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Thursday 6th July 2017Issue 2586

Mysteel Shanghai Rebar (HRB400 20mm) and HRC (Q235B 4.75mm)

Vice President:Amy Ren [email protected]

Head of Market Intelligence:Atilla Widnell [email protected]

Editors:Olivia Zhang [email protected]

Rebecca [email protected]

Industry & Market News 2

Chinese Long Steel Prices 4

Chinese Flat Steel Prices 5

Key Indicators & Analysis 6

Maintenance & Restrictions 7

Capacity & Production 8

Tangshan Billet Indicators 11

Rebar Inventories 12

Wire Rod Inventories 13

HRC Inventories 14

CRC Inventories 15

Plate Inventories 16

About Mysteel 17

Copyright Agreement 18

Contents

Editorial

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4500Rebar HRC

Chinese long products prices firm in response to tighter market fundamentals

Mysteel’s average rebar price for HRB400 20mm grade across 25 major cit-ies inched RMB7/t higher day-on-day to RMB3,847/t, EXW (incl. tax), as mar-ket fundamentals remained tight and sentiment on the outlook for near-term steel demand was still relatively optimistic. That said, relatively higher-priced steel products have resulted in lower transaction volumes while demand has also softened due to heavy rains in the south and high temperatures in the north of China. In fact, we note that the volume of transactions for con-struction steel products has fallen markedly to 167,341 tonnes yesterday, compared with daily average volumes achieved last week (190,878 tonnes).

Mysteel calculates that rebar profit margins for some Chinese steel produc-ers have climbed above RMB1,000/t, as demand remains surprisingly strong while nationwide inventories have fallen to historical lows. As a result, many domestic long products producers have been incentivized to raise capacity utilization rates to benefit from such “juicy” profit margins. While open in-terest declined in the futures market on Tuesday, Mysteel understands that investors holding most of the longs actually increased their positions. There-fore, we believe there is more scope for more increases in rebar futures contracts; narrowing the disparity between futures and physical spot prices.

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Thursday 6th July 2017 Copyright © Mysteel.net, 2017. All Rights Reserved www.mysteel.net

China implements nationwide safety inspec-tions of metals and mining industry from July to October 2017. Chinese officials will carry out a nationwide safety checks on the domestic met-als and mining industries from July to October 2017, to test whether production, equipment and manage-ment meet legal and safety standards. Furthermore, small mines and steel producers with poor safety re-cords will be closed. For key industries which have recorded a high number of work place casualties, the Chinese government will disperse safety inspec-tion teams to carry out level-to-level management. At the same time, key personnel and safety officials in the metals and mining industry will be required to pass examinations on knowledge of production safety and management. Mysteel understands the policies will be implemented in phases with “central-ized renovation” in July, deep investigation in August and September, and field supervision in September and October.

China closes around 120Mt of substandard finished steel capacity by end of June 2017. China banned around 600 enterprises from produc-ing substandard steel products by the end of June, with a total capacity of 120Mt per annum, according to an announcement from the National Development and Reform Commission (NDRC). At present, all enterprises of substandard steel products were shut down. Liu Zhenjiang, the China Iron and Steel In-dustry Association (CISA) party secretary, said that just like the elimination of substandard steel prod-ucts, the prevention of substandard steel products was also quite important. After banning the produc-tion of substandard steel products, Mysteel under-stands that steel mills with intermediate frequency/induction furnaces have almost been completely shut down. This may lead the way for more electric arc furnace steel production in the future given the strengths in short tap-to-tap times, lower capital expenditure, lower emissions, and relatively energy efficient.

Anhui province plans to shut down four coal mines and eliminate 7.05Mt capacity in 2017. In order to resolve excess capacity in the Chinese coal industry, provincial and local coal enterprises in Anhui province have announced plans to permanently close four mines in 2017; reducing annual capacity by 7.05Mt. The four enterprises/mines included are Xinzhuangzi Mine of Huainan Mining Group, Daihe Coal Mine of Huaibei Coal

Mining Group, Liuqiaoyi Mine of Wanbei Coal & Power Group and Jinshi Mining of Huaibei Xinguang Group; with the planned reduction in annual capaci-ty estimated to be 4Mt, 1.2Mt, 1.4Mt and 0.45Mt this year respectively. At the same time, Anhui province will accelerate the release of advanced capacity of collieries and those under construction which have been examined and conform to the local govern-ment’s rules, regulations and safety standards.

China cuts 42Mt of crude steel capacity in 2017, but excessive supply persists. China re-duced crude steel capacity by around 42Mt through the first five months of 2017, as many provinces tackled the production of substandard steel on government orders. Moreover, this means that the country has now completed 84.8% of the annual capacity reduction target for 2017. In the process, Chinese officials have checked over 500 manufac-turing enterprises that produce low-quality steel; with total capacity of 1.19 billion tonnes, according to the China Iron and Steel Association. While there have been great achievements in reducing capac-ity in the coal and steel industries, a situation of structural oversupply is still prominent across many provinces. Wang Xianzheng, the president of China National Coal Association, recently said that there has been no fundamental change to excessive coal capacity in the country, with supply still very much exceeding demand. In addition, there are still some problems to be resolved, such as illegal production increases and employee resettlement. The Chinese Academy of Social Sciences Institute of Industrial Economics proposed that the country should take full advantage of market, law and financial means to solve the problem of excessive steel capacity and improve the exit mechanism of excessive capacity. Furthermore, the institute stated that preferential tax policies should be provided to underdeveloped areas where enterprises have huge overcapacity. The focus should be on setting and retraining the unemployed and improving social security.

Industry & Market News

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Global Economics: Central Banks are be-coming more hawkish. The Fed has been for some time the only hawk amongst Central Bankers. Markets have anticipated another 25bp interest rate hike in 2017 with the possibility of two more in-creases in 2018. As the world economy is continuing its synchronised upswing, the Fed hawkish rhetoric has been joined by the European Central Bank, the Bank of Canada and after a surprising reversal, by Bank of England, triggering the question whether we could see a synchronised tightening. Central Bank-ers are certainly making their rhetoric louder but we believe that they will be very prudent in walking the walk with more tolerance for inflation -which has yet to materialize- and not put the economy at risk.In the US, Fed officials have been discussing over how the central bank should react to the US econ-omy’s seemingly conflicting signals from unemploy-ment and inflation.

Joblessness dropped to 4.3% in May, a 16-year low. Ms Yellen and some of her colleagues have called for continued, if slow, tightening because they ex-pect labour market gains will eventually trigger high-er wages and overall prices. Last week however, Ms Yellen nodded to concerns among some economists that inflation expectations might be declining. ‘We don’t get a consistent story,’ she said. In a com-prehensive speech hold in Sintra, Portugal, ECB’s President Draghi said that ‘deflationary forces’ have been replaced by ‘reflationary forces’ summarizing the optimism in the euro-area. Mr Draghi appeared also convinced that the Phillips Curve will steepen at some stage but called for patience. He mentioned that external shocks -mostly driven by commodities-, wages upward resistance and a ‘labour market more contestable’ are causing delays in the transmission from demand growth to inflation. Mr Draghi also said that patience was still necessary before removing the accommodative monetary policy. Nevertheless, Germany’s 10-year bond yield surged from 0.245% to 0.45% also helped by an increase in the German June inflation to 1.5% YoY from 1.4% YoY in May.

China economy: stronger than expected. China’s manufacturing PMI increased in June to 51.7 vs 51.2 in May, beating a consensus forecast of 51, an indication that China manufacturing is taking full advantage of a stronger global economic demand. Non-manufacturing PMI also increased to 54.9 in June vs 54.5 in May, indicating a buoy-ant service and construction activity. These positive

numbers come at a time when the Chinese govern-ment is trying to keep a strong economic growth while embarking into a series of measures aiming at de-leveraging the economy. It therefore gives more room for the PBOC to push ahead with reforms. However, we believe that as the 19th National Con-gress of the Communist Party of China nears, the monetary authorities will become more prudent, to ensure that there will be sufficient financial stability at that time.

The Chinese Yuan has also posted its strongest quarterly gain in nine years, rising 1.8% vs the US dollar over the past three months. All this points towards a stronger than expected economy in the second part of the year with at worst a mild slow-down driven by moderating property prices. It is difficult to not mention the 20th anniversary of Hong Kong handover to China, which took place on July 1st 1997. In its speech Chinese President Xi Jinping said that challenges to China’s rule would not be tolerated and that the city’s leaders must find new ways to profit from Chinese economic clout, adding that they must build political consensus, devise new economic drivers and address soaring home prices. Hong Kong has Asia’s largest wealth disparity with housing prices having increased by nearly 400% over the past thirteen years while the median wages trailed with a 75% rise. In terms of economic weight, Hong Kong accounts now for only 3% of total China’s economy vs nearly 20% two decades ago, reducing China’s tolerance for any political dissent. During Mr Xi’s visit, the Hong Kong stock exchange announced that foreign investors would, from Mon-day July 3rd, gain access to China’s US$10tn debt market through a local bond connect. Mr Xi also oversaw the signing of an agreement to develop closer economic links between Hong Kong, Macau and nine cities in the Guangdong province.

Weekly Economic Highlights provided by:

Erik Sardain and Gilberto CardosoManaging PartnersVictorem Capitalwww.victoremcapital.net

The opinions, findings, and conclusions or recommendations expressed in this analysis are those of the authors and do not necessarily re-flect the views of Mysteel or Shanghai Ganglian.

Economic Highlights

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Chinese Long Steel Prices Benchmark Grade Terms Units Latest Prev. Day D/D % Prev. Week W/W % Prev. Month M/M %

Billet Tangshan Billet Q235 EXW RMB/t 3,320 3,340 -0.6% 3,300 0.6% 3,080 7.8%

Jiangsu Billet Q235 EXW RMB/t 3,510 3,510 0.0% 3,400 3.2% 3,310 6.0%

Shandong Billet Q235 EXW RMB/t 3,400 3,400 0.0% 3,300 3.0% 3,150 7.9%

Tianjin Billet Q235 DDP RMB/t 3,400 3,400 0.0% 3,320 2.4% 3,130 8.6%

Shanxi Billet Q235 DDP RMB/t 3,250 3,250 0.0% 3,150 3.2% 3,030 7.3%

Rebar Shanghai Rebar HRB400 20mm Spot RMB/t 3,660 3,660 0.0% 3,560 2.8% 3,700 -1.1%

Beijing Rebar HRB400 20mm Spot RMB/t 3,680 3,660 0.5% 3,590 2.5% 3,630 1.4%

Guangzhou Rebar HRB400 20mm Spot RMB/t 3,950 3,950 0.0% 3,930 0.5% 4,020 -1.7%

Tianjin Rebar HRB400 20mm Spot RMB/t 3,670 3,650 0.5% 3,600 1.9% 3,590 2.2%

National average Rebar HRB400 20mm Spot RMB/t 3,847 3,840 0.2% 3,777 1.9% 3,832 0.4%

Wire Rod Shanghai Wire Rod HPB300 8mm Spot RMB/t 3,750 3,750 0.0% 3,650 2.7% 3,760 -0.3%

Beijing Wire Rod HPB300 8mm Spot RMB/t 4,090 4,030 1.5% 3,980 2.8% 3,980 2.8%

Guangzhou Wire Rod HPB300 8mm Spot RMB/t 3,870 3,870 0.0% 3,850 0.5% 3,900 -0.8%

Tianjin Wire Rod HPB300 8mm Spot RMB/t 3,550 3,550 0.0% 3,470 2.3% 3,390 4.7%

National average Wire Rod HPB300 8mm Spot RMB/t 3,823 3,810 0.3% 3,748 2.0% 3,825 -0.1%

Coiled Rebar Shanghai Coiled Rebar HRB400(E) 8mm Spot RMB/t 3,710 3,710 0.0% 3,580 3.6% 3,610 2.8%

Beijing Coiled Rebar HRB400(E) 8mm Spot RMB/t 3,670 3,630 1.1% 3,550 3.4% 3,550 3.4%

Guangzhou Coiled Rebar HRB400(E) 8mm Spot RMB/t 4,120 4,120 0.0% 4,100 0.5% 4,170 -1.2%

Tianjin Coiled Rebar HRB400(E) 8mm Spot RMB/t 3,670 3,630 1.1% 3,570 2.8% 3,520 4.3%

National average Coiled Rebar HRB400(E) 8mm Spot RMB/t 3,901 3,889 0.3% 3,818 2.2% 3,906 -0.1%

H-beam Shanghai H-beam 200*100 Spot RMB/t 3,500 3,490 0.3% 3,430 2.0% 3,320 5.4%

Beijing H-beam 200*100 Spot RMB/t 3,410 3,410 0.0% 3,400 0.3% 3,240 5.2%

Guanghou H-beam 200*100 Spot RMB/t 3,680 3,680 0.0% 3,580 2.8% 3,310 11.2%

Tangshan H-beam 200*100 Spot RMB/t 3,530 3,530 0.0% 3,440 2.6% 3,310 6.6%

National average H-beam 200*100 Spot RMB/t 3,601 3,588 0.4% 3,522 2.2% 3,402 5.8%

I-shaped Steel Shanghai I-shaped Steel 25＃ Spot RMB/t 3,690 3,690 0.0% 3,630 1.7% 3,500 5.4%

Beijing I-shaped Steel 25＃ Spot RMB/t 3,410 3,410 0.0% 3,390 0.6% 3,270 4.3%

Guangzhou I-shaped Steel 25＃ Spot RMB/t 4,220 4,220 0.0% 4,130 2.2% 4,070 3.7%

Tianjin I-shaped Steel 25＃ Spot RMB/t 3,440 3,440 0.0% 3,400 1.2% 3,370 2.1%

Shijiazhuang I-shaped Steel 25＃ Spot RMB/t 3,550 3,550 0.0% 3,470 2.3% 3,350 6.0%

National average I-shaped Steel 25＃ Spot RMB/t 3,877 3,873 0.1% 3,797 2.1% 3,699 4.8%

Steel Angle Shanghai Steel Angle 50*5 Spot RMB/t 3,780 3,780 0.0% 3,690 2.4% 3,590 5.3%

Beijing Steel Angle 50*5 Spot RMB/t 3,450 3,450 0.0% 3,420 0.9% 3,300 4.5%

Guangzhou Steel Angle 50*5 Spot RMB/t 4,130 4,130 0.0% 4,040 2.2% 3,950 4.6%

Tianjin Steel Angle 50*5 Spot RMB/t 3,510 3,510 0.0% 3,470 1.2% 3,350 4.8%

Shijiazhuang Steel Angle 50*5 Spot RMB/t 3,610 3,610 0.0% 3,530 2.3% 3,370 7.1%

National average Steel Angle 50*5 Spot RMB/t 3,886 3,880 0.2% 3,815 1.9% 3,717 4.5%

Steel Channel Shanghai Steel Channel 16＃ Spot RMB/t 3,700 3,700 0.0% 3,640 1.6% 3,520 5.1%

Beijing Steel Channel 16＃ Spot RMB/t 3,570 3,570 0.0% 3,510 1.7% 3,350 6.6%

Guangzhou Steel Channel 16＃ Spot RMB/t 4,190 4,190 0.0% 4,100 2.2% 4,020 4.2%

Tianjin Steel Channel 16＃ Spot RMB/t 3,460 3,460 0.0% 3,420 1.2% 3,350 3.3%

Shijiazhuang Steel Channel 16＃ Spot RMB/t 3,610 3,610 0.0% 3,530 2.3% 3,370 7.1%

National average Steel Channel 16＃ Spot RMB/t 3,842 3,837 0.1% 3,764 2.1% 3,656 5.1%

Welded Pipe Shanghai Welded Pipe 4* 3. 75 Spot RMB/t 3,970 3,970 0.0% 3,870 2.6% 3,660 8.5%

Beijing Welded Pipe 4*3.75 Spot RMB/t 3,800 3,800 0.0% 3,730 1.9% 3,500 8.6%

Guangzhou Welded Pipe 4*3.75 Spot RMB/t 4,050 4,050 0.0% 4,000 1.3% 3,740 8.3%

Tianjin Welded Pipe 4*3.75 Spot RMB/t 3,750 3,770 -0.5% 3,710 1.1% 3,460 8.4%

National average Welded Pipe 4*3.75 Spot RMB/t 3,920 3,915 0.1% 3,825 2.5% 3,661 7.1%

Seamless Pipe Shanghai Seamless Pipe 108*4.5 Spot RMB/t 4,400 4,400 0.0% 4,300 2.3% 4,050 8.6%

Beijing Seamless Pipe 108*4.5 Spot RMB/t 4,350 4,350 0.0% 4,350 0.0% 4,100 6.1%

Guangzhou Seamless Pipe 108*4.5 Spot RMB/t 4,650 4,600 1.1% 4,600 1.1% 4,400 5.7%

Tianjin Seamless Pipe 108*4.5 Spot RMB/t 4,350 4,350 0.0% 4,350 0.0% 4,100 6.1%

National average Seamless Pipe 108*4.5 Spot RMB/t 4,543 4,536 0.2% 4,487 1.2% 4,297 5.7%

Data Updated: 05/07/2017

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Chinese Flat Steel Prices Benchmark Grade Terms Units Latest Prev. Day D/D % Prev. Week W/W % Prev. Month M/M %

HRC Shanghai HRC 4.75mm Spot RMB/t 3,590 3,560 0.8% 3,520 2.0% 3,140 14.3%

Beijing HRC 4.75mm Spot RMB/t 3,590 3,600 -0.3% 3,560 0.8% 3,170 13.2%

Guangzhou HRC 4.75mm Spot RMB/t 3,700 3,680 0.5% 3,680 0.5% 3,260 13.5%

Tianjin HRC 4.75mm Spot RMB/t 3,600 3,590 0.3% 3,560 1.1% 3,200 12.5%

National average HRC 4.75mm Spot RMB/t 3,670 3,660 0.3% 3,592 2.2% 3,311 10.8%

CRC Shanghai CRC 1.0mm Spot RMB/t 4,060 4,050 0.2% 3,940 3.0% 3,700 9.7%

Beijing CRC 1.0mm Spot RMB/t 4,040 4,000 1.0% 4,000 1.0% 3,660 10.4%

Guangzhou CRC 1.0mm Spot RMB/t 4,170 4,150 0.5% 4,030 3.5% 3,780 10.3%

Tianjin CRC 1.0mm Spot RMB/t 4,010 3,970 1.0% 3,930 2.0% 3,610 11.1%

National average CRC 1.0mm Spot RMB/t 4,150 4,120 0.7% 4,025 3.1% 3,858 7.6%

Plate Shanghai plate Common-carbon 20mm Spot RMB/t 3,480 3,470 0.3% 3,390 2.7% 3,300 5.5%

Beijing plate Common-carbon 20mm Spot RMB/t 3,520 3,520 0.0% 3,410 3.2% 3,280 7.3%

Guangzhou plate Common-carbon 20mm Spot RMB/t 3,580 3,580 0.0% 3,510 2.0% 3,370 6.2%

Tianjin plate Common-carbon 20mm Spot RMB/t 3,500 3,500 0.0% 3,380 3.6% 3,270 7.0%

National average plate Common-carbon 20mm Spot RMB/t 3,573 3,563 0.3% 3,482 2.6% 3,390 5.4%

Shipbuilding Shanghai shipbuilding plate 10mm Spot RMB/t 3,860 3,840 0.5% 3,810 1.3% 3,760 2.7%

Plate Guangzhou shipbuilding plate 10mm Spot RMB/t 3,990 3,990 0.0% 3,960 0.8% 3,930 1.5%

Wuhan shipbuilding plate 10mm Spot RMB/t 3,810 3,810 0.0% 3,780 0.8% 3,800 0.3%

National average shipbuilding plate 10mm Spot RMB/t 3,962 3,947 0.4% 3,911 1.3% 3,871 2.4%

Strip Shanghai HR strip 2.5mm*232 Spot RMB/t 3,640 3,640 0.0% 3,590 1.4% 3,310 10.0%

Guangzhou HR strip 2.5mm*232 Spot RMB/t 3,690 3,690 0.0% 3,660 0.8% 3,360 9.8%

Tianjin HR strip 2.5mm*232 Spot RMB/t 3,600 3,600 0.0% 3,480 3.4% 3,280 9.8%

Tangshan HR strip 2.5mm*232 Spot RMB/t 3,520 3,520 0.0% 3,500 0.6% 3,317 6.1%

National average HR strip 2.5mm*232 Spot RMB/t 3,627 3,619 0.2% 3,558 1.9% 3,317 9.3%

GI Shanghai GI 1.0mm Spot RMB/t 4,620 4,610 0.2% 4,560 1.3% 4,410 4.8%

Beijing GI 1.0mm Spot RMB/t 4,410 4,410 0.0% 4,320 2.1% 4,330 1.8%

Guangzhou GI 1.0mm Spot RMB/t 4,620 4,600 0.4% 4,600 0.4% 4,450 3.8%

Tianjin GI 1.0mm Spot RMB/t 4,260 4,260 0.0% 4,200 1.4% 4,210 1.2%

Boxing GI 1.0mm Spot RMB/t 4,680 4,680 0.0% 4,580 2.2% 4,410 6.1%

National average GI 1.0mm Spot RMB/t 4,473 4,466 0.2% 4,411 1.4% 4,338 3.1%

PPGI Shanghai PPGI 1.0mm Spot RMB/t 6,800 6,800 0.0% 6,500 4.6% 6,550 3.8%

Beijing PPGI 0.476mm Spot RMB/t 4,900 4,900 0.0% 4,700 4.3% 4,650 5.4%

Guangzhou PPGI 0.476mm Spot RMB/t 6,150 6,150 0.0% 6,050 1.7% 6,050 1.7%

Tianjin PPGI 0.476mm Spot RMB/t 4,900 4,900 0.0% 4,700 4.3% 4,650 5.4%

Boxing PPGI 0.476mm Spot RMB/t 4,620 4,620 0.0% 4,570 1.1% 4,570 1.1%

National average PPGI 0.476mm Spot RMB/t 5,384 5,370 0.3% 5,265 2.3% 5,243 2.7%

Silicon Steel Shanghai CR non-oriented silicon steel 0.5*600*C Spot RMB/t 5,900 5,900 0.0% 5,750 2.6% 5,700 3.5%

Guangzhou CR non-oriented silicon steel 0.5*600*C Spot RMB/t 6,000 6,000 0.0% 5,850 2.6% 5,650 6.2%

Wuhan CR non-oriented silicon steel 0.5*600*C Spot RMB/t 5,800 5,800 0.0% 5,650 2.7% 5,350 8.4%

Wuxi CR non-oriented silicon steel 0.5*600*C Spot RMB/t 5,900 5,900 0.0% 5,750 2.6% 5,700 3.5%

Stainless Wuxi stainless steel 201/NO.1 5mm Spot RMB/t 8,200 8,200 0.0% 7,900 3.8% 7,500 9.3%

Steel Wuxi stainless steel 304/NO.1 5mm Spot RMB/t 13,850 14,050 -1.4% 13,350 3.7% 13,000 6.5%

Wuxi stainless steel 201/2B 1mm Spot RMB/t 8,800 8,900 -1.1% 8,300 6.0% 8,300 6.0%

Wuxi stainless steel 304/2B 2mm Spot RMB/t 13,800 13,900 -0.7% 13,100 5.3% 12,800 7.8%

Wuxi stainless steel 316L/2B 2mm Spot RMB/t 19,150 19,150 0.0% 18,950 1.1% 18,550 3.2%

Wuxi stainless steel 430/2B 2mm Spot RMB/t 9,950 9,950 0.0% 9,900 0.5% 9,500 4.7%

Foshan stainless steel 201/NO.1 5mm Spot RMB/t 9,700 9,700 0.0% 9,400 3.2% 9,000 7.8%

Foshan stainless steel 304/NO.1 5mm Spot RMB/t 12,900 13,200 -2.3% 12,400 4.0% 11,800 9.3%

Foshan stainless steel 201/2B 1mm Spot RMB/t 8,700 8,900 -2.2% 8,400 3.6% 8,000 8.7%

Foshan stainless steel 304/2B 2mm Spot RMB/t 13,800 14,100 -2.1% 13,300 3.8% 12,900 7.0%

Foshan stainless steel 316L/2B 2mm Spot RMB/t 18,750 18,750 0.0% 18,350 2.2% 18,250 2.7%

Foshan stainless steel 430/2B 2mm Spot RMB/t 10,100 10,100 0.0% 10,100 0.0% 8,750 15.4%


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Key Indicators & Analysis

Chinese blast furnaces increased capacity utilization to 84.60% on 29th June 2017, from 83.53% on 1st June, in response to robust steel profit margins.

Nationwide rebar capacity utilization climbed to 73.3% on Friday 30th June 2017, driven higher by increasing output from northern Chinese mills.

Tangshan mill billet margins stood at RMB723/t on 5th July, compared with RMB413/t a month earlier, as firm demand and low inventories have supported prices.

Mysteel’s proxy for hot metal production costs has continued to soften in response to relatively lower coke; standing at RMB1,840/t on 30th June 2017.

Robust demand for long products, particularly from H-beam and Channels producers, has resulted in Tang-shan billet stocks falling to 160kt on 30th June 2017.

Sinter composition in Chinese blast furnace burdens increased to a 4-month high of 75.5%, as mills have recently scaled back their consumption of lump ore.

BF Capacity Utilization vs. Mill Profitability (%)

Nationwide Rebar Capacity Utilization (%)

Tangshan Billet vs. Production Cost (RMB/t)

Mysteel Hot Metal Production Costs (RMB/t)

Tangshan Billet Inventories (10,000t)

Blast Furnace Iron Ore Burden (%)

75%

80%

85%

90%

0%

20%

40%

60%

80%

100%Profitability [RHS] BF Capacity Utilization [LHS]

1,000

1,200

1,400

1,600

1,800

2,000

2,200

50%

55%

60%

65%

70%

75%

80%

0

20

40

60

80

100

120

1,000

1,500

2,000

2,500

3,000

3,500

73%

74%

75%

76%

77%

78%

10%

11%

12%

13%

14%

Pellet [LHS] Sinter [RHS]

7


Maintenance & Restrictions

Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y %

Steel Mill % 85.06 84.85 0.2% 83.21 1.9% 85.26 -0.2%

Blast Furnace % 77.76 77.35 0.5% 75.14 2.6% 79.42 -1.7%

Maintenance* m³ 113,064 114,684 -1.4% 127,064 -11.0% 111,583 1.3%

10,000t/d 32.88 33.51 -1.9% 37.85 -13.1% 30.74 7.0%

10,000t/d 45.61 45.85 -0.5% 52.14 -12.5% 51.31 -11.1%

# 78 79 -1.3% 84 -7.1% 69 13.0%

% 83.44 84.05 -0.6% 84.66 -1.2% 48.47 35.0%

*Nationwide 163 sample mills blast furnace survey; accounting for 80% of crude steel output in 2012

Hebei % 80.95 80.32 0.6% 78.10 2.9% 84.76 -3.8%

Blast Furnace m³ 36,735 37,895 -3.1% 46,805 -21.5% 34,100 7.7%

Survey* 10,000t/d 11.38 11.87 -4.1% 14.25 -20.1% 9.97 14.1%

10,000t/d 14.45 14.51 -0.4% 17.36 -16.8% 16.53 -12.6%

# 37 38 -2.6% 41 -9.8% 30 23.3%

% 80.82 80.82 0.0% 80.82 0.0% 57.53 23.3%

*Provincial 72 sample mills blast furnace survey

Blast Furnace % 11.62 11.65 0.0% 11.85 -0.2% 12.27 -0.7%

Iron Burden % 12.84 12.87 0.0% 13.02 -0.2% 11.82 1.0%

Ratio* % 75.54 75.48 0.1% 75.13 0.4% 75.91 -0.4%

RMB/t 1,840 1,848 -0.4% 1,917 -4.0% 1,292 42.4%

*Provincial 64 sample mills blast furnace survey, **excl. VAT Data Updated: 30/06/2017

Mysteel Survey

BF Utilization Rate

BF Operating Rate

BF Maintenance Volume

Molten Iron Output Reduced due to BF Maintenance

Reduced Output due to BF Maintenance and Restrictions

Number of Mills Under BF Maintenance

Profitable Steel Mills

BF Operating Rate

BF Maintenance Volume

Molten Iron Output Reduced due to BF Maintenance

Reduced Output due to BF Maintenance and Restrictions

Number of Mills Under BF Maintenance

Profitable Steel Mills

Lump Burden Ratio

Pellet Burden Ratio

Sinter Burden Ratio

Molten Iron/Hot Metal Production Cost**

BF Size (m³) Fengnan Fengrun Yutian Guye Kaiping Qianxi Qian’an Luanxian Leting Total

Tangshan 450 4 1 1 - 2 - 10 3 - 21

Blast Furnace 480 - - - - - - 2 - - 2

Maintenance* 500 - - 1 - - - - - - 1

520 - - - - - - - - - -

580 1 - - - - - 1 - - 2

600 2 - - - - - - - - 2

660 - - - - - - - - - -

680 - - - - - - - - - -

1080 - - - - - - 1 2 - 3

1280 - - - - - - - - - -

1350 - - - - - - - - - -

1580 - - - - - - - - - -

1780 - - - - - - - - 1 1

Quantity # 7 1 2 - 2 - 14 5 1 32

Volume m³ 3,580 450 950 - 900 - 7,120 3,510 1,780 18,290

*Provincial 164 sample mills blast furnace survey Data Updated: 30/06/2017

China implements nationwide safety inspections of metals and mining industry from July to October 2017

Chinese officials will carry out a nationwide safety checks on the domestic metals and mining industries from July to October 2017, to test whether production, equipment and management meet legal and safety standards. Furthermore, small mines and steel producers with poor safety records will be closed. For key industries which have recorded a high number of work place casualties, the Chinese government will disperse safety inspection teams to carry out level-to-level management. At the same time, key personnel and safety officials in the metals and mining industry will be required to pass examinations on knowledge of production safety and management. Mysteel understands the policies will be implemented in phases with “centralized renovation” in July, deep investigation in August and September, and field supervision in September and October.

8


Capacity & Production


Rebar East Operation Rate % 73.20 72.50 0.7% 73.90 -0.7% 83.10 -9.9%

Capacity Utilization Rate % 70.40 69.70 0.7% 67.90 2.5% 69.60 0.8%

Number of lines # 142.00 142.00 0.0% 142.00 0.0% 142.00 0.0%

Number of lines on stream # 104.00 103.00 1.0% 105.00 -1.0% 118.00 -11.9%

Output 10000t 151.14 149.68 1.0% 145.86 3.6% 149.34 1.2%

Capacity 10000t 214.72 214.72 0.0% 214.72 0.0% 214.72 0.0%

North Operation Rate % 95.20 95.20 0.0% 80.60 14.6% 83.90 11.3%


Number of lines # 62.00 62.00 0.0% 62.00 0.0% 62.00 0.0%

Number of lines on stream # 59.00 59.00 0.0% 50.00 18.0% 52.00 13.5%

Output 10000t 79.97 78.81 1.5% 67.78 18.0% 72.96 9.6%

Capacity 10000t 99.53 99.53 0.0% 99.53 0.0% 99.53 0.0%

South Operation Rate % 73.30 72.30 1.0% 72.30 1.0% 79.20 -5.9%

Capacity Utilization Rate % 70.80 71.40 -0.6% 70.00 0.8% 70.60 0.2%

Number of lines # 101.00 101.00 0.0% 101.00 0.0% 101.00 0.0%

Number of lines on stream # 74.00 73.00 1.4% 73.00 1.4% 80.00 -7.5%

Output 10000t 100.43 101.32 -0.9% 99.36 1.1% 100.19 0.2%

Capacity 10000t 141.92 141.92 0.0% 141.92 0.0% 141.92 0.0%

Total Operation Rate % 77.70 77.00 0.7% 74.80 2.9% 82.00 -4.3%


Number of lines # 305.00 305.00 0.0% 305.00 0.0% 305.00 0.0%


Output 10000t 331.54 329.81 0.5% 313.00 5.9% 456.17 -27.3%

Capacity 10000t 456.17 456.17 0.0% 456.17 0.0% 456.17 0.0%


Mysteel Survey

Chinese court orders Chonggang reorganisation

China’s heavily indebted Chongqing Iron & Steel received a reorganisation order from the Chongqing First Intermediate People’s Court on 3 July, according to Beijing Business Today. On 4 July Chonggang’s listed company confirmed the reorganisation decision, and also notes that it is facing being delisted after record-ing losses over 2015-2016. Chonggang was still losing money in the first quarter of 2017 according to the listed company’s report for the period. The steelmaker posted CNY 594 million ($87.51m) in net losses, based on sales income of CNY 1.655 billon, Kallanish notes. One of Chonggang’s creditors applied through the court for Chonggang to enter restructuring in April after it failed to pay back CNY 4.07 million in loans.

The creditor also claims that Chonggang’s current assets are not enough for them to pay back all debts. According to Chonggang’s 2016 annual financial report its net assets were a negative CNY 107 million. Chonggang is applying to continue normal production during the reorganisation process. The court has nominated Chongqing municipal deputy chief secretary Zhang Zhikui to lead the restructuring alongside a local law firm. Chonggang’s steel production suffered interruptions due to inadequate working capital over 2016 to the first half of 2017, and a reorganisation could further influence its steel production. In the first four months of 2017 Chonggang saw its crude steel output fall by -0.59% year-on-year at 866,400 tonnes. Over 2016 its crude steel output collapsed by -34.4% y-o-y to around 3.59 million tonnes..

9



Wire Rod East Operation Rate % 73.20 73.20 0.0% 73.20 0.0% 81.70 -8.5%

Capacity Utilization Rate % 64.50 64.30 0.2% 65.00 -0.5% 64.70 -0.2%

Number of lines # 71.00 71.00 0.0% 71.00 0.0% 71.00 0.0%


Output 10000t 64.52 64.31 0.3% 64.98 -0.7% 64.68 -0.2%

Capacity 10000t 99.96 99.96 0.0% 99.96 0.0% 99.96 0.0%

North Operation Rate % 79.20 79.20 0.0% 75.50 3.7% 69.80 9.4%


Number of lines # 53.00 53.00 0.0% 53.00 0.0% 53.00 0.0%


Output 10000t 47.09 47.31 -0.5% 43.74 7.7% 44.88 4.9%

Capacity 10000t 68.56 68.56 0.0% 68.56 0.0% 77.80 -11.9%

South Operation Rate % 71.10 71.10 0.0% 73.30 -2.2% 77.80 -6.7%


Number of lines # 45.00 45.00 0.0% 45.00 0.0% 45.00 0.0%


Output 10000t 33.36 32.80 1.7% 34.36 -2.9% 34.62 -3.6%

Capacity 10000t 55.90 55.90 0.0% 55.90 0.0% 55.90 0.0%

Total Operation Rate % 74.60 74.60 0.0% 74.00 0.6% 76.90 -2.3%


Number of lines # 169.00 169.00 0.0% 169.00 0.0% 169.00 0.0%


Output 10000t 144.97 144.42 0.4% 143.08 1.3% 144.18 0.5%

Capacity 10000t 224.42 224.42 0.0% 224.42 0.0% 224.42 0.0%

HRC East Operation Rate % 100.00 92.86 7.1% 100.00 0.0% 100.00 0.0%

Capacity Utilization Rate % 74.48 72.84 1.6% 72.96 1.5% 77.09 -2.6%

Number of lines # 14.00 14.00 0.0% 14.00 0.0% 14.00 0.0%


Output 10000t 63.56 62.16 2.3% 62.27 2.1% 65.79 -3.4%

Capacity 10000t 85.34 85.34 0.0% 85.34 0.0% 85.34 0.0%

North Operation Rate % 97.30 100.00 -2.7% 97.30 0.0% 91.89 5.4%


Number of lines # 37.00 37.00 0.0% 37.00 0.0% 37.00 0.0%

Number of lines on stream # 36.00 37.00 -2.7% 36.00 0.0% 34.00 5.9%

Output 10000t 196.65 197.95 -0.7% 192.62 2.1% 77.80 152.8%

Capacity 10000t 226.21 226.21 0.0% 226.21 0.0% 226.21 0.0%

South Operation Rate % 92.31 92.31 0.0% 76.92 15.4% 92.31 0.0%

Capacity Utilization Rate % 73.84 73.91 -0.1% 68.72 5.1% 83.02 -9.2%

Number of lines # 13.00 13.00 0.0% 13.00 0.0% 13.00 0.0%


Output 10000t 58.98 59.04 -0.1% 54.89 7.5% 77.80 -24.2%

Capacity 10000t 79.88 79.88 0.0% 79.88 0.0% 79.88 0.0%

Total Operation Rate % 96.88 96.88 0.0% 93.75 3.1% 93.75 3.1%


Number of lines # 64.00 64.00 0.0% 64.00 0.0% 64.00 0.0%


Output 10000t 319.19 319.15 0.0% 309.78 3.0% 77.80 310.3%

Capacity 10000t 391.42 391.42 0.0% 391.42 0.0% 391.42 0.0%


Mysteel Survey

Capacity & Production (cont...)

10



CRC East Operation Rate % 93.75 93.75 0.0% 93.75 0.0% 100.00 -6.3%


Number of lines # 16.00 16.00 0.0% 16.00 0.0% 16.00 0.0%


Output 10000t 14.97 14.66 2.1% 16.01 -6.5% 17.06 -12.3%

Capacity 10000t 23.45 23.45 0.0% 23.45 0.0% 23.45 0.0%

North Operation Rate % 94.74 94.74 0.0% 100.00 -5.3% 94.74 0.0%

Capacity Utilization Rate % 89.30 89.02 0.3% 92.34 -3.0% 88.61 0.7%

Number of lines # 19.00 19.00 0.0% 19.00 0.0% 19.00 0.0%

Number of lines on stream # 18.00 18.00 0.0% 19.00 -5.3% 18.00 0.0%

Output 10000t 44.10 43.96 0.3% 45.60 -3.3% 43.76 0.8%

Capacity 10000t 49.38 49.38 0.0% 49.38 0.0% 77.09 -35.9%

South Operation Rate % 75.00 75.00 0.0% 83.00 -8.0% 83.33 -8.3%

Capacity Utilization Rate % 64.65 71.27 -6.6% 72.40 -7.8% 79.34 -14.7%

Number of lines # 12.00 12.00 0.0% 12.00 0.0% 12.00 0.0%


Output 10000t 18.35 20.23 -9.3% 20.55 -10.7% 22.52 -18.5%

Capacity 10000t 28.38 28.38 0.0% 28.38 0.0% 28.38 0.0%

Total Operation Rate % 89.36 89.36 0.0% 93.62 -4.3% 93.62 -4.3%

Capacity Utilization Rate % 76.49 77.90 -1.4% 81.17 -4.7% 82.33 -5.8%

Number of lines # 47.00 47.00 0.0% 47.00 0.0% 47.00 0.0%


Output 10000t 77.42 78.85 -1.8% 82.16 -5.8% 83.34 -7.1%

Capacity 10000t 101.22 101.22 0.0% 101.22 0.0% 101.22 0.0%

Plate East Operation Rate % 81.82 77.27 4.6% 77.27 4.6% 86.36 -4.5%


Number of lines # 22.00 22.00 0.0% 22.00 0.0% 22.00 0.0%


Output 10000t 37.46 35.24 6.3% 38.56 -2.9% 42.64 -12.1%

Capacity 10000t 55.08 55.08 0.0% 55.08 0.0% 55.08 0.0%

North Operation Rate % 92.59 96.30 -3.7% 92.59 0.0% 85.19 7.4%


Number of lines # 27.00 27.00 0.0% 27.00 0.0% 27.00 0.0%

Number of lines on stream # 25.00 26.00 -3.8% 25.00 0.0% 23.00 8.7%

Output 10000t 55.24 54.09 2.1% 51.88 6.5% 77.09 -28.3%

Capacity 10000t 67.02 67.02 0.0% 67.02 0.0% 67.02 0.0%

South Operation Rate % 75.00 75.00 0.0% 75.00 0.0% 81.25 -6.3%


Number of lines # 16.00 16.00 0.0% 16.00 0.0% 16.00 0.0%


Output 10000t 23.18 23.13 0.2% 24.44 -5.2% 26.11 -11.2%

Capacity 10000t 40.96 40.96 0.0% 40.96 0.0% 40.96 0.0%

Total Operation Rate % 84.62 84.62 0.0% 83.08 1.5% 84.62 0.0%

Capacity Utilization Rate % 71.26 69.16 2.1% 70.65 0.6% 73.67 -2.4%

Number of lines # 65.00 65.00 0.0% 65.00 0.0% 65.00 0.0%


Output 10000t 115.88 112.46 3.0% 114.88 0.9% 119.80 -3.3%

Capacity 10000t 163.06 163.06 0.0% 163.06 0.0% 163.06 0.0%


Mysteel Survey

Capacity & Production (cont...)

11


Tangshan Billet Indicators Tangshan Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y %

Costs Tangshan Operational Costs RMB/t 2,397 2,337 2.6% 2,326 3.1% 1,877 27.7%

Tangshan Production Costs RMB/t 2,597 2,537 2.4% 2,526 2.8% 2,075 25.2%

Mill, Port Zhengfeng 10,000t 9.90 10.60 -6.6% 17.30 -42.8% 7.70 28.6%

& Warehouse Relian 10,000t - - 0.0% - 0.0% - 0.0%

Inventories Zheshang 10,000t - - 0.0% - 0.0% - 0.0%

Huiqi 10,000t - - 0.0% - 0.0% - 0.0%

Beifang 10,000t - - 0.0% - 0.0% - 0.0%

Bofeng 10,000t 2.00 2.00 0.0% 2.00 0.0% 2.00 0.0%

Yongchang 10,000t - - 0.0% - 0.0% - 0.0%

Zhengtai 10,000t - - 0.0% - 0.0% - 0.0%

Jingtang Port 10,000t - - 0.0% - 0.0% 0.50 0.0%

Jinghua 10,000t 0.30 0.30 0.0% 0.30 0.0% 0.30 0.0%

Zhongyuan 10,000t 0.20 0.20 0.0% 0.20 0.0% 2.60 -92.3%

ZJMI Qiqanan 10,000t 0.58 0.88 -34.1% 1.53 -62.1% 1.70 -65.9%

Haiyi Hongrun 10,000t 2.00 2.50 -20.0% 2.50 -20.0% 2.40 -16.7%

Runshun 10,000t 1.00 1.00 0.0% 1.00 0.0% 1.00 0.0%

Dongkun 10,000t - - 0.0% - 0.0% 0.20 0.0%

Total 10,000t 15.98 17.48 -8.6% 24.83 -35.6% 18.40 -13.2%

Consumption H-beam 10,000/tpd 1.39 1.76 -21.0% 1.71 -18.7% 1.57 -11.5%

by Finished Angles 10,000/tpd 1.76 1.56 12.8% 1.80 -2.2% 0.88 100.0%

Product Channels 10,000/tpd 1.47 1.67 -12.0% 1.74 -15.5% 1.60 -8.1%

Strip Steel width:145mm 10,000/tpd 1.71 1.56 9.6% 1.76 -2.8% 2.00 -14.5%

Strip Steel width: >232mm 10,000/tpd 0.12 0.13 -7.7% 0.14 -14.3% 0.14 -14.3%

Wire Rod 10,000/tpd 0.21 0.49 -57.1% 0.63 -66.7% 0.83 -74.7%

Rebar 10,000/tpd 0.91 1.19 -23.5% 2.08 -56.3% 1.46 -37.7%

Total 10,000/tpd 7.57 8.37 -9.6% 9.85 -23.1% 8.48 -10.7%

Capacity H-beam % 65.12 82.56 -17.4% 80.23 -15.1% 95.03 -29.9%

Utilization Angles % 58.64 52.16 6.5% 59.88 -1.2% 71.25 -12.6%

of Finished Channels % 65.20 74.06 -8.9% 77.20 -12.0% 88.64 -23.4%

Product Strip Steel width:145mm % 40.19 36.67 3.5% 41.32 -1.1% 47.09 -6.9%

Producers Strip Steel width: >232mm % 54.22 59.85 -5.6% 64.45 -10.2% 65.53 -11.3%

Wire Rod % 26.73 61.82 -35.1% 79.07 -52.3% 42.62 -15.9%

Rebar % 60.84 79.57 -18.7% 80.01 -19.2% 41.72 19.1%

Average % 52.99 63.81 -10.8% 68.88 -15.9% 64.55 -11.6%

Billet Daily Kaiheng 10,000/tpd 0.55 0.55 0.0% 0.55 0.0% 0.60 -8.3%

Sales Yangang 10,000/tpd - - 0.0% 0.40 0.0% 0.40 0.0%

Volumes Songting 10,000/tpd 0.80 0.90 -11.1% 0.90 -11.1% 0.50 60.0%

Xinda 10,000/tpd 1.10 1.10 0.0% 1.10 0.0% 0.70 57.1%

Rongxin 10,000/tpd 0.80 0.80 0.0% 0.80 0.0% 0.80 0.0%

Jiujiang 10,000/tpd 0.65 0.60 8.3% 0.60 8.3% 0.50 30.0%

Xinglong 10,000/tpd - - 0.0% - 0.0% - 0.0%

Jianbang 10,000/tpd - - 0.0% - 0.0% - 0.0%

Rongcheng 10,000/tpd 0.25 0.25 0.0% 0.20 25.0% - #DIV/0!

Anfeng 10,000/tpd - 0.50 0.0% 0.60 0.0% 0.10 0.0%

Jingan 10,000/tpd 0.40 0.40 0.0% 0.25 60.0% 0.05 700.0%

Antai 10,000/tpd - - 0.0% - 0.0% - 0.0%

Guoyi 10,000/tpd 0.90 0.90 0.0% 0.20 350.0% 0.20 350.0%

Hongxing 10,000/tpd 0.60 0.60 0.0% 0.80 -25.0% 0.80 -25.0%

Baigong 10,000/tpd 0.55 0.55 0.0% 0.55 0.0% 0.20 175.0%

Donghai Steel 10,000/tpd - - 0.0% 0.10 0.0% 0.20 0.0%

Donghai Special Steel 10,000/tpd - - 0.0% - 0.0% 0.20 0.0%

Chunxing 10,000/tpd 0.05 - #DIV/0! 0.20 -75.0% 0.30 -83.3%

Huaxi 10,000/tpd 0.60 0.60 0.0% 0.55 9.1% 0.50 20.0%

Donghua 10,000/tpd 0.30 - #DIV/0! - #DIV/0! - #DIV/0!

Zhaofeng 10,000/tpd - - 0.0% - 0.0% - 0.0%

Total 10,000/tpd 7.55 7.75 -2.6% 7.80 -3.2% 6.05 24.8%


12


Rebar Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y %

East China Shanghai 10,000t 16.80 17.79 -5.6% 12.39 35.6% 25.78 -34.8%

Hangzhou 10,000t 31.35 28.95 8.3% 21.95 42.8% 23.85 31.4%

Hefei 10,000t 10.25 10.48 -2.2% 12.22 -16.1% 6.73 52.3%

Nanjing 10,000t 6.45 6.39 0.9% 7.10 -9.2% 12.20 -47.1%

Fuzhou 10,000t 8.04 8.38 -4.1% 7.69 4.6% 7.00 14.9%

Jinan 10,000t 1.40 1.60 -12.5% 1.60 -12.5% 1.10 27.3%

Nanchang 10,000t 16.80 17.20 -2.3% 15.20 10.5% 16.00 5.0%

Central China Changsha 10,000t 7.30 7.00 4.3% 7.00 4.3% 8.00 -8.8%

Zhengzhou 10,000t 14.48 14.39 0.6% 14.45 0.2% 16.70 -13.3%

Wuhan 10,000t 21.20 21.50 -1.4% 25.20 -15.9% 21.80 -2.8%

South China Nanning 10,000t 8.20 8.40 -2.4% 8.90 -7.9% 10.22 -19.8%

Liuzhou 10,000t 6.80 7.20 -5.6% 6.50 4.6% 3.25 109.2%

Guangzhou 10,000t 41.00 43.21 -5.1% 51.80 -20.8% 23.90 71.5%

Southwest Chengdu 10,000t 17.00 16.50 3.0% 14.20 19.7% 15.60 9.0%

China Guiyang 10,000t 16.70 17.00 -1.8% 12.30 35.8% 14.70 13.6%

Kunming 10,000t 52.30 51.90 0.8% 55.70 -6.1% 56.90 -8.1%

Chongqing 10,000t 18.10 19.30 -6.2% 19.70 -8.1% 23.80 -23.9%

North China Beijing 10,000t 18.08 18.26 -1.0% 22.63 -20.1% 21.01 -13.9%

Tianjin 10,000t 10.40 9.70 7.2% 12.00 -13.3% 7.30 42.5%

Taiyuan 10,000t 0.25 0.30 -16.7% 0.50 -50.0% 1.70 -85.3%

Shijiazhuang 10,000t 3.20 3.00 6.7% 3.50 -8.6% 0.50 540.0%

Datong 10,000t 0.60 0.55 9.1% 0.52 15.4% 0.50 20.0%

Jincheng 10,000t 0.30 0.30 0.0% 0.20 50.0% 0.60 -50.0%

Changzhi 10,000t 0.60 0.50 20.0% 0.30 100.0% 0.90 -33.3%

Linfen 10,000t 0.30 0.30 0.0% 0.20 50.0% 0.15 100.0%

Yuncheng 10,000t 0.40 0.40 0.0% 0.30 33.3% 0.55 -27.3%

Baotou 10,000t 5.15 4.32 19.2% 2.55 102.0% 2.50 106.0%

Chifeng 10,000t 0.80 0.75 6.7% 0.75 6.7% 0.75 6.7%

Northwest Lanzhou 10,000t 8.00 8.20 -2.4% 10.00 -20.0% 7.00 14.3%

China Xi'an 10,000t 13.20 15.10 -12.6% 14.90 -11.4% 13.10 0.8%

Yinchuan 10,000t 8.00 8.20 -2.4% 7.20 11.1% 10.30 -22.3%

Northeast Harbin 10,000t 9.50 9.30 2.2% 15.50 -38.7% 8.80 8.0%

China Changchun 10,000t 4.27 3.47 23.1% 4.59 -7.0% 3.11 37.3%

Shenyang 10,000t 6.62 6.40 3.4% 4.51 46.8% 10.55 -37.3%

Dalian 10,000t 3.91 3.66 6.8% 3.11 25.7% 2.14 82.7%

Total 10,000t 387.75 389.90 -0.6% 397.16 -2.4% 378.99 2.3%


Rebar Inventories

13


Wire Rod Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y %

East China Shanghai 10,000t 2.47 3.46 -28.6% 4.67 -47.1% 4.75 -48.0%

Hangzhou 10,000t 4.99 5.34 -6.6% 6.35 -21.4% 5.06 -1.4%

Hefei 10,000t 4.08 4.00 2.0% 4.20 -2.9% 0.97 320.6%

Nanjing 10,000t 0.40 0.40 0.0% 0.39 2.6% 0.27 48.1%

Fuzhou 10,000t 1.40 1.30 7.7% 1.37 2.2% 2.20 -36.4%

Jinan 10,000t 1.30 1.40 -7.1% 1.30 0.0% 0.45 188.9%

Nanchang 10,000t 7.70 7.20 6.9% 5.50 40.0% 4.40 75.0%

Central China Changsha 10,000t 2.10 2.00 5.0% 1.99 5.5% 1.00 110.0%

Zhengzhou 10,000t 6.75 6.48 4.2% 6.30 7.1% 7.93 -14.9%

Wuhan 10,000t 0.80 0.90 -11.1% 0.90 -11.1% 0.78 2.6%

South China Nanning 10,000t 2.40 2.50 -4.0% 2.60 -7.7% 2.78 -13.7%

Liuzhou 10,000t 1.00 1.20 -16.7% 0.80 25.0% 1.61 -37.9%

Guangzhou 10,000t 27.32 28.81 -5.2% 34.10 -19.9% 24.80 10.2%

Southwest Chengdu 10,000t 6.50 7.70 -15.6% 8.60 -24.4% 2.05 217.1%

China Guiyang 10,000t 4.70 6.20 -24.2% 9.10 -48.4% 4.70 0.0%

Kunming 10,000t 12.40 12.20 1.6% 10.70 15.9% 18.80 -34.0%

Chongqing 10,000t 8.70 9.00 -3.3% 7.80 11.5% 4.30 102.3%

North China Beijing 10,000t 0.37 0.43 -14.0% 0.56 -33.9% 0.73 -49.3%

Tianjin 10,000t 2.22 2.30 -3.5% 2.00 11.0% 0.40 455.0%

Taiyuan 10,000t 0.20 0.15 33.3% 0.30 -33.3% 1.00 -80.0%

Shijiazhuang 10,000t 1.25 0.45 177.8% 0.50 150.0% 0.15 733.3%

Datong 10,000t 0.25 0.20 25.0% 0.17 47.1% 0.15 66.7%

Jincheng 10,000t 0.30 0.30 0.0% 0.20 50.0% 0.30 0.0%

Changzhi 10,000t 0.40 0.30 33.3% 0.20 100.0% 0.20 100.0%

Linfen 10,000t 0.20 0.20 0.0% 0.20 0.0% 0.10 100.0%

Yuncheng 10,000t 0.30 0.30 0.0% 0.20 50.0% 0.10 200.0%

Baotou 10,000t 1.05 0.98 7.1% 0.95 10.5% 0.80 31.3%

Chifeng 10,000t 0.15 0.15 0.0% 0.15 0.0% 0.19 -21.1%

Northwest Lanzhou 10,000t 2.50 2.80 -10.7% 3.50 -28.6% 3.50 -28.6%

China Xi'an 10,000t 2.30 2.60 -11.5% 1.90 21.1% 4.30 -46.5%

Yinchuan 10,000t 0.80 1.10 -27.3% 0.80 0.0% 1.50 -46.7%

Northeast Harbin 10,000t 1.60 1.70 -5.9% 2.00 -20.0% 1.12 42.9%

China Changchun 10,000t 1.17 1.08 8.3% 1.02 14.7% 0.85 37.6%

Shenyang 10,000t 4.26 4.11 3.6% 4.82 -11.6% 6.52 -34.7%

Dalian 10,000t 0.07 0.05 40.0% 0.06 16.7% 0.28 -75.0%

Total 10,000t 114.40 119.29 -4.1% 126.20 -9.4% 109.04 4.9%


Wire Rod Inventories

14


HRC Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y %


Fuzhou 10,000t 2.10 1.90 10.5% 2.50 -16.0% 1.20 75.0%

Hangzhou 10,000t 5.90 5.95 -0.8% 6.45 -8.5% 4.76 23.9%

Hefei 10,000t 2.03 2.28 -11.0% 2.42 -16.1% 2.09 -2.9%

Nanjing 10,000t 0.47 0.50 -6.0% 0.95 -50.5% 0.80 -41.3%

Jinan 10,000t 1.20 1.40 -14.3% 1.40 -14.3% 1.35 -11.1%

Nanchang 10,000t 0.99 0.91 8.8% 0.95 4.2% 1.40 -29.3%

Wuxi 10,000t 6.70 6.60 1.5% 7.00 -4.3% 6.50 3.1%

Changshu Port 10,000t 9.87 8.73 13.1% 6.33 55.9% 2.69 266.9%

Taicang Port 10,000t 0.43 0.40 7.5% 0.40 7.5% 0.20 115.0%

Central Changsha 10,000t 2.90 3.10 -6.5% 3.30 -12.1% 2.50 16.0%

China Zhengzhou 10,000t 1.30 1.20 8.3% 1.30 0.0% 1.10 18.2%

Wuhan 10,000t 9.90 10.02 -1.2% 10.20 -2.9% 9.80 1.0%

South China Lecong (Guangzhou) 10,000t 51.50 55.50 -7.2% 67.10 -23.2% 36.30 41.9%


China Chongqing 10,000t 9.50 9.65 -1.6% 9.85 -3.6% 4.60 106.5%

Guiyang 10,000t 1.20 1.35 -11.1% 1.65 -27.3% 0.82 46.3%

Kunming 10,000t 6.00 6.00 0.0% 6.40 -6.3% 5.40 11.1%

North China Beijing 10,000t 1.50 1.68 -10.7% 2.40 -37.5% 1.10 36.4%

Tianjin 10,000t 20.50 23.00 -10.9% 30.00 -31.7% 13.40 53.0%

Shijiazhuang 10,000t 0.35 0.37 -5.4% 0.36 -2.8% 3.90 -91.0%

Tangshan 10,000t 4.50 5.00 -10.0% 5.10 -11.8% 3.90 15.4%

Handan 10,000t 6.80 7.00 -2.9% 8.30 -18.1% 3.00 126.7%

Taiyuan 10,000t 2.20 2.40 -8.3% 3.00 -26.7% 1.50 46.7%

Baotou 10,000t 2.55 2.75 -7.3% 2.49 2.4% 1.15 121.7%


China Xi'an 10,000t 8.00 8.50 -5.9% 9.10 -12.1% 2.60 207.7%

Urumqi 10,000t 3.40 3.40 0.0% 3.50 -2.9% 2.10 61.9%

Northeast Harbin 10,000t 1.10 1.20 -8.3% 1.30 -15.4% 1.50 -26.7%

China Changchun 10,000t 1.50 1.80 -16.7% 1.60 -6.3% 1.60 -6.3%

Shenyang 10,000t 7.70 8.00 -3.8% 9.00 -14.4% 5.30 45.3%

Anshan 10,000t 11.00 11.50 -4.3% 12.00 -8.3% 9.30 18.3%

Dalian 10,000t 1.20 1.20 0.0% 1.70 -29.4% 1.60 -25.0%

Total 10,000t 236.84 248.09 -4.5% 275.00 -13.9% 188.98 25.3%


HRC Inventories

15


CRC Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y %


Fuzhou 10,000t 1.25 1.60 -21.9% 1.02 22.5% 0.50 150.0%

Hangzhou 10,000t 1.61 1.69 -4.7% 1.78 -9.6% 0.84 91.7%

Hefei 10,000t 0.25 0.28 -10.7% 0.37 -32.4% 0.72 -65.3%

Nanjing 10,000t 1.12 1.13 -0.9% 1.25 -10.4% 0.64 75.0%

Jinan 10,000t 1.90 2.10 -9.5% 2.10 -9.5% 1.10 72.7%

Nanchang 10,000t 0.70 0.74 -5.4% 0.76 -7.9% 0.80 -12.5%

Wuxi 10,000t 1.23 1.25 -1.6% 1.38 -10.9% 0.62 98.4%

Changshu Port 10,000t 0.52 0.60 -13.3% 0.75 -30.7% 1.68 -69.0%

Taicang Port 10,000t 0.30 0.30 0.0% 0.30 0.0% 0.15 100.0%

Central Changsha 10,000t 0.56 0.60 -6.7% 0.72 -22.2% 1.00 -44.0%

China Zhengzhou 10,000t 0.56 0.60 -6.7% 0.60 -6.7% 0.87 -35.6%

Wuhan 10,000t 3.00 3.10 -3.2% 3.21 -6.5% 4.00 -25.0%

South China Lecong (Guangzhou) 10,000t 40.30 40.50 -0.5% 40.80 -1.2% 44.23 -8.9%

Southwest Chengdu 10,000t 3.46 3.15 9.8% 3.20 8.1% 2.75 25.8%

China Chongqing 10,000t 10.70 10.36 3.3% 9.56 11.9% 3.90 174.4%

Kunming 10,000t 0.74 0.83 -10.8% 0.73 1.4% 0.83 -10.8%

North China Beijing 10,000t 0.25 0.26 -3.8% 0.35 -28.6% 0.24 4.2%

Tianjin 10,000t 9.60 9.90 -3.0% 10.30 -6.8% 5.50 74.5%

Shijiazhuang 10,000t 0.16 0.16 0.0% 0.11 45.5% 0.33 -51.5%

Taiyuan 10,000t 0.05 0.05 0.0% 0.03 66.7% 1.10 -95.5%

Northwest Lanzhou 10,000t 1.15 1.15 0.0% 1.10 4.5% 1.10 4.5%

China Xi'an 10,000t 2.45 2.50 -2.0% 2.70 -9.3% 2.30 6.5%

Northeast Harbin 10,000t 0.41 0.62 -33.9% 0.29 41.4% 0.48 -14.6%

China Changchun 10,000t 0.16 0.15 6.7% 0.14 14.3% 0.15 6.7%

Shenyang 10,000t 1.70 1.75 -2.9% 1.60 6.3% 1.95 -12.8%

Total 10,000t 112.30 114.47 -1.9% 114.49 -1.9% 123.73 -9.2%


CRC Inventories

16


Plate Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y %

East China Shanghai 10,000t 11.25 11.24 0.1% 11.75 -4.3% 12.41 -9.3%

Fuzhou 10,000t 0.80 0.80 0.0% 1.10 -27.3% 1.50 -46.7%

Hangzhou 10,000t 6.50 6.95 -6.5% 6.17 5.3% 3.55 83.1%

Hefei 10,000t 1.65 1.79 -7.8% 1.82 -9.3% 0.95 73.7%

Nanjing 10,000t 1.10 1.20 -8.3% 1.45 -24.1% 0.95 15.8%

Jinan 10,000t 6.30 6.60 -4.5% 6.70 -6.0% 6.85 -8.0%

Nanchang 10,000t 1.10 1.10 0.0% 1.10 0.0% 1.30 -15.4%

Wuxi 10,000t 5.22 5.12 2.0% 5.45 -4.2% 4.20 24.3%

Changshu Port 10,000t 1.60 1.03 55.3% 2.89 -44.6% 4.15 -61.4%

Central Changsha 10,000t 3.90 4.00 -2.5% 4.10 -4.9% 2.00 95.0%

China Zhengzhou 10,000t 1.70 1.90 -10.5% 1.80 -5.6% 2.20 -22.7%

Wuhan 10,000t 3.10 2.90 6.9% 2.70 14.8% 2.90 6.9%

South China Lecong (Guangzhou) 10,000t 15.00 15.30 -2.0% 16.80 -10.7% 11.80 27.1%


China Chongqing 10,000t 4.35 4.20 3.6% 4.80 -9.4% 2.05 112.2%

Guiyang 10,000t 0.40 0.36 11.1% 0.45 -11.1% 0.55 -27.3%

Kunming 10,000t 1.60 1.70 -5.9% 2.20 -27.3% 2.10 -23.8%

North China Beijing 10,000t 0.72 0.72 0.0% 0.52 38.5% 0.83 -13.3%

Tianjin 10,000t 4.30 4.20 2.4% 4.00 7.5% 2.90 48.3%

Shijiazhuang 10,000t 0.30 0.40 -25.0% 0.45 -33.3% 0.45 -33.3%

Tangshan 10,000t 3.50 3.80 -7.9% 3.60 -2.8% 4.40 -20.5%

Handan 10,000t 3.50 3.80 -7.9% 4.20 -16.7% 4.40 -20.5%

Taiyuan 10,000t 0.35 0.40 -12.5% 0.50 -30.0% 0.70 -50.0%

Baotou 10,000t 0.80 0.80 0.0% 0.72 11.1% 1.04 -23.1%


China Xi'an 10,000t 5.90 5.30 11.3% 6.00 -1.7% 1.50 293.3%

Urumqi 10,000t 2.10 2.20 -4.5% 2.30 -8.7% 1.40 50.0%

Northeast Harbin 10,000t 0.70 0.70 0.0% 0.60 16.7% 0.80 -12.5%

China Changchun 10,000t 0.02 0.05 -60.0% 0.10 -80.0% 0.10 -80.0%

Shenyang 10,000t 7.10 7.30 -2.7% 8.00 -11.3% 5.80 22.4%

Dalian 10,000t 1.10 1.10 0.0% 1.20 -8.3% 0.80 37.5%

Total 10,000t 100.86 102.36 -1.5% 109.57 -7.9% 89.20 13.1%


Plate Inventories

17


About Shanghai GanglianAbout Shanghai GanglianShanghai Ganglian is a professional bulk com-modities service provider. Founded in 2000 in Shanghai, Shanghai Ganglian is the parent company of two listed subsidiaries. It has set up over 30 branches around the world and has more than 3,000 employees. Following its growth over the past 17 years, Shanghai Gan-glian is now China’s leading bulk commodities information, consulting, and E-commerce ser-vice provider. Supported by its large database of information, Shanghai Ganglian has built an integrated E-commerce ecosystem for bulk commodities, including:

• electronic/web-based data services• upstream & downstream industry research• consulting services• E-commerce trading platform• smart warehousing system• informational logistics system • supply chain financing

Shanghai Ganglian’s services cover a wide range of commodities, including steel, iron ore, metallurgical coal, thermal coal & coke, non-ferrous metals, energy, chemical, agricultural produce, etc.

About MysteelMysteel, a professional E-commerce services company, provides a real-time news portal for the Chinese iron & steel market in both English and Mandarin. The company provides qualita-tive and quantitative information on all of the markets it covers, including:

• daily prices (domestic, import and export)• indices• production• shipments• trade• inventories• capacity utilization• analysis and commentary• research• steelmaker directory

Mysteel’s information includes, but is not limited to, various categories, such as:

• HRC/CRC• plate• colour coated/galvanized• plated sheet • rebar/wire rod• sections• pipes• strips• silicon steel• stainless steel• special steel• iron ore• metallurgical coal• thermal coal• coke• ferro-alloys• scrap• pig iron• non-ferrous• freight

About Mysteel Iron Ore Derivatives BrokerageMysteel Singapore is the first office for Mysteel outside of mainland China. Mysteel Singapore focuses on the broking of physical and deriva-tive iron ore contracts. Leaning on the vast data and contacts of Mysteel, from steel mills to Chinese funds, Mysteel Singapore aims to bring closer the link between mainland China and the rest of the world.

Futures & Options Brokerage SingaporeMyles Clement (Futures)[email protected]

Alex Williams (Options)[email protected]

Futures & Options Brokerage ShanghaiWiliam Yang (Futures)[email protected]

Coco Wang (Options)[email protected]

18


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