1. Steel industry news
Russian steel giant Severstal has stopped supplying steel products to the European Union.
March 2 - Russian steel company Severstal said in a statement that it has stopped supplying steel products to Europe as a result of sanctions imposed by Alexei Mordashov, the company's main owner.
Severstal said: "As a result of the shareholder sanctions, we have stopped supplying the EU and are transferring goods to other markets around the world."
It is understood that Severstal, formerly known as Cheriebovitz Steel Co., LTD., is located in volog Oblastic Volga River upstream, north of the Reyksk reservoir, is one of the large steel companies in Russia. In 2021, Severstal's revenue grew 69% year-on-year to $11.6 billion. EBITDA (earnings before interest, tax, depreciation and amortisation) was $6bn, up 147% year on year, while free cash flow was $3.539bn. In the fourth quarter of 2021, Severstal produced 3.03 million tons of crude steel, up 5% quarter-on-quarter; Hot iron output was 2.93 million tons, up 7% quarter-on-quarter. The company's steel sales volume rose 15% quarter-on-quarter to 3.1 million tons in the fourth quarter of 2021 due to strong market demand for hot-rolled coils.
2. Overview of steel market
Today's domestic steel market has risen steadily.
Cold rolling prices continue to rise, profile prices are stable in strengthening finishing, strip prices are stable in rising, coating and plating prices rose significantly, various steel varieties of specific market changes are summarized as follows:
Hot coil:
On March 3rd, hot rolling 5.5mm domestic leading city price: Tianjin 5070 yuan/ton, Shanghai 5220 yuan/ton, Lecong 5230 yuan/ton, Wuhan 5070 yuan/ton, Chengdu 5210 yuan/ton.
Early opening, the domestic hot volume market price obviously pulled up, supported by the positive news of export orders, the early market futures of the main contracts are high open trend, which hot volume 05 contract once broke through the pressure space of 5250 above, for the market also has a strong support role.
As for the market, under the strong support of macro factors, prices around the country have been pulled up, the terminal market replenishment behavior has increased, but the transaction of high-priced resources is still weak, the main transaction is still around the current merchants take goods.
As for the later view, with the price rising all the way, the fear of high sentiment of merchants is significantly increased, and the inflation expectation in the peripheral market is greatly released, but the export data has long released a positive signal, therefore, it is expected that the domestic hot market price should continue to rise at a high level.
Cold rolling:
March 3 domestic cold rolling market price continued to increase, market transaction is tepid. National cold rolled coil market prices continue to rise, hot coil black futures continue to high concussion.
North China Tianjin market cold rolling price continues to increase 40 yuan, according to the feedback of traders, in recent days the price rises fast, stimulate some market demand, downstream enterprises short-term replenishment is also completed, yesterday the day before the transaction is good, today's transaction has been reduced.
East China Shanghai market cold rolling price also continued to rise, but the end of the goods is not strong, although the price increases with futures, the market fear of high sentiment has increased, spot transaction is in a tepid state, in general, is expected to be stable in the domestic cold rolling coil price will be mainly increased.
Plating:
March 3, domestic plating market prices rose sharply.
Domestic plating prices rose sharply today. Hot coil black futures high operation, private steel galvanized guidance up 50-100 yuan, which represents the private steel mill: megajian 5750 yuan/ton, Xinyu 5900 yuan/ton.
According to the feedback of traders, the recent price rise is relatively fast, the market has been afraid of high sentiment, the transaction is obviously not as good as a few days ago, today's small and medium-sized household shipments in North China are about 100-200 tons.
