Highlights of the report reprint the column: Coke prices soared 70% in three months. How high can steel prices rise? Steel prices rose sharply during the peak season of March and April 2016, mainly due to a mismatch between supply and demand in the steel industry. However, the rise in steel prices in September and October is mainly due to rising costs. Although demand for steel has also picked up recently, the operating rate of steel mills was significantly higher than in March and April. Although the mismatch between supply and demand in the steel industry has been repaired, the coal industry is short of resources due to the 276-day production system. In August and September 2016, the prices of coke and coking coal rose sharply during the steel mill replenishment phase. Overall, due to the slow release of coal mine production capacity and the shortage of automobile transportation, the short-term “double coke” price performance is still strong, and the cost of rebar per ton of steel has exceeded 2,400 yuan/ton. Since the increase in raw material prices is higher than that of steel, the profit of steel mills is still not optimistic, and maintenance efforts continue to be stepped up. At the same time, the domestic industrial economy has improved, and with infrastructure investment boosted, the overall demand for downstream steel is improving, and the relationship between supply and demand has improved. Steel inventories fell significantly in the first week after the holiday, and are still at historically low levels. In the short term, there is a strong bullish atmosphere in the market, and it is expected that there is still room for steel prices to rise. However, it is also important to note that the peak season for the steel market has come to an end. If the scarcity of coal and coke resources in winter is alleviated, there may be a pullback in the price of coal and coke steel. Information announcement: Taigang Stainless's net profit for the third quarter increased by 1,371 billion yuan year-on-year [Important Information] 1. Guangxi Daily: On October 17, the 3.5 million ton steel project in the Malaysia-China Kuantan Industrial Park began a syndicated loan withdrawal process with a financing amount of nearly 1 billion US dollars. This is also Guangxi's largest direct loan financing project for overseas projects at present. 2. I love steel: The International Steel Association (Worldsteel) said at a conference held in Dubai that global steel demand in 2017 is expected to increase 0.5% over the previous year to 1.51 billion tons, and demand is expected to rise 0.2% to 1,501 billion tons in 2016. [Important Announcement] Taigang Stainless: The company released its three-quarter report. The company achieved operating income of 14.867 billion yuan in the third quarter, a year-on-year decrease of 10.23%, a year-on-year growth rate of -25.23% in the second quarter; operating costs of 12.740 billion yuan, a year-on-year decrease of 17.67%, a year-on-year growth rate of -33.95% in the second quarter; net profit attributable to the parent company in the third quarter was 541 million yuan, the same period last year was -830 million yuan; the EPS for the third quarter was 0.10 yuan, and the EPS for the second quarter was 0.15 yuan.
【长江证券】农发种业:携手中科院,合作布局转基因育种研发
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