★Macro★
01★★ PBOC Open Market Operations Achieve Net Withdrawal of 43.8 Billion Yuan】
The PBOC conducted 489.2 billion yuan of 7-day reverse repo operations yesterday, with a winning rate of 1.50%, unchanged from the previous rate. As 500 billion yuan of 1-year medium-term lending facility (MLF) and 33 billion yuan of 7-day reverse repo matured yesterday, a net withdrawal of 43.8 billion yuan was achieved on the day.
02★★ 【US Fed Governor Waller: Inflation Pullback and Interest Rate Cuts Expected This Year】
US Fed Governor Waller stated that inflation pullback and interest rate cuts are expected to continue this year. The recent Consumer Price Index data was disappointing, but this may be due to seasonal adjustment issues. Tariffs are expected to have a mild and non-lasting impact on prices, and the Fed should strive to ignore this effect when formulating policies.
★Industry and Downstream★
01★★★ 【Shanghai's New Home Sales Area Up 62.66% WoW Last Week】
On February 18, the latest data released by Shanghai Centaline Property showed that last week (February 10 to February 16), the transaction area of newly built residential properties in Shanghai was approximately 55,500 m², up 62.66% WoW. According to statistics from Shanghai Lianjia, the second-hand housing transaction volume in Shanghai increased by 190% WoW in the second week after the Chinese New Year, while viewing volume rose by 142.6% WoW. Yang Yulei, Chief Analyst at Shanghai Lianjia Research Institute, stated that a strong recovery trend was already evident in the second week after the holiday, with second-hand housing viewing and transaction volumes basically returning to pre-holiday levels. Notably, transactions last Sunday increased by 28% compared to the Sunday before the holiday, and this momentum is expected to continue into the "Little Spring" season.
02★★ 【Multiple Regions Launch Real Estate Promotions to Boost "Little Spring"】
Recently, various regions have introduced diverse activities in conjunction with favorable real estate policies to promote the "Little Spring" in the property market. According to the China Index Academy, in the short term, as the Chinese New Year holiday ends and residents gradually return to work and home-buying activities, market online contract signing volumes are expected to rebound. For example, data released by the Shenzhen Real Estate Intermediary Association showed that 1,261 second-hand housing units (including self-service) were recorded in Shenzhen last week, up 53% WoW. With industry personnel gradually returning to work, the recent recording volume of second-hand housing has steadily increased, basically returning to pre-holiday levels. Some analysts believe that this year's "Little Spring" is an important window period for restoring market confidence, but only through joint efforts from policies and all market participants can the "Little Spring" truly arrive and achieve sustainable and healthy market development.
03 ★★ 【SMIC Beijing Phase II Industrial Land Transaction, Planned Total Investment Not Less Than 50 Billion Yuan】
According to a reporter from the "Sci-Tech Innovation Board Daily," the auction results for the industrial land project in Yizhuang New City YZ00-0606 Block 0001-2 were announced today. The winning bidder is Beijing Yonghongyi Technology Co., Ltd., a subsidiary of Beijing Economic-Technological Development Area, whose legal representative, Li Ruixin, is responsible for major integrated circuit project investment and construction in the area. The construction unit of the measurement results report for the YZ00-0606 Block 0001 land, as shown in the project transaction documents, is SMIC Beijing Integrated Circuit Manufacturing Co., Ltd. A source close to SMIC confirmed that this land is planned for SMIC Beijing Phase II. According to the project listing documents, the planned total investment for the project is not less than 50 billion yuan, with fixed asset investment not less than 40 billion yuan, and an annual output value of not less than 6 billion yuan upon reaching full production.
04★★ 【January Operating Rate of Reach Stackers in Western China Ranks First Nationwide】
According to the latest data from the CCTV Excavator Index, in January, the overall economic development trend in western China showed positive momentum, with outstanding performance in logistics and foreign trade. The cumulative cargo transported by the Western Land-Sea New Corridor rail-sea intermodal trains reached 104,000 TEUs, up 30.9% YoY, achieving a strong start to the new year. In January, the operating rate of reach stackers in western China was 45.71%, and the operating rate of front loaders was 44.84%, both ranking first nationwide. The workload of road rollers in Ningxia increased by 78.08% YoY, ranking first nationwide, while the workload of pump trucks in Tibet increased by 40.00% YoY, also ranking first nationwide.
★Other Hot Topics★
⭕【Lingyuan Steel's New 2,290 m³ Blast Furnace Project Approved for Construction】On August 29 and September 15, 2023, Lingyuan Iron & Steel Co., Ltd. (hereinafter referred to as the "Company" or "Lingyuan Steel") held the 22nd meeting of the 8th Board of Directors and the 3rd Extraordinary General Meeting of Shareholders in 2023, respectively, to review and approve the "Proposal on the Equipment Upgrade and Construction Project for Blast Furnaces No. 1-4." On November 24, 2023, considering the current market situation and incorporating opinions from shareholders and industry experts, the Company revised the project plan and held the 3rd meeting of the 9th Board of Directors to review and approve the "Proposal on the Revision of the Equipment Upgrade and Construction Project Plan for Blast Furnaces No. 1-4." For details, please refer to the announcements titled "Lingyuan Iron & Steel Co., Ltd. Announcement on Launching Fixed Asset Investment Projects" (Interim 2023-052) and "Lingyuan Iron & Steel Co., Ltd. Announcement on Revising and Launching Fixed Asset Investment Projects" (Interim 2023-073), published on August 31 and November 25, 2023, respectively, in the "China Securities Journal," "Securities Times," and on the Shanghai Stock Exchange website.
⭕【Two Steel Product Carbon Footprint Group Standards Co-Authored by Panzhihua Steel Released】
Recently, two steel product carbon footprint group standards co-authored by the Panzhihua Steel Research Institute, namely "Greenhouse Gas Product Carbon Footprint Quantification Methods and Requirements for Blast Furnace-Converter Long Process Steel Products" and "Greenhouse Gas Product Carbon Footprint Quantification Methods and Requirements for Electric Furnace Short Process Steel Products," were successfully released and implemented. These standards have become the first batch of industrial product carbon footprint accounting rules group standards jointly determined by the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the National Development and Reform Commission (NDRC), and the State Administration for Market Regulation. To implement the major decisions on "dual carbon" made by the CPC Central Committee and the State Council, accelerate the improvement of industrial product carbon footprint management, establish and improve the carbon footprint management system, and promote green and low-carbon industrial transformation, the Panzhihua Steel Research Institute actively participated in the compilation of steel product carbon footprint group standards. This effort aims to help enterprises explore carbon reduction potential, optimize supply chain management, and enhance the low-carbon competitiveness of products, contributing to the construction of a carbon footprint system for steel products. The implementation of the long and short process steel product carbon footprint group standards marks an important step in the green development of the steel industry, providing standard support for the steel industry's inclusion in the national carbon market and laying a solid foundation for cross-industry and cross-field collaboration in exploring low-carbon development models.
⭕【Bensteel Beiying Successfully Rolls Narrow-Width Extreme SPA-H Weathering Steel for the First Time】
Recently, the 1,780 production line of Beiying Rolling Mill successfully rolled 1.9mm×948mm narrow-width extreme SPA-H weathering steel for the first time. The product's surface quality, mechanical properties, and other indicators all met standard requirements. This successful rolling expands the specifications of Bensteel Group's high-strength product series, meets high-end market demands, and further enhances the market competitiveness of Bensteel Group's products. SPA-H weathering steel is a high-performance, multipurpose steel, also known as atmospheric corrosion-resistant steel. It is mainly used in steel structures such as railways, vehicles, bridges, towers, PV, and highways, as well as in manufacturing containers, oil derricks, port buildings, offshore platforms, and chemical and petroleum equipment containing hydrogen sulfide corrosive media. Due to its high strength and hardness, this type of product has advantages such as corrosion resistance and energy saving, but producing extreme specifications is highly challenging. To ensure the success of this product's rolling, Beiying Rolling Mill carried out a series of trial production efforts, optimized secondary model system parameters to improve strip size accuracy, tested the opening degree of production line equipment to ensure that devices such as guides and guards met the requirements for extreme rolling, and conducted in-depth analysis of various performance indicators to determine key parameters such as rolling process, temperature, and speed, ensuring product quality and process rationality. Additionally, comprehensive inspections of mechanical components such as rolls, bearings, and transmission devices were conducted, and the electrical and hydraulic systems of the rolling mill were debugged to achieve precise control of equipment functions. Moving forward, the mill plans to continue increasing investment in technological R&D, optimizing production processes and equipment performance, vigorously developing new products, improving product quality and production efficiency, and enhancing the company's core competitiveness.
