China’s steel scrap exports decline 98% YoY in Jan

The "three red lines” refers to the 70% ceiling on liabilities to assets after excluding advance proceeds from projects sold on contract, 100% cap on net debt to equity, and cash to short-term borrowing ratio of at least one. One year after the introduction of the policy, the average asset-liability ratio and the average asset-liability ratio after excluding advance receipts at the top 100 real estate companies stood at 78.7% and 70.9%, respectively, which was a year-on-year decline of 0.7 percentage point and 0.9 percentage point.

A roundup of the ferrous metals headlines of the week.

Futures and spot prices of ferrous metals fluctuated last week. The futures prices of coking coal and coke weakened amid looser control after July 1, while spot prices stood stable.

Operating rates of blast furnaces at steel mills fell 2.7 percentage points from a week ago and decreased 3.8 percentage points from a month ago to 82.2% as of July 1, SMM survey showed.

The China Iron and Steel Association (CISA) reported that crude steel output across major mills in China averaged 2.4 million mt per day in the second ten days of June, up 2.57% from early June and up 15.99% from the same period a year ago.

The China Iron and Steel Association (CISA) reported that crude steel output across major mills in China averaged 2.34 million mt per day in the first ten days of June, up 2.15% from late May and up 13.33% from the same period a year ago.

In recent years, the steel industry has witnessed a series of reforms. From key words such as the "supply-side reform" in 2016, the "capacity reduction" in 2017, the "ultra-low emission transformation" in 2018, and the "accelerating state-owned enterprise reform" in 2019, "high-quality development" in 2020 and "carbon peak", "carbon neutrality", "reduction of crude steel output", "promoting mergers and reorganization of the steel industry", "high-quality development of the steel industry” in 2021, we can see that China's steel industry is gradually moving towards green development.

SMM China Steel Scrap & EAF Monthly Keeping you in touch with the Chinese ferrous metals markets

Operating rates of blast furnaces (BFs) at Chinese steelmakers extended declines as decreased profits prompted steel mills to conduct maintenance.

Rebar fundamentals are in recovery as supply declines and pressure from the rainy season on downstream demand eases. This, together with strength in rebar futures, will support spot rebar prices this week. The upsides room of prices, however, will be limited as overall stocks linger at high levels and demand in some Chinese regions remains depressed by rainy weather.