Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - On August 11, the main contracts of rebar and hot-rolled coil futures rebounded. After the implementation of production restrictions in Tangshan, the spot market transactions in the Beijing-Tianjin-Hebei region became active, and market expectations improved. The steel futures market, which had significantly declined at the end of July and early August, turned upward again recently. It is recommended to view the market with a bullish bias in the short term, but pay attention to the impact of the stock market and risk appetite on the black commodity market [7][11]. 3. Summary by Directory 3.1 Market Review and Future Outlook - **Market Review**: On August 11, the main contracts of rebar and hot-rolled coil futures 2510 oscillated and rebounded, recovering about half of the decline since July 31 and most of the decline since July 30 respectively. Most of the main rebar and hot-rolled coil spot market prices rose. The daily KDJ indicators of the rebar and hot-rolled coil 2510 contracts showed divergent trends, with the J and K values turning upward and the D value continuing to decline. The daily MACD green bars of both contracts narrowed [7][9]. - **Future Outlook**: Tangshan's production restrictions from August 16 to September 3 will affect the daily output of 35 billet-rolling section steel enterprises by about 90,000 tons. If the inhibitory effect of production restrictions on raw material demand is less than the boosting effect of increased steel profits, the market may strengthen again in the short term. It is recommended to view the market with a bullish bias before mid-August, and pay attention to the follow-up rise of the raw material market and the impact of the stock market and risk appetite on the black commodity market [10][11]. 3.2 Industry News - **Economic Data**: In July, the national industrial producer prices and purchase prices decreased month-on-month, but the decline narrowed. The CPI was flat year-on-year and rose 0.4% month-on-month. The core CPI increased by 0.8% year-on-year, reaching the highest level since March 2024. The PPI decreased by 3.6% year-on-year, and the month-on-month decline narrowed for the first time since March [12]. - **Industry Policy**: The market competition order of industries such as coal, steel, photovoltaic, cement, and lithium battery has been continuously optimized, and the prices of production materials have improved marginally [12]. - **Company News**: As of July, 600 million tons of crude steel production capacity and 147 steel enterprises in China have completed the whole-process ultra-low emission transformation. The global steel demand has entered a stage of slow growth or even local decline, and steel enterprises are actively seeking transformation and upgrading. Some steel enterprises' performance has improved, and the industry's profitability has recovered [12]. - **International News**: The average tariff rate in the United States has reached 20.1%, the highest level since the early 1910s. Mongolia's coal exports from January to July decreased by 6.58% year-on-year, and Russia's seaborne coal exports in July increased by 2.65% month-on-month and 0.15% year-on-year. BHP will form an alliance to explore the development opportunities of CCUS technology in Asia [13]. 3.3 Data Overview - The report provides data on the spot prices, production, inventory, and capacity utilization rates of rebar and hot-rolled coil, as well as the basis between Shanghai spot prices and October contracts [15][20][23].

Core Insights - The coal-fired flue gas pressure swing adsorption carbon capture technology developed by the Beijing Low Carbon Clean Energy Research Institute and Zhejiang Electric Power Company has been recognized as internationally leading by the China Coal Industry Association [1] - This technology utilizes solid adsorbent materials to selectively adsorb and efficiently concentrate carbon dioxide from flue gas, featuring low energy consumption, quick start-stop capabilities, stable operation, no secondary pollution, and full electric drive [1] Group 1 - The technology was initiated in October 2021, focusing on the development and demonstration of key carbon capture technologies tailored for coal-fired flue gas characteristics [1] - A comprehensive research approach was adopted, including the development of high-performance adsorbents and low-energy capture processes, culminating in a complete technology demonstration at a scale of 10,000 tons [1] Group 2 - In December 2024, the first industrial demonstration unit for low-pressure adsorption carbon capture was completed, marking a significant milestone in the industry [2] - The demonstration unit achieved a capture energy consumption of 331 kWh per ton of carbon dioxide under non-optimal conditions, laying the groundwork for future 100,000-ton scale projects [2] - The Low Carbon Institute's CCUS center is focusing on cutting-edge technologies in carbon capture and utilization, with plans for further scaling and demonstration of adsorption carbon capture technology in the Zhejiang region [2]

Group 1 - The core viewpoint of the news is that the Bayannur Oilfield in Inner Mongolia has successfully established a large-scale carbon capture, utilization, and storage (CCUS) base, with a total CO2 injection exceeding 70,000 tons as of August 5 [1] - The Bayannur Oilfield, located in the Hetao Basin, became the first oilfield in western Inner Mongolia to achieve an annual production of one million tons of oil since the first high-yield industrial oil well was drilled in 2018 [1] - The oilfield has over 300 production wells and has been utilizing water flooding for oil extraction, achieving a final recovery rate of approximately 20% [1] Group 2 - To achieve water conservation and carbon reduction goals, the Bayannur Oilfield began exploring CO2-driven oil extraction methods in 2020, establishing three CCUS pilot test areas involving over 40 wells, injecting more than 500 tons of CO2 daily [1] - The oilfield relies on a national-level CCUS innovation team to tackle key technologies for efficient CCUS development, gradually building a comprehensive industrial chain technology system that integrates CO2 capture, transportation, storage, and enhanced oil recovery [1] - The Hetao region is utilizing gas injection and water injection technologies to develop oil, achieving efficient linkage of deep, medium, and shallow oil and gas resources while simultaneously advancing geological exploration, drilling, oil extraction, and surface engineering [2]

Core Viewpoint - Shougang Longze has delayed its Hong Kong IPO due to ongoing disputes related to its joint venture, impacting its global offering and listing timeline [2][5][6] Group 1: IPO Delay - Shougang Longze announced a further delay in its Hong Kong IPO, which was initially scheduled for July 14, with listing on July 15 [2] - The delay is attributed to a lawsuit initiated by Hainan Jiyuan Junyi, which has raised concerns regarding investment returns and governance issues within the joint venture [5][6] Group 2: Legal Disputes - The lawsuit claims that Shougang Longze unlawfully increased the investment in the joint venture without approval and set product prices without board consent, allegedly violating Chinese corporate law [6] - Shougang Longze asserts that the claims lack legal basis and intends to actively respond to the lawsuit [6] Group 3: Company Overview - Established in 2011, Shougang Longze focuses on carbon capture, utilization, and storage (CCUS), primarily generating revenue from low-carbon product sales and comprehensive solutions for industrial clients [7] - The company's financial performance has been volatile, with revenues of RMB 390 million, RMB 593 million, and RMB 564 million for 2022, 2023, and 2024 respectively, alongside increasing losses [7][8] Group 4: Revenue Breakdown - In 2024, Shougang Longze's revenue from product sales was RMB 537 million, accounting for 95.3% of total revenue, while comprehensive solutions contributed RMB 26 million, or 4.7% [7][8] - The company has a high dependency on major clients, with revenue from the top five clients representing 82.1%, 86.0%, and 78.9% of total revenue in the respective years [8] Group 5: Shareholding Structure - Prior to the IPO, Shougang Group held approximately 26.54% of Shougang Longze's issued share capital, with other significant shareholders including Shanghai Mingda Industrial and NZ Tang Ming [9]

Group 1 - The US tariff policy and other adverse factors pose significant challenges to chemical exporters in the Gulf Cooperation Council (GCC) region, which consists of six Middle Eastern countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE [1] - The Gulf Petrochemicals and Chemicals Association (GPCA) emphasizes the importance of enhancing cooperation with Asian markets, particularly China, as GCC chemical producers have joint ventures in China, South Korea, Malaysia, and Singapore, processing approximately 2.7 million barrels of crude oil daily and operating over 23 million tons of downstream petrochemical capacity annually [1] - Despite the challenges posed by US tariffs, there are opportunities for GCC chemical exporters, as a 10% baseline tariff could increase the prices of GCC chemical products in the US market, particularly affecting high-volume, price-sensitive products like urea, paraxylene (PX), and polyethylene terephthalate (PET) [1] Group 2 - In 2023, Asia accounted for over half of the total exports from the GCC region, with China, India, and Turkey being the primary markets. If China reduces imports from the US, GCC can fill this gap, provided they act quickly to capture market share and diversify trade partners [1] - The GCC region's chemical producers have a competitive advantage over those relying on naphtha due to fluctuating oil prices, and there is a strong emphasis on optimizing energy usage and focusing on high-value projects [1][2] - GCC chemical companies are shifting investments towards specialty elastomers, crude oil-derived chemicals, and downstream sectors such as packaging and electric vehicle materials, with a utilization rate of approximately 90%, significantly higher than most global peers [2] Group 3 - Supply chain resilience has become a key advantage for GCC chemical producers, who must predict, adapt, and seize opportunities arising from geopolitical conflicts and disruptions [2] - Four strategies have been proposed to address supply chain challenges: flexibility in export routes, transparency from production to end-user, establishing regional buffer stocks in key import markets, and utilizing digital risk forecasting [2] - The use of AI, blockchain, and IoT tools is transforming supply chain management from reactive to predictive, while diversified sourcing and strategic inventory reduce reliance on a single region [2] Group 4 - GCC countries will continue to leverage their cost advantage in natural gas while also committing to energy transition, aiming to adjust 25% to 50% of their energy structure to renewable sources by 2030 [3] - Significant investments are being made in carbon capture, utilization, and storage (CCUS), with the region capturing 4.4 million tons of CO2 annually, accounting for 10% of global CCUS capacity [3] - Hydrogen production is another focus of the GCC's energy transition, with ambitious targets set by Oman, UAE, and Saudi Arabia for annual hydrogen production by 2030 and 2031 [3]

Group 1 - The company, Shougang Longze, plans to conduct an IPO from June 30 to July 4, 2025, offering 20.1598 million H-shares, with 10% allocated for Hong Kong and 90% for international sales, at a price not exceeding HKD 18.88 per share and not lower than HKD 14.50 per share [1] - The company specializes in the Carbon Capture, Utilization, and Storage (CCUS) industry, focusing on producing low-carbon products such as ethanol and microbial protein through carbon capture and utilization technology [1] - Since its establishment in 2011, the company has made significant breakthroughs in applying its proprietary synthetic biology technology for industrial production, including the world's first industrial facility that uses carbon-containing industrial waste gas from steel and ferroalloy plants for fermentation to produce ethanol and microbial protein [1] Group 2 - The company's revenue grew rapidly, increasing by 52.1% from RMB 389.5 million in 2022 to RMB 593 million in 2023, but then decreased by 4.9% to RMB 564 million in 2024 [2] - The company reported losses of RMB 23.9 million, RMB 110 million, and RMB 246 million for the years ending December 31, 2022, 2023, and 2024, respectively [2] - The company's EBITDA (non-IFRS measure) for the years ending December 31, 2022, 2023, and 2024 were RMB 33.1 million, RMB 14.2 million, and -RMB 82.5 million, respectively [2] Group 3 - The company intends to use the net proceeds of HKD 284 million from the IPO for various purposes, including approximately 37.9% for developing SAF production facilities in Baotou, Inner Mongolia, and 21.2% for the second phase of production facilities in Hebei [3] - About 11.4% of the proceeds will be allocated for R&D of strains, production equipment, and smart production management systems to enhance production efficiency, while 14.1% will be used for technological upgrades of four production facilities [3] - The remaining proceeds will be used for new product development (5.3%) and general corporate purposes and working capital needs (10.0%) [3]

Core Viewpoint - Beijing Shougang Longze Technology Co., Ltd. (Shougang Longze) is focused on the carbon capture, utilization, and storage (CCUS) industry, aiming to produce low-carbon products through innovative technologies and provide comprehensive low-carbon solutions [3]. Company Overview - Shougang Longze is the only company in the global CCUS industry that has commercialized and scaled the production of low-carbon products using verified synthetic biology technology [3]. - The company has achieved significant innovations, including the world's first industrial facility that uses carbon-rich industrial waste gas from steel and ferroalloy plants to produce ethanol and microbial protein through fermentation [3]. - The company's ethanol can be used as fuel and as a raw material for products like perfumes, sportswear, detergents, and packaging materials, while its microbial protein is the first novel feed protein raw material in China [3]. Business Model - The primary revenue sources for the company include the sale of ethanol, microbial protein, and by-products such as biogas and crude alcohol, along with providing low-carbon comprehensive solutions to industrial clients [3]. Production Capacity - Shougang Longze operates four production facilities across three provinces in China, with a total annual production capacity of 210,000 tons of ethanol and 23,200 tons of microbial protein [3]. Market Opportunity - The global CCUS industry is projected to grow from an annual investment of $12.6 billion in 2023 to $76.8 billion by 2028, reflecting a compound annual growth rate (CAGR) of 43.5% [4]. - In China, the CCUS industry investment is expected to increase from RMB 21.6 billion in 2023 to RMB 99.3 billion by 2028, with a CAGR of 35.7% [4]. Customer Dependency - The company has a high dependency on a few major clients, with revenue from the top five clients accounting for 82.1%, 86.0%, and 78.9% of total revenue in the respective years [4]. - The largest client contributed 37.5%, 46.5%, and 26.3% to total revenue in the respective years [4]. Financial Performance - The company's revenue for the fiscal years 2022, 2023, and 2024 is approximately RMB 389.5 million, RMB 592.6 million, and RMB 563.6 million, respectively [5]. - The net losses for the same periods are RMB 23.9 million, RMB 110.1 million, and RMB 245.6 million, respectively [5].

Group 1 - Natural gas is recognized for its significant role in the green low-carbon transition, ensuring energy security and resilience while paving the way for renewable energy and emerging technologies [1][2] - Experts emphasize that natural gas will serve as a "key bridge" in energy transition, with its low carbon intensity and potential for growth compared to other fossil fuels [2][3] - The global LNG demand is projected to surge by 60% by 2040, primarily driven by the Asia-Pacific region, with 90% of LNG demand in Asia coming from China, Japan, South Korea, India, and Thailand [3][4] Group 2 - China's natural gas production is expected to reach 246.5 billion cubic meters in 2024, ranking fourth globally, with significant contributions from major gas fields [4][5] - The development of unconventional natural gas has made breakthroughs, with production exceeding 100 billion cubic meters [4] - China's natural gas demand is forecasted to grow from 422 billion cubic meters last year to 570 billion cubic meters by 2030, continuing to rise to approximately 620 billion cubic meters at peak [5][6] Group 3 - Despite the growth potential, challenges remain for the natural gas transition, including high dependence on foreign energy, the need for market price reforms, and competition from rapidly advancing renewable technologies [6][7] - The industrial sector's energy consumption from natural gas is currently only 10%, compared to nearly 40% for coal, indicating significant room for growth [7] - Experts suggest enhancing exploration and development technology, promoting digital transformation, and optimizing energy pricing mechanisms to improve natural gas market competitiveness [7][8] Group 4 - Diversifying energy supply, fostering technological cooperation, and regional collaboration are essential for building energy resilience [8][9] - Asia is expanding natural gas infrastructure to optimize and upgrade regional energy structures, with significant projects like the completion of the China-Russia East Route natural gas pipeline [9][10] - The increase in China's LNG terminal capacity is expected to have profound impacts on the Asian and global natural gas markets, solidifying Asia's dominant position and enhancing global LNG trade [10]

Core Points - The 29th World Gas Conference (WGC2025) is being held in Beijing, marking the first time the event has taken place in China in over 90 years, with significant participation from global energy companies and a high percentage of international speakers [1][3] - The conference aims to promote the development of China's gas industry and facilitate international cooperation, showcasing China's achievements and fostering dialogue with global counterparts [3][4] Group 1: Conference Overview - The conference is organized by the International Gas Union (IGU), which has been a key player in promoting gas as a sustainable energy source since its establishment in 1931 [1] - The event will feature over 80 forums and activities, including financial, digital, women's, and youth forums, attracting more than 3,000 representatives from around 70 countries [1][3] - The exhibition area spans 50,000 square meters, the largest in WGC history, with around 300 companies expected to participate [1][4] Group 2: Industry Significance - The conference serves as a platform for China to demonstrate its development philosophy and achievements in the gas sector, promoting high-quality and sustainable development globally [3] - It facilitates deep exchanges and idea sharing between China's gas industry and international peers, enhancing mutual understanding [3] - The event is expected to strengthen international cooperation in the gas sector, leading to win-win outcomes [3] Group 3: Participation and Exhibitors - Over 200 companies are participating in the conference, with more than 50% of the exhibition space occupied by international firms, including major players like ExxonMobil, Shell, and BP [4][8] - Chinese exhibitors include key state-owned enterprises such as China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (Sinopec), and China National Offshore Oil Corporation (CNOOC) [4] Group 4: Technological Innovations - The National Pipeline Network Group showcased an open service and trading platform that enhances resource allocation efficiency and supports a growing number of downstream users [7][9] - The "Deep Sea No. 1" project represents a significant advancement in China's offshore oil and gas exploration capabilities, utilizing innovative technologies [10][11] - The CCUS project by Sinopec demonstrates China's commitment to low-carbon energy solutions, with the capacity to reduce CO2 emissions significantly [15]

Core Insights - The research team at the Puguang gas field is focused on developing a customized carbon capture technology that addresses the challenges posed by high humidity in the gas field environment [1][2] - The team has achieved a significant reduction in regeneration energy consumption, reaching 2.7 GJ/ton of CO2, which is 30% lower than traditional carbon capture methods [2] - The newly formulated composite amine solvent has a stable carbon capture efficiency of 92%, contributing to China's carbon reduction goals [3] Group 1 - The research team is conducting experiments on sulfur recovery tail gas carbon capture technology, emphasizing the need for customized solutions due to the high humidity conditions [1] - The team identified that the humidity correction factor was underestimated, leading to the development of a new mathematical model for better data accuracy [2] - The adjustments made to the solvent circulation and temperature control resulted in a successful reduction of energy consumption for CO2 regeneration [2] Group 2 - The average age of the research team is 32, indicating a young and dynamic workforce dedicated to achieving breakthroughs in carbon capture technology [3] - The successful experiments mark a significant step towards meeting China's dual carbon goals, showcasing the importance of innovation in the energy sector [3]