Industry information

01 A number of Beijing warehousing enterprises visited Lange Group to discuss cooperation
Source: Lange Steel Network
On August 9, representatives of seven warehousing enterprises, including COSCO Shipping Warehouse, first line warehouse, China Railway Construction Engineering Warehouse and China Black Warehouse, visited Lange Group and had in-depth exchanges with Liu Changqing, chairman of Lange Group, and other leaders on the current situation of Beijing steel market and the later development of warehousing enterprises. Chairman Liu Changqing said that the current environment of the steel industry has changed, the supply capacity of traders has declined significantly, some steel mills have fully carried out direct business, more and more large terminal enterprises choose steel mills direct mining, leaving the development space for warehousing enterprises is shrinking. At the meeting, representatives of various warehousing enterprises introduced the current operating status of the company. They have said that in recent years, affected by the environment, the demand has declined significantly, and the superimposed steel mill has continuously increased, resulting in a significant decline in the company's steel storage volume. In Beijing, operating costs such as land rent and labor are high, and some warehousing enterprises have suffered losses. In this regard, we discussed how to improve the storage volume and market activity.
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01 Build intelligent industrial chain of standard sample number to help enterprises develop high-quality | 2023 Metallurgical standard sample industry chain conference was successfully held
Source: World Metal Herald
In order to implement the "Quality power construction Outline" and the "National Standardization Development Outline", strengthen the basic quality support of the industry, improve the stability, consistency and applicability of material quality, on August 10, sponsored by the Metallurgical Industry Information Standard Research Institute, Steel Yanak Testing Technology Co., LTD., the Metallurgical Standard sample information network undertook, The 2023 Metallurgical standard sample industry Chain Conference co-organized by Metallurgical Information Network, Steel Research Nak Standard Material Division, Shanghai Institute of Materials Testing Center, Beijing Metallurgical Standard Sample Development Technology Co., LTD., and Shanghai Hengheng Metallurgical Testing Technology Co., Ltd. was successfully held in Harbin. This conference is one of the professional forums of the sixth China International New Material Industry Expo hosted by the Ministry of Industry and Information Technology and the People's Government of Heilongjiang Province, with the theme of "Building intelligent industrial chain of standard samples to help enterprises develop with high quality", and the live picture has attracted wide attention. In the afternoon, the demand docking forum focused on the topics of "procurement inconvenience and transaction risks brought by traditional procurement methods, building a third-party supply and demand information sharing platform, personalized standard sample customization focusing on demand", aiming to help enterprises solve practical problems in a timely manner, so as to connect supply and demand, link the market, and smooth the cycle. Note: All the above content is collated from the network, only for the purpose of transmitting information, the views and opinions have nothing to do with the company