The hottest steel enterprises with huge losses suc

2022-08-19
  • Detail

Huge loss steel enterprises successfully counter attack this year is expected to continue to be good

huge loss steel enterprises successfully counter attack this year is expected to continue to be good

China Construction machinery information

last year, the steel price rose unilaterally, bringing a turning point to the steel enterprises once mired in losses. As of February 3, of the 36 listed steel companies counted, 33 have released 2016 annual performance forecasts or express reports. Among them, 29 companies are expected to have positive net profits, accounting for 88%, and 25 of the profitable enterprises have achieved a significant year-on-year increase in net profits, and 18 have successfully turned losses into profits; Only four companies lost money

after entering January this year, the steel price rebounded slightly after continuous decline, and then showed a weak and stable trend. The comprehensive steel price index fell 1.77% month on month. Wang Jianhua, my chief steel analyst at Shanghai Steel Union, predicted that the fundamental pressure will gradually increase, forcing prices to fall. However, under the background of consistent policy expectations and gradual start-up of demand, it is expected to stabilize or even rebound in the later period

the recovery of steel prices has boosted the profits of steel enterprises

in 2016, driven by the supply side structural reform and the recovery of domestic demand, the steel price ended the unilateral decline in the past five years, increased by more than 70% in the year, and the whole industry also walked out of the quagmire of losses. Compared with more than half of the 36 listed steel enterprises in 2015, nearly 90% of them are expected to achieve profits in 2016

some steel enterprises with huge losses successfully counter attacked last year. Jiuquan Iron and steel Hongxing, the former "loss king", predicted that the net profit in 2016 would reach about 78 million yuan, while the company lost 7.364 billion yuan in the same period of 2015. WISCO, which had a net profit loss of more than 7.5 billion yuan in 2015, is also expected to turn losses into profits in 2016, and the industrial chain with a complete annual net profit has not yet formed to 406 million yuan. Angang Steel Co., Ltd. predicts that the net profit attributable to the parent company in 2016 was 1.610 billion yuan, while the loss in the same period in 2015 was 4.593 billion yuan. Maanshan Iron and Steel Co., Ltd. reversed its loss of 4.804 billion yuan from the previous year to a profit of 1.228 billion yuan last year

*st Bagang and *st Shaogang also both "turned the corner" in 2016* St Bagang expects the annual net profit to be 20million yuan, *st Shaogang expects the annual net profit to be 105million yuan

in addition, some enterprises achieved substantial profit growth on the basis of the profits of the previous year. Among them, the performance forecast released by the industry leader Baosteel Co., Ltd. shows that the net profit in 2016 is expected to increase its maximum stress by 770% over the limit, which means that its net profit may reach 8.813 billion yuan; The profit of Xingang Co., Ltd. changed from 60.56 million yuan in 2015 to 480-580 million yuan in 2016, with an increase of about 700% - 860%; Fangda special steel also expects the net profit growth in 2016 to reach 490%~540%

however, there are still four companies losing money. Among them, Valin steel, which lost nearly 3billion yuan in 2015, will still lose 800million to 1.3 billion yuan last year, mainly due to the downturn in the seamless steel pipe market, the provision for asset impairment, the depreciation of the RMB and the fact that the auto panel company is still in the process of reaching its production capacity. Chongqing Iron and steel lost nearly 6 billion yuan in 2015 and still lost about 4.375 billion yuan in advance in 2016, mainly because the company failed to achieve large-scale production and high fixed costs such as financial expenses

the pressure of market supply and demand has increased significantly

as of January 25, the price index of long timber fell by 1.78% and the price index of flat timber fell by 1.76%. The comprehensive price index of iron ore American companies launched new composite membrane regeneration technology, breaking the curse of non renewable, rising 8.28% month on month, of which the price index of imported ore rose 14.39%, and the price index of domestic ore fell 0.40%. The actual trend is in line with expectations. According to Wang Jianhua's analysis, the pressure on the steel market in February was mainly reflected in the increased pressure on supply and demand and capital

in terms of supply and demand, the production index of the steel industry rebounded to 48.6% in January, with a month on month increase of 3.7 percentage points, indicating that steel mills have significantly increased their enthusiasm for production under a high level of profitability. According to the survey of Shanghai Steel Union, although the operating rate of short process enterprises fell rapidly before the holiday, the blast furnace capacity utilization rate of 163 parent process enterprises, which account for about 85% of the total national output, reached 82.05%, with a month on month increase of 1.39 percentage points, a year-on-year increase of 2.87 percentage points, and a higher growth rate after the holiday

from the perspective of domestic demand, even in the south, it will not start until mid February or later, in North China and Northwest China, it will not start until late February or later, and the demand in the Northeast will not start until March

in terms of external demand, exports in January 2016 were 9.73 million tons, and exports in December were 7.8 million tons. It is estimated that exports in January this year decreased by about 2million tons year-on-year. Therefore, the pressure of supply and demand is gradually increasing

the social inventory of steel will rise in the 11th week after the Spring Festival, while the inventory of the first nine consecutive rises increased by 2.38 million tons, especially 828800 tons in the ninth week. It is expected that the peak of social inventory may appear around late February, which is expected to reach the level of 2015

it can be seen that the supply is much larger than expected. If it continues for a period of time, the pressure of supply and demand will continue to increase, and the steel price will be under pressure

the profit expectation of steel enterprises this year is good.

with the sharp rise in the prices of raw and fuel materials and finished products, the funds occupied by enterprises in purchasing raw and fuel materials and finished products have increased significantly. At the same time, the main factor supporting steel prices is the policy expectation of cracking down on "ground steel". The start of local regional demand in March will also enhance everyone's confidence to be long to a certain extent

under the situation of market recovery and profit recovery of the whole industry last year, the business objectives of steel enterprises are expected to be higher this year. The 2017 work conference of China Baowu iron and steel group proposed that the business goal of Wuhan Iron and steel group this year is to achieve an operating revenue of 36billion yuan and a profit of 500million yuan. Chongqing Iron and Steel Group, which had a difficult operation last year, set a goal of making a profit of 100million yuan in 2017. Nangang, which turned losses into profits last year, proposed in the transformation and development plan of the 13th five year plan that by 2020, the sales revenue will exceed 100billion yuan, the proportion of new industry revenue will exceed that of the main steel industry, and the annual profit will reach 2billion yuan

on the whole, the market has certain expectations for the continued profitability of the steel industry this year. Changjiang Securities pointed out in its latest report that the probability of sharp rise or deep fall in steel prices in 2017 is small, and the average value will be higher than that in 2016, while coke and ore on the cost side will be subject to fundamentals. Therefore, the annual price growth rate is from high to low, or followed by steel, coal and ore. the position of steel, a midstream smelting link, in the industrial chain will be improved, and the profit expectation of steel enterprises will also be relatively strengthened

Copyright © 2011 JIN SHI