The hottest iron ore inventory rises sharply, and

2022-08-24
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The steep rise in iron ore inventory "strong steel and weak ore" pattern will continue

the steep rise in iron ore inventory "strong steel and weak ore" pattern will continue

China Construction machinery information

under the background of "capacity reduction" and "inventory reduction" of steel enterprises, port iron ore inventory has risen sharply recently. Some market participants believe that the market pattern of "strong steel and weak ore" will be maintained for some time in the future

the data released by United Metal yesterday showed that the iron ore inventory in 42 ports across the country was 99.929 million tons that day, an increase of 758000 tons over last Friday. In fact, the sharp rise in port iron ore inventories has continued for many days. According to the latest data released by Shanghai steel house information technology Co., Ltd., the iron ore inventory in mainland ports reached 97 million tons last Friday, the highest level since April 2015, an increase of 2.3% over the previous week. Last week, the total arrival of iron ore at the six major ports in the North was 12.175 million tons, an increase of 1.394 million tons on a weekly basis

according to the analysis of market participants, the recent sharp increase in port iron ore inventory is mainly due to the decrease of 5.8pct in Brazil and Australia on a month on month basis, and the increase in the volume of iron ore delivered to the skin. It is understood that despite the sluggish demand in China, the iron ore export of Hedland port, Australia's largest ore export port, increased significantly in March

according to the data released by Australia's Pilbara port authority on the 5th, the total iron ore shipment volume of Hedland port in March this year rose from 36.61 million tons in February to 39.53 million tons, an increase of 8%. The total shipment volume exceeded the peak of 39.4 million tons in September last year. Among them, in March this year, Australia's iron ore exports to China rose from 29.14 million tons in February to 32.6 million tons. She believes that the next step is to discuss regulatory qualifications and related ethics

while the iron ore inventory in the port increases, the resumption process of steel mills is very slow. According to my steel research data, as of April 1, the operating rate of 163 steel mills across the country was 77.49%, down 0.27 percentage points from the previous week and 6.35 percentage points year-on-year. Qiu Yuecheng, a senior researcher at Xiben Shinkansen, told futures that the slower than expected resumption of production of steel mills was due to debt, environmental protection and other factors, among which the upcoming Tangshan International Horticultural Exposition put forward higher requirements for environmental protection

the environmental protection department of Hebei Province said yesterday that as a major iron and steel Province, Hebei Province will further tighten the environmental protection standards of the iron and steel industry in 2016, and expand the key control cities that implement the special emission limits of iron and steel from the existing six cities to the whole province, so as to promote the transformation and upgrading of iron and steel enterprises and the pace of capacity reduction. In order to prevent the resurgence of obsolete or shut-down enterprises, Hebei Environmental Protection and public security departments have carried out a special inspection action of "looking back and post supervision" of obsolete and shut-down steel enterprises since the end of March this year, focusing on open and covert visits to the equipment that has been clearly eliminated and shut-down, including sintering, blast furnaces, converters, electric furnaces, etc

"at present, most steel mills are quite cautious about resuming production in the later stage, and social capital is not willing to enter the steel industry. I'm afraid the progress of resuming production of steel enterprises will still be slow in the future." Qiu Yuecheng said

according to relevant statistical data, among the 13 listed steel enterprises that have disclosed the 2015 annual report, except Fushun Special Steel and Valin steel, the ending inventory of the other 11 steel enterprises decreased to varying degrees

among them, Chongqing's iron and steel inventory fell the most, with an inventory of 2.78 billion yuan at the end of 2015, down 65.3% from 79.9 billion yuan in the same period last year, focusing on the development of cold rolling, surface treatment, shearing, lightweight, steel restructuring and other deep-processing projects* The inventory amount of listed steel enterprises such as St Bagang, Linggang, Shagang, Minguang, Maanshan Iron and Steel Co., Ltd., Angang iron and Steel Co., Ltd., Daye Special Steel Co., Ltd. and Changbao Co., Ltd. fell by more than 20%

in the context of the increase in port iron ore inventories and the "de capacity" of steel enterprises, the main contracts of iron ore futures have been callback by about 20% from the previous high in the past two weeks, while rebar futures maintain an oscillatory upward trend

a person from an investment company who did not want to be named said that at present, the supply pressure of the black industrial chain is mainly reflected in the variety of iron ore, and there is not much bad news about rebar

"strong steel and weak ore" has greatly increased the profit space of steel mills. According to relevant industry sources, at present, the profit per ton of steel of steel mills is more than 200 yuan, and the profit per ton of steel of steel mills with stronger profitability is more than 300 yuan

"the profit per ton of steel of steel plants in East China and North China can basically reach 300 yuan, which is the highest level in recent years." Qiu Yuecheng said that except for some steel mills with heavy debt pressure, most steel mills were able to turn losses into profits in the first quarter of this year

Qin Jiawei, an analyst at Xinhu futures, said that if the inventory factor is not taken into account, the gross profit rate per ton of steel in coastal areas can reach 400 yuan. It is expected that the pattern of "strong steel and weak ore" will continue, and the profits of steel mills will remain high for some time in the future

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