[see steel market on SMM map] billet plummeting steel enterprise profits are compressed part of the area steel mills are to be overhauled

Crude oil fell sharply again this week, putting pressure on all basic metals. Affected by the macro environment and weakening fundamentals, billet prices fell by 130 yuan per ton on the 20th, the biggest decline in a single day since March, the market trading mentality collapsed, and spot prices accelerated the downward trend. SMM analysis believes that to sum up, as the market steel prices continue to decline, the profits of steel enterprises are constantly compressed, a small number of steel mills have maintenance plans, but at present, most steel enterprises still have profits, there is no reduction plan. Domestic construction steel prices fell sharply, the market transaction is light. The decline of the snail disk did not stop, the transaction was cold, but with the correction of the snail low position, the market low resource volume warmed up, the price stopped falling and stabilized, and the mentality of the merchants was also alleviated. But for now, market sentiment is still on the short side.

China is planning a merger and restructuring of Baowu Group and Angang Group to meet the government's industry concentration targets for the next few years and Baowu's own future production targets, Bloomberg quoted people familiar with the matter as saying. Boosted by the news, Angang shares (SZ000898), Baosteel shares (SH600019) rose in the afternoon of the 21st, Baosteel Packaging (SH601968) rose by the limit, Angang shares (SZ000898) rose more than 6%. SMM analysis shows that the current concentration of the iron and steel industry is about 40%, far lower than the level of developed countries. From the point of view of the development plan of the iron and steel industry in Xuzhou and other places, merger and reorganization is the only way for the development of the industry. However, according to the latest news, Wang Yidong, deputy general manager of Anshan Iron and Steel Group and chairman of Anshan Iron and Steel Group, said he was unaware of the news of the restructuring.

[billet dropped sharply on Tuesday]

Macro factors superimposed fundamentals weakened, 21 billet prices fell 130 yuan / ton, the biggest one-day decline since March, market trading mentality collapse, spot prices accelerated down.

[inspection and repair of Shaanxi Iron and Steel Co., Ltd.]

Shaanxi Iron and Steel Group plans to overhaul the blast furnace for 60 days from late November, which will affect the total output of about 580000 tons. During the period of blast furnace maintenance, the rolling line will be overhauled in turn. On November 20, 2018, Hancheng Base overhauled a 1800m / L blast furnace for a period of 60 days.

[overhaul of Jiyuan Iron and Steel]

Affected by the cross-peak production in autumn and winter, Jiyuan Steel Plant stopped production of a 600m / L blast furnace on November 15 and resumed production in March 2019. At the same time, the maintenance of the second rolling rod line is scheduled to be overhauled for 10 days from December 9.

[Hangzhou thread fell ahead of the lead]

In early November, due to the continued weakness of futures and frequent attacks on the policy, the mentality of spot businesses collapsed and the market entered the downward channel. Take the Hangzhou market as an example, on the 20th Shagang quoted price of 4150 fell 610, or 12.8%, from the previous high of 4760. As steel prices fall rapidly, steel mill profits are being squeezed.

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Consult information consultant Lu Qingping 021 51595781

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