China Times (www.chinatimes. Net.. CN.) Reporter Lu Xiaoxiao reports from Beijing
In the first two trading days of the A-share market, the steel sector was also coerced. This week (March 14-18), the steel sector fell 4.97%. The steel sector was in line with the market trend, falling by 3.05% and 7.45% respectively on the 14th and 15th, and then rising continuously on the 16th-18th to regain lost ground, but it still did not reach the previous stock price level.
The 10 enterprises that the reporter of Huaxia times focused on monitoring fell across the board, and none was spared. Among them, Citic Pacific Special Steel Group Co.Ltd(000708) decreased by 9.56%, Beijing Shougang Co.Ltd(000959) decreased by 7.43%, and Shanxi Taigang Stainless Steel Co.Ltd(000825) , Hunan Valin Steel Co.Ltd(000932) , Nanjing Iron & Steel Co.Ltd(600282) decreased by more than 6%.
iron and steel enterprises’ performance improved
Shanxi Taigang Stainless Steel Co.Ltd(000825) released the annual performance express of 2021. In 2021, the company produced 127314 million tons of steel, including 4.4724 million tons of stainless steel; The annual steel sales volume was 120826 million tons, including 4.1432 million tons of stainless steel. The annual profit was 6.847 billion yuan, an increase of 295.91% over the previous year, and the operating performance reached the best level in history.
Shanxi Taigang Stainless Steel Co.Ltd(000825) said that it was mainly due to the impact of macroeconomic recovery, the demand of downstream industries of steel products increased and the price of steel increased; At the same time, the company adheres to the standard to find the difference, the production efficiency is greatly improved, the technical and economic indicators of key processes are significantly improved, the cost reduction effect is remarkable, and the business performance is significantly higher than that of the previous year.
Beijing Shougang Co.Ltd(000959) recently released the annual performance express of 2021, with a total operating revenue of 133398 billion yuan in 2021, an increase of 66.85% over the same period of last year; The operating profit was 9.865 billion yuan, an increase of 255.04% over the same period last year; The total profit was 9.806 billion yuan, an increase of 252.99% over the same period last year; The net profit attributable to shareholders of listed companies was 7.024 billion yuan, an increase of 293.19% over the same period last year Beijing Shougang Co.Ltd(000959) said that in 2021, the company continued to optimize the product structure, further expanded the market share of strategic products and key products such as electrical steel, automobile sector and tinsector, continued to improve the company’s profitability, enabled capital operation, optimized asset quality, significantly improved its core competitiveness and significantly increased its operating performance year-on-year.
Yongxing Special Materials Technology Co.Ltd(002756) released the announcement of main business data from January to February. Since 2022, Yongxing Special Materials Technology Co.Ltd(002756) operation has been stable and the performance has increased significantly year-on-year. From January to February 2022, the company achieved an operating revenue of about 1.58 billion yuan, a year-on-year increase of about 96%, and a net profit attributable to shareholders of listed companies of about 490 million yuan, a year-on-year increase of about 650%. The company’s performance growth is mainly due to the continuous rapid development of lithium battery new energy industry, which drives the rising price of lithium carbonate.
Baoshan Iron & Steel Co.Ltd(600019) in the investor survey, he said that the fourth quarter of 2021 was the trough of the industry. The situation in the first quarter of 2022 improved month on month. It is expected to continue to improve in the second quarter, but the market is difficult to reach the height of the first half of 2021. Generally speaking, the first half of 2021 is more demand driven, and the first half of this year is more cost driven.
Beijing Shougang Co.Ltd(000959) intends to acquire 49% equity of steel trading company
Beijing Shougang Co.Ltd(000959) recently announced that the company plans to purchase 49.00% equity of steel trading company held by Shougang Group by issuing shares, with a transaction price of 5.859 billion yuan; Meanwhile, Beijing Shougang Co.Ltd(000959) plans to raise matching funds from non-public offering of shares to no more than 35 specific investors, with a total amount of no more than 2.5 billion yuan. The net amount of the raised matching funds after deducting the issuance expenses will be used for the project construction of steel trading company and its subsidiaries, Jingtang company, listed companies or target companies to supplement working capital and repay debts Beijing Shougang Co.Ltd(000959) said that after the completion of this transaction, the main business scope of the listed company will not change, and the main business will be further consolidated and strengthened. Through this transaction, the target company will become a wholly-owned subsidiary of the listed company. The listed company can further integrate and standardize the original high-quality marketing resources through the steel trading company, reflect the aggregation effect of the existing brand, actively respond to the national strategic plan to build an international high-quality steel brand, improve the comprehensive competitiveness of the enterprise, and consolidate its position as one of the largest steel complex enterprises among China’s listed companies.
As for whether to consider overseas M & A, Citic Pacific Special Steel Group Co.Ltd(000708) recently said at the performance briefing that overseas M & A is an important measure for CITIC Pacific special steel to become an international and global special steel enterprise. Overseas, the company has been paying close attention to the M & A opportunities in the international market and comprehensively evaluating the feasibility of establishing special steel production bases abroad, in order to broaden the company’s marketing channels and further enhance its international influence. In addition to traditional factors, the cost of overseas business mainly considers international trade barriers and frictions.
In terms of the progress of double carbon work, Citic Pacific Special Steel Group Co.Ltd(000708) said that the company actively responded to the national work requirements of “carbon peak and carbon neutralization”, and the company has launched the first carbon emission information management system in China’s iron and steel industry; In conjunction with the metallurgical industry planning and Research Institute, CITIC Pacific special steel has begun to prepare the strategic plan for responding to carbon peak and low-carbon development, which is used to guide the future low-carbon development of the company’s subordinate enterprises. At present, the company is actively taking measures to increase the proportion of waste heat and residual energy self generation, and now the self generation supply has exceeded 50%; Improve the short process smelting capacity, the company can flexibly allocate the smelting of converter and electric furnace, adjust the proportion of scrap into the furnace and smelting process according to the market price of scrap and ore, and promote low-carbon smelting while dynamically reducing the process cost; Optimize the batching structure and use low emission sinter to reduce carbon emission.
China’s largest single iron ore will start construction this year
China’s new iron ore forces will join the market. According to China Metallurgical news, the preliminary preparations for the West Anshan Mining and beneficiation joint project of Angang mining have been completed, various approval procedures have been accelerated, and the construction will be fully started in 2022. The project is the largest underground mining project of single iron mine in China. It is designed to have an annual output of 30 million tons of mixed iron ore, 102284 million tons of iron concentrate powder and an annual output value of more than 10 billion yuan.
West Anshan Iron Mine is located 7 kilometers southwest of Qianshan District, Anshan City. It is the West extension of East Anshan Iron Mine. The two ore bodies are connected, and the estimated reserves are 1.68 billion tons. It is a single iron mine with the largest untapped resource reserves and the best endowment in China.
Cost support demand recovered, and the steel market rose slightly. According to the analysis of Lange Iron and Steel Research Center, the upgrading of epidemic control affected the supply and demand of the steel market, and the positive performance of economic data and the release of the meeting of the financial committee boosted the steel market. This week, the steel price was suppressed first and then increased. The prices of main varieties rose and fell with each other, and the overall fluctuation range was small.
According to the analysis of the above institutions, the epidemic control affects the turnover of the steel market and has a certain impact on the release of demand in the short term. On the supply side, the resumption of production of steel mills increased this week, and the blast furnace operating rate of major steel enterprises in China rebounded significantly. However, the social inventory of steel continued to go to the warehouse seasonally, and the current overall level was significantly lower than that in the same period last year.
In terms of raw materials, the price of iron ore has been adjusted to a certain extent, the price of coke has increased, the immediate profit of steel mills has shrunk, and the cost support of steel price is strong. China’s steel market will face the situation of stronger supply and recovery of demand. Steel prices will rise slightly due to shocks next week. Lange Steel’s national comprehensive steel price was 5265 yuan / ton, down 0.3% from last week, and the price of main varieties changed little. The price of iron ore has been adjusted, the price of scrap steel has risen and fallen, and the price of coke has risen and landed in the fourth round.
