The steel industry has ushered in a “big year” of profit in 2021. Statistics show that as of February 7, a total of 29 Steel Listed Companies in the two cities have issued performance forecasts for 2021, of which only one company is expected to lose money. From the change of net profit (subject to the index of the maximum change range of predicted net profit, the same below), only three companies expect the net profit to decline year-on-year, while the rest expect the net profit to increase to varying degrees.
In addition, the data show that due to the overall improvement of the industry, 19 companies expect a net profit of more than 1 billion yuan last year.
“In 2021, the profit of the steel industry exceeded that of 2018 and reached a new record.” Wang Guoqing, director of Lange Iron and Steel Research Center, said in an interview with the reporter of Securities Daily that the profits of the iron and steel industry increased significantly in 2021. According to the data of the National Bureau of statistics, in 2021, the ferrous metal smelting and rolling processing industry realized an operating revenue of 9666.23 billion yuan, a year-on-year increase of 32.2%; The operating cost was 8849.81 billion yuan, a year-on-year increase of 31.0%; The total profit was 424.09 billion yuan, a year-on-year increase of 75.5%.
Specifically, among the above 29 companies, Baoshan Iron & Steel Co.Ltd(600019) is expected to have the highest total net profit. According to the company’s announcement, the net profit attributable to shareholders of Listed Companies in 2021 is expected to increase by 10.9 billion yuan to 11.3 billion yuan compared with the same period of last year, an increase of 86% to 89% year-on-year; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses will increase by 10.1 billion yuan to 10.5 billion yuan, an increase of 81% to 85% year-on-year. Based on this calculation, the net profit of Baoshan Iron & Steel Co.Ltd(600019) 2021 is expected to be about 23.58 billion yuan to 23.98 billion yuan.
Baoshan Iron & Steel Co.Ltd(600019) said that in 2021, thanks to the continuous implementation of measures to promote economic recovery after the epidemic, the global economic recovery, the compensatory growth of international market demand, and the sharp rise of steel prices and bulk commodity prices. In the first half of last year, the company deepened the multi base management and control mode of one company, comprehensively benchmarked and found differences, increased the coordination of purchase and sales system, dynamically optimized the division of labor and resource flow of production line, seized market opportunities, and increased product volume and price. In the second half of the year, the company continued to promote internal potential tapping and efficiency improvement, such as internal extreme inventory management, product structure optimization and cost reduction, so as to overcome the adverse effects of limited production and energy control and severe market fluctuations, effectively support the improvement of performance, and the total annual profit of the company reached a record high.
In fact, a number of listed iron and steel companies said in the performance forecast that the company’s net profit reached an all-time high in 2021.
Wang Guoqing told the reporter of Securities Daily, “In 2021, the profit of steel enterprises increased significantly, mainly due to the sharp rise in the average price of steel, and the increase in the profit per ton of steel led to a significant increase in the overall profit. According to the monitoring data of Lange Steel’s cloud business platform, the average value of Lange steel’s national comprehensive steel price index in 2021 was 5445 yuan, up 35.1% year-on-year; Lange Steel Research Center calculated that the average gross profit per ton of steel was 525 yuan, up from the same period of last year An increase of 101.9%. “
