Group 1 - The report highlights a low market sentiment with the Shanghai Composite Index falling below 2800, indicating a need for policy signals to improve the situation [1][4] - The A-share market experienced a significant decline in trading volume, dropping to 519.3 billion yuan, a decrease of 67.5 billion yuan from the previous week, reflecting a continued lack of market activity [4][12] - The report notes that the overall market is characterized by weak performance in large-cap stocks and a lack of sustainable opportunities across various sectors, leading to a persistent loss effect [4][13] Group 2 - The report indicates that U.S. inflation data was slightly stronger than expected, reducing concerns about an economic recession, while the domestic economic inflation data remains low, increasing the necessity for policy measures [4][15] - A significant increase in A-share risk premium was observed, reaching a new high for the year, as the equity market remains weak and the bond market rises [8][9] - The report emphasizes the importance of upcoming policy signals, particularly the LPR quotation on September 20, which could influence market sentiment amid expectations of potential interest rate cuts and fiscal measures [15]

Investment Rating - The report does not explicitly provide an investment rating for the industry [1]. Core Insights - The annualized yield of cash management financial products has decreased to 1.71%, down 3 basis points from the previous week [1][7]. - The annualized yield of money market funds is at 1.52%, also down 1 basis point from the previous week, with a yield gap of 19 basis points between cash management products and money market funds, narrowing by 2 basis points [1][7]. - The annualized yield for closed-end fixed-income financial products over the past six months is 3.67%, an increase of 8 basis points from the previous week [2][9]. - The annualized yield for closed-end fixed-income financial products over the past year is 3.25%, up 1 basis point from the previous week [2][9]. - The average compliance rate for financial products maturing from September 2 to September 8, 2024, is 53%, an increase of 8% from the previous week [11][12]. Summary by Sections 1. Cash Management Products 7-Day Annualized Yield - As of September 8, 2024, the 7-day annualized yield for cash management financial products is 1.71%, a decrease of 3 basis points from the previous week [1][7]. 2. Performance Review of Financial Products - The annualized yield for daily open fixed-income non-cash financial products over the past month is 2.17%, unchanged from the previous week [9]. - The annualized yield for closed-end fixed-income financial products over the past six months is 3.67%, an increase of 8 basis points [2][9]. - The annualized yield for closed-end fixed-income financial products over the past year is 3.25%, up 1 basis point [2][9]. 3. Maturity and Compliance Status of Financial Products - From September 2 to September 8, 2024, the total scale of maturing financial products is 290.3 billion, with an average compliance rate of 53%, up 8% from the previous week [11][12]. - The compliance rate for closed-end products is 76%, which is higher than the overall compliance rate [11][12].

Investment Rating - The investment rating for the iron ore industry is "Recommended" (maintained) [3] Core Viewpoints - The iron ore supply has shown a significant decline in shipments, down 12.26%, while demand has slightly increased by 0.78% [1] - The overall supply-demand balance remains loose, with high port inventories continuing to exert pressure on iron ore prices, which are expected to remain weak and volatile in the near term [3][4] Supply Summary - During the week of August 31 to September 6, the total shipment of iron ore from Australia and Brazil was 22.947 million tons, a decrease of 3.207 million tons from the previous week, representing a decline of 12.26% [1] - The shipment volumes from major miners to China were as follows: Rio Tinto at 4.319 million tons (-14.29%), BHP at 4.939 million tons (+3.07%), Vale at 5.34 million tons (-31.98%), and FMG at 4.247 million tons (+33.64%) [1][6] - The total port inventory of imported iron ore at 45 ports reached 154 million tons, an increase of 365,700 tons (0.24%) from the previous week [3][5] Demand Summary - The average daily iron water production has rebounded to 2.2261 million tons, marking a 0.78% increase, ending a six-week decline [1][7] - The average daily consumption of imported iron ore was 2.7403 million tons, reflecting a slight increase of 0.68% [7] - The capacity utilization rate of blast furnaces increased to 83.6%, up 0.64 percentage points, indicating a recovery in steel production [7] Price and Profitability Summary - The average price index for iron ore (62% Fe: CFR: Qingdao Port) was $92.79 per ton, down $7.84 (7.79%) from the previous week [1][7] - The profitability rate of steel enterprises rose to 4.33%, showing improvement in the financial health of the sector [7]

Investment Rating - The investment rating for the magnesium alloy industry is "Recommended" (maintained) [2] Core Viewpoints - The overall profitability growth of the magnesium alloy sector is slowing, with research and development capabilities becoming key to unlocking growth potential [2][3] - Companies are actively expanding their research and market development, focusing on applications in hydrogen storage, automotive lightweighting, and low-altitude aviation components [3][36] Summary by Sections 1. Performance of Magnesium Alloy Listed Companies in H1 2024 - The revenue of Baowu Magnesium Industry in H1 2024 was 4.075 billion, a year-on-year increase of 15.37%, while net profit decreased by 1.28% to 120 million [8] - Wan Feng Ao Wei reported revenue of 7.372 billion, a decrease of 1.8%, but net profit increased by 24.93% to 398 million [8] - Xingyuan Zhuo Magnesium achieved revenue of 183 million, a year-on-year increase of 7.11%, with net profit decreasing by 5% to 37 million [8] 2. R&D and Market Expansion - Companies are enhancing their technical and business research innovations, actively exploring domestic and international markets [3][36] - Baowu Magnesium has signed a strategic cooperation agreement for magnesium-based solid hydrogen storage, while Wan Feng Ao Wei focuses on lightweight automotive components and general aviation aircraft manufacturing [36][37] 3. Financial Stability and Cash Flow - The overall asset-liability ratio of the magnesium alloy industry remains stable, with Baowu Magnesium and Wan Feng Ao Wei around 50%, while Xingyuan Zhuo Magnesium operates with a low asset-liability ratio of 7.58% [23] - Cash flow in H1 2024 is generally sufficient but shows a downward trend compared to H1 2023, with Wan Feng Ao Wei reporting the highest operating cash flow of 485 million [29] 4. Investment Returns and Capital Operations - The return on assets (ROA) for the magnesium alloy sector ranges from 0.9% to 3.5%, while return on equity (ROE) is between 2% and 6%, indicating significant variation among companies [31] - Baowu Magnesium is actively advancing several self-built investment projects, including a high-performance magnesium alloy project with an expected investment return of 837 million [31][32]

Investment Rating - Investment rating: Recommended (maintained) [2] Core Viewpoints - The acquisition of Salt Lake Co. by China Minmetals is expected to accelerate the optimization of domestic salt lake resources [2] - The establishment of the China Salt Lake Group aims to enhance resource integration and development in the salt lake industry, particularly in Qinghai [3] - The acquisition reflects confidence in the strategic value of salt lake assets and the potential for scale advantages post-integration [5] Summary by Relevant Sections Potash Business - The global potash market is highly concentrated with a CR5 of 74%, and Salt Lake Co. holds over 30% of domestic production [2] - The company has mining rights for approximately 3,700 square kilometers in the Qarhan Salt Lake, with a designed production capacity of 5 million tons of potassium chloride and a gross margin of 53.5% in the first half of 2024 [2] Lithium Business - Salt Lake Co. has stable production and sales of lithium carbonate, with a production capacity of 30,000 tons and a production volume of 19,000 tons in the first half of 2024, representing a year-on-year growth of 34% [2] - The average selling price of lithium carbonate was 94,000 yuan/ton, with a gross margin of 60.2% [2] Future Price Outlook - Despite a recent decline in lithium carbonate prices, a stabilization is expected as the industry enters a peak season [5] - The bottom price for potash is anticipated to be confirmed due to rigid demand and no significant production increases expected from 2024 to 2026 [5]

Investment Rating - Investment rating: Recommended (maintained) [2] Core Views - The overall industry outlook remains positive, with a focus on the trends in raw material prices, monthly sales, and the implementation of industry regulations [2] - The domestic and international development prospects for the new energy vehicle industry are certain, making the sector worthy of attention [2] - It is expected that individual stock performance will show differentiation, suggesting a focus on leading companies in specific segments [2] Summary by Sections Industry Weekly Data Tracking - **Lithium Carbonate Market**: The average price of industrial-grade lithium carbonate is 68,000 yuan/ton, down 400 yuan/ton (5.56%) from last week. Battery-grade lithium carbonate averages 71,000 yuan/ton, also down 400 yuan/ton (5.33%) [8][9] - **Lithium Hydroxide Market**: The average price for battery-grade lithium hydroxide is 71,000 yuan/ton, down 150 yuan/ton from last week [14] - **NCM Material Prices**: The price for NCM 523 single crystal material is 108,500 yuan/ton, while NCM 622 multi-crystal is 109,000 yuan/ton, both down 50 yuan/ton [20] - **Negative Electrode Material Prices**: The market reference price is 32,378 yuan/ton, down 760 yuan/ton (2.29%) [27] - **Electrolyte Prices**: The average price for lithium iron phosphate electrolyte is 18,300 yuan/ton, while the average for ternary/conventional electrolyte is 25,000 yuan/ton, both stable from last week [35] - **Separator Prices**: The average price for 7um wet separators is 0.84 yuan/square meter, and for 16um dry separators is 0.43 yuan/square meter, both stable [41] Downstream Battery Market - **Battery Installation Volume**: In the first seven months of 2024, the cumulative installation volume of power batteries in China reached 244.9 GWh, a year-on-year increase of 32.8% [2] - **Electric Vehicle Market**: In the same period, the production and sales of new energy vehicles reached 5.911 million and 5.933 million units, respectively, with year-on-year growth of 28.7% and 31.1% [2] - **Global Battery Usage**: The total usage of batteries for electric vehicles (EV, PHEV, HEV) globally was approximately 434.4 GWh, a year-on-year increase of 22.4% [2] Industry Dynamics - **Top 10 Battery Manufacturers**: The top 10 global battery manufacturers include CATL, BYD, LG Energy Solution, SK On, and others, with Chinese manufacturers accounting for 70% of the global market [2]

Investment Rating - The investment rating for the steel industry is "Recommended" (maintained) [2] Core Viewpoints - The average daily pig iron output has stopped declining and is showing signs of recovery, with demand exhibiting a long-term downward trend [1][3] - Steel prices are experiencing fluctuations downward, with construction material profits recovering better than plate materials [3] - The overall steel demand has slightly decreased week-on-week, indicating that the anticipated demand improvement during the "Golden September" period still requires further observation [1][3] Summary by Sections 1. Weekly Data Changes in the Steel Industry - The average daily pig iron output rose to 2.2261 million tons, an increase of 0.78% week-on-week [8] - The overall production of the five major steel products reached 8.0117 million tons, up 2.89% week-on-week [1] - The high furnace operating rate increased to 77.63%, up 1.22 percentage points [8] 2. Weekly Data Trends in the Steel Industry - Total steel inventory decreased to 15.092 million tons, down 3.4% week-on-week [2] - The inventory of construction materials contributed significantly to the overall inventory reduction [2] - The apparent consumption of five major steel products totaled 8.5492 million tons, down 0.31% week-on-week [1] 3. Industry News and Company Dynamics - On September 6, the Hebei Provincial Development and Reform Commission released a draft management method for coal consumption substitution in key areas [19] - Yunnan Yuxi Xianfu Steel Group's 1 million tons/year coking project commenced construction, with a total investment of 2.2 billion yuan [19] - Fujian Long Steel's first blast furnace was ignited, marking the full production of the first phase of the project [19]

Group 1 - The report highlights a significant decline in the Shanghai Composite Index, which has fallen below 2800, indicating a weak market sentiment that awaits policy signals for improvement [1][4]. - The A-share market has experienced a continued low trading activity, with average daily turnover dropping to 586.8 billion yuan, a decrease of 19.5 billion yuan from the previous week, reflecting a lack of positive market sentiment [1][11]. - The report notes that the valuation percentiles of major indices, including the Shanghai Composite Index and CSI 300, have shown a significant decline, indicating a bearish trend in the market [6][7]. Group 2 - Concerns over economic recession have risen due to disappointing overseas economic data, coupled with high uncertainty surrounding the upcoming U.S. elections, leading to adjustments in overseas stock markets [1][4]. - The report emphasizes the necessity for stronger policy measures to enhance market expectations, as the current economic pressures and insufficient domestic demand continue to weigh on the market [1][4]. - The report indicates a shift in market style towards speculative trading, with a general lack of profitability across industry sectors, suggesting a cautious approach until substantial policy changes are implemented [1][4][12]. Group 3 - The report tracks the A-share risk premium, which has increased compared to the previous week, reaching a new high for the year, indicating heightened risk perceptions among investors [7][8]. - The report also notes a decline in the stock-bond ratio, suggesting a shift in investor preference towards bonds amid the weak equity market [9]. - The industry rotation index has shown an increase, indicating a faster rotation among sectors, although the overall profitability remains weak [12][14]. Group 4 - Upcoming key economic indicators to watch include China's CPI and PPI data on September 9, and U.S. CPI data on September 11, which may influence market expectations and policy decisions [14]. - The report suggests that a rapid decline in inflation could lead to more aggressive interest rate cuts by the Federal Reserve, while slower declines may result in a more gradual approach [14].

Investment Rating - The investment rating for the steel industry is "Recommended" [2] Core Insights - The Korean steel industry entered a platform period around the early 21st century, with POSCO responding to declining profits during this reduction phase by cutting capital expenditures and reducing debt levels [2][21] - The unit GDP steel consumption in Korea has decreased from 7248 tons per billion USD in 2001 to 3192 tons per billion USD in 2022, indicating a shift in demand dynamics [2][11] - POSCO has maintained a crude steel production of over 35 million tons despite domestic demand challenges, adjusting its product mix towards higher value-added products [21][29] Summary by Sections 1. Development of the Korean Steel Industry - The Korean steel industry began in the 1960s and has gone through three main phases: initial entry (1968-1972), gradual catch-up (1973-1988), and rapid expansion (post-1989) [9][15] - POSCO played a crucial role in the development of the Korean steel industry, with significant government support and international assistance from Japan [15][17] 2. Economic Context - Korea's GDP growth has slowed from an average of 7.2% from 1991-2000 to 3.5% from 2001-2023, reflecting a transition from rapid industrialization to a more stable growth phase [6][7] - The industrial value added as a percentage of GDP has fluctuated, stabilizing between 32%-34% since 2010 [7] 3. POSCO's Strategic Responses - POSCO has not significantly reduced production but has instead focused on reducing capital expenditures and debt, with capital expenditures dropping from 65.7 trillion KRW in 2013 to 25.6 trillion KRW in 2015 [25][28] - The company has also reduced its R&D spending, which fell from 5.92 trillion KRW in 2011 to 5.37 trillion KRW in 2022 [28] 4. Investment Recommendations - Chinese steel companies are advised to learn from POSCO's experience by adjusting product structures, accelerating mergers and acquisitions, and reducing capital expenditures and debt levels to navigate similar challenges [31]

Investment Rating - The report does not explicitly provide an investment rating for the industry [1]. Core Insights - The cash management products' 7-day annualized yield is 1.74%, remaining stable compared to the previous week [7][9]. - The yield gap between cash management products and money market funds is 21 basis points (BP), unchanged from the previous week [7]. - The 1-month annualized yield for non-cash fixed income products is 2.17%, which has decreased by 31 BP from the previous week [9]. - The 6-12 month fixed income products have a 6-month annualized yield of 3.59%, down by 12 BP from the previous week [9]. - The 1-3 year fixed income products show a 1-year annualized yield of 3.24%, decreasing by 1 BP from the previous week [9]. Summary by Sections 1. Cash Management Products 7-Day Annualized Yield - As of September 1, 2024, the cash management products' yield is 1.74%, consistent with the previous week [7]. 2. Performance Review of Wealth Management Products - The report indicates that the average yield for non-cash fixed income products over the past month is 2.17%, reflecting a decline of 31 BP [9]. - The 6-month annualized yield for fixed income products with a maturity of 6-12 months is 3.59%, down by 12 BP [9]. - The 1-year annualized yield for 1-3 year fixed income products is 3.24%, showing a slight decrease of 1 BP [9]. 3. Maturity and Compliance Status of Wealth Management Products - From August 26 to September 1, 2024, the total maturity scale of wealth management products is 280.9 billion, with an average compliance rate of 45%, which is a decrease of 4% from the previous week [11]. - Companies achieving a 100% compliance rate include Bohai Bank Wealth Management and Goldman Sachs ICBC Wealth Management [11]. - Closed-end products show a better compliance rate, averaging 75%, which is higher than the overall compliance rate [11].