Market

1. As of March 2, the average price of rebar 20mm HRB400E in 24 major markets across the country was 3894 yuan/ton, up 8 yuan/ton from the previous trading day. The average price of 4.75 hot-rolled coils in 24 major markets across the country was 3901 yuan/ton, an increase of 1 yuan/ton from the previous trading day. The average price of 14-20mm general medium board in 23 major markets across the country was 3823 yuan/ton, down 3 yuan/ton from the previous trading day. The average price of 1.0mm cold rolled coils in 23 major markets across the country was 4793 yuan/ton, down 6 yuan/ton from the previous trading day. Comment: Yesterday's futures staged a "roller coaster" market, with wide fluctuations throughout the day. The billet rebounded from 60 yuan to 3230 yuan/ton in the afternoon. The entire market was more tangled up and down, and there was no obvious trend. At present, the market supply and demand are relatively balanced. On the one hand, the two sessions of the National People's Congress have been held. Handan, Tangshan and other regions have successively joined the environmental protection production restriction. The market inventory has dropped to a certain extent. However, the current steel price is at a high level. The rapid increase in the early stage has made the terminal purchase cautious and the transaction has not been released. On the other hand, after Shagang raised the price, most steel mills also raised the price slightly yesterday. The market is bullish, although the release of terminal demand is slow, but the price decline space is limited, the short-term market price is expected to be more high consolidation. Yesterday's night market fell sharply, with threads and hot rolls down 2.16 per cent and 2.7 per cent respectively, and iron ore close to 4 per cent. There was no new major bad news in the market. From a position point of view, investors should take profits from the recent rally. However, this situation may have a certain impact on today's spot market trend, and it is expected that today's market may show a weak downward trend. 2, Tangshan Pufang billet rose 60 to 3230 yuan/ton, Qiananpu square billet part rose 60 to 3230 yuan/ton; 62% Platts iron ore index 92.45, up 0.90. 3. The main thread of the night plate closed 3481 down 77. Hot coil main force 3491 fell 97; Iron ore main force closed down 669.5, coke main force 1764.5 fell 45, coking coal main force 1276.5 fell 38.5. (Note: The rise and fall of all major contracts is the difference between the settlement price of the previous day) 4. The Shanghai Composite Index closed at 3230.03 points, down 0.52, and the turnover 223.044 billion; the Shenzhen Component Index closed at 10367.31 points, down 0.49, and the turnover 263.688 billion; The GEM closed at 1920.4 points, down 0.6, and the turnover 70.397 billion. The total turnover of the two cities was 486.732 billion. 5. The US dollar index rose slightly, with the US dollar index reporting 102.15 at 06:34 Beijing time on March 3. The central parity rate of RMB against the US dollar was 6.8809 yuan, down 11 basis points. 6, London metals fell collectively. Copper fell 1.47 per cent to $5927.5 a tonne. Aluminum fell 1.98 per cent to $1910.5 a tonne. Nickel fell 1.99 per cent to $10810 a tonne. Zinc fell 2.62 per cent to $2787 a tonne. 7, WTI April crude oil futures closed down $1.22, or 2.27 percent, at $52.61 a barrel.

Macro and Micro

1, the central bank: Thursday conducted 10 billion 7-day, 10 billion 14-day and 10 billion 28-day reverse repurchase operations, the winning bid rate was flat at 2.35 percent, 2.5 percent and 2.65 percent. There are 100 billion reverse repo maturities on the day. Industry insiders pointed out that the central bank's recent operations show that it intends to maintain a tight liquidity balance and be vigilant against liquidity risks. 2. Wang Guoqing, spokesman of the Chinese people's political Consultative Conference: China's economy will continue to be the main engine of the global economy in the new year; "Belt and Road Initiative" has invested more than US $18 billion; last year, there were 500 billion tax increases and decreases in business reform, but at present, 1.6 percent of the corporate tax burden is rising; this year, efforts should continue to be made to reduce taxes and fees. 3. Automobiles: In February, the heavy truck market is expected to sell 88000 vehicles of various types, setting a record high for the heavy truck market in February, with a month-on-month increase of 6% and a year-on-year increase of 152. At present, the heavy truck market has maintained a strong growth momentum for two consecutive quarters, which is extremely rare in history.

Industry

1, the Ministry of Industry and Information Technology: the Ministry of Industry and Information Technology pointed out on March 1, 2017 iron and steel to resolve excess capacity work will be "strip steel" as the top priority of production capacity withdrawal, resolutely and completely ban "strip steel" illegal production capacity in accordance with the law. The merger and reorganization of the steel industry will be further promoted. 2. Handan: It was learned from Handan Environmental Protection Bureau that from March 1 to March 15, Handan City implemented peak-shift production in heating season for a number of key industries, and the steel production capacity was limited to 50%. 3. World Steel Association: In January 2017, the steel production of the four major steel producing countries in the Middle East showed a double-digit increase year-on-year. Data show that the crude steel production of the four Middle Eastern countries monitored by the World Steel Association increased by 13.5 year-on-year in January. 2.57 million tons. 4, Baltic Dry Bulk Index: up 3.79, at 904 points, the highest level in more than five weeks.