Report Industry Investment Rating - The industry investment rating is "Bullish" [1] Report's Core View - The fundamentals of the steel industry are stronger than expected, with high molten iron production and steel inventory reduction [1] Summary by Related Catalogs Price - The Shanghai Composite Index was at 3,840, with a weekly decline of 1.5% and a year-to-date increase of 14.6% [3] - The CSI 300 Index was at 4,514, with a weekly decline of 2.2% and a year-to-date increase of 14.7% [3] - The SW Steel Index was at 2,545, with a weekly decline of 2.0% and a year-to-date increase of 21.1% [3] - The prices of various steel products and raw materials showed different degrees of change, such as the price of HRB400 20mm rebar was 3,210 yuan/ton, with a weekly change of 0.0% and a year-to-date decline of 5.9% [3] Inventory - The total social inventory of five major steel products was 1,125 tons, with a weekly decline of 0.2% and a year-to-date increase of 48.3% [5] - The total steel mill inventory of five major steel products was 456 tons, with a weekly decline of 3.4% and a year-to-date increase of 30.3% [5] - The iron ore port inventory was 14,282 tons, with a weekly increase of 1.8% and a year-to-date decline of 3.9% [5] Supply and Demand - The weekly production of five major steel products and the daily average molten iron production showed different trends over the years [9] - The blast furnace and electric furnace operating rates and capacity utilization rates in China showed different trends over time [12] - The profitability rate of steel mills and the apparent demand for rebar in China were presented [15] Stock Price Performance - The top 5 stocks in terms of weekly price increase were Lingang Co., Ltd., Baotou Steel Co., Ltd., etc., and the bottom 5 stocks were Jiuli Special Materials Co., Ltd., Shougang Co., Ltd., etc. [18][19]

Report Overview - Report Type: Steel Daily Review [1] - Date: May 15, 2024 [2] - Research Team: Black Metal Research Team [3] Industry Investment Rating - Not provided in the report Core Viewpoints - Currently, the production of the top five steel products has slightly declined, inventory has increased, and the demand for rebar and hot-rolled coils has fallen from its peak. However, there are multi-dimensional signs of recovery in the real estate market, and the steel demand in the automotive, shipbuilding, and machinery industries generally maintains a high growth trend. With the easing of Sino-US tariffs and increased expectations of export rush, the downstream demand outlook has improved. In the short term, the futures prices of rebar and hot-rolled coils are expected to show a slightly stronger and volatile trend [10] Summary by Directory 1. Market Review - On May 14, the main futures contracts 2510 of rebar and hot-rolled coils opened low and closed high, rising significantly, while the main futures contract 2507 of stainless steel fluctuated upward. The KDJ indicators of the daily lines of rebar and hot-rolled coil 2510 contracts diverged upward, and the MACD red bars of the daily lines of both contracts expanded [5][8] - The trading data of the main steel futures contracts on May 14 are as follows: - RB2510: The previous closing price was 3,079 yuan/ton, the opening price was 3,084 yuan/ton, the highest price was 3,133 yuan/ton, the lowest price was 3,067 yuan/ton, the closing price was 3,127 yuan/ton, with a daily increase of 1.23%. The trading volume was 2,134,942 lots, the open interest was 2,111,525 lots, a decrease of 39,651 lots, and the capital inflow/outflow was -0.15 billion yuan [5] - HC2510: The previous closing price was 3,215 yuan/ton, the opening price was 3,220 yuan/ton, the highest price was 3,269 yuan/ton, the lowest price was 3,207 yuan/ton, the closing price was 3,267 yuan/ton, with a daily increase of 1.27%. The trading volume was 801,521 lots, the open interest was 1,351,894 lots, a decrease of 2,694 lots, and the capital inflow/outflow was 0.43 billion yuan [5] - SS2507: The previous closing price was 12,930 yuan/ton, the opening price was 12,930 yuan/ton, the highest price was 13,120 yuan/ton, the lowest price was 12,910 yuan/ton, the closing price was 13,080 yuan/ton, with a daily increase of 1.16%. The trading volume was 142,909 lots, the open interest was 131,758 lots, an increase of 6,744 lots, and the capital inflow/outflow was 0.75 billion yuan [5] - The spot market prices and changes of rebar and hot-rolled coils on May 14 are as follows: - Rebar (HRB400E: 20mm): The prices in Shanghai, Hangzhou, Beijing, and other places were 3,250 yuan/ton, 3,240 yuan/ton, 3,200 yuan/ton, etc., with price increases ranging from 10 to 40 yuan/ton [8] - Hot-rolled coils (4.75mm): The prices in Shanghai, Hangzhou, Beijing, and other places were 3,320 yuan/ton, 3,330 yuan/ton, 3,330 yuan/ton, etc., with price increases ranging from 0 to 60 yuan/ton [8] 2. Industry News - According to data released by the China Iron and Steel Association, in early May 2025, key steel enterprises produced 22.05 million tons of crude steel, with an average daily output of 2.205 million tons, a 0.2% increase in daily output compared to the previous period; 19.9 million tons of pig iron, with an average daily output of 1.99 million tons, a 1.6% increase in daily output; and 20.83 million tons of steel products, with an average daily output of 2.083 million tons, an 8.4% decrease in daily output. The steel inventory of key steel enterprises was 16.06 million tons, a 5.0% increase from the previous ten-day period, a 29.8% increase from the beginning of the year, a 0.1% increase from the same period last month, a 1.4% decrease from the same period last year, and an 8.8% decrease from the same period the year before last [11] - The spokesperson of the Ministry of Commerce stated that strategic mineral export control is related to national security and development interests. To prevent the illegal outflow of strategic minerals, it is necessary to strengthen control over all links of the production and supply chain, starting from the source and involving all aspects from mining to export. All departments need to cooperate in their work, strengthen daily supervision, and promptly detect potential risks. Local governments should implement their regulatory responsibilities, comprehensively investigate relevant business entities in their regions, understand the production, operation, and flow of strategic minerals, and guide local enterprises to improve their compliance awareness and capabilities [11] - According to Mysteel, an alloy plant in Ulanqab, Inner Mongolia, recently reduced production at two 33,000KVA ferrosilicon-manganese alloy submerged arc furnaces, expected to affect the daily output by about 400 tons. A large ferrosilicon-manganese enterprise in Chongqing shut down two submerged arc furnaces starting from 12:00 on May 12, 2025, with the resumption time to be determined, affecting a daily output of 400 tons [11] - The UK Trade Remedies Authority (TRA) recommended on Tuesday that country-specific quota caps should be imposed on certain categories of steel imported into the UK to protect the UK's steel production industry. The quota cap measures will take effect on October 1 this year [11] 3. Data Overview - The report provides multiple data charts, including the spot prices of rebar and hot-rolled coils in major markets, the weekly production of the top five steel products, the steel mill inventory of the top five steel products, the social inventory of rebar and hot-rolled coils in major cities, blast furnace and electric furnace operating rates and capacity utilization rates, the national daily average pig iron output, and the apparent consumption of the top five steel products [14][16][19]