This week (April 11-15), the steel sector rose slightly by 0.2%, which is the third consecutive week for the sector. There was little influential news at the steel market level this week, and steel enterprises generally rose more or fell less. Among the 10 enterprises that the reporter of Huaxia times focused on monitoring, 3 fell and 7 rose. Among them, Citic Pacific Special Steel Group Co.Ltd(000708) , Inner Mongolia Baotou Steel Union Co.Ltd(600010) , Yongxing Special Materials Technology Co.Ltd(002756) decreased by 1.69%, 1.75% and 5.53% respectively Hbis Company Limited(000709) had the highest increase of 4.67%, Angang Steel Company Limited(000898) had an increase of 2.12%, and the share prices of Nanjing Iron & Steel Co.Ltd(600282) , Beijing Shougang Co.Ltd(000959) , Hunan Valin Steel Co.Ltd(000932) and Hunan Valin Steel Co.Ltd(000932) all increased by more than 1%.
iron and steel enterprises are optimistic about the future
Inner Mongolia Baotou Steel Union Co.Ltd(600010) released the annual report of 2021, which achieved an operating revenue of 86.183 billion yuan in 2021, with a year-on-year increase of 45.42%, and the net profit attributable to shareholders of listed companies was 2.866 billion yuan, with a year-on-year increase of 606.09%. In addition to the steel business, Inner Mongolia Baotou Steel Union Co.Ltd(600010) also has rare earth and fluorine chemical businesses. In 2021, all of the above industries enjoy a high reputation, and Inner Mongolia Baotou Steel Union Co.Ltd(600010) performance is amazing.
Inner Mongolia Baotou Steel Union Co.Ltd(600010) said that during the reporting period, the company played the "rare earth card" and "resource card" well, implemented the transformation and upgrading of "green, digital and intelligent", scrambled for time and speed, reduced costs and improved quality, and created the best business performance since listing.
Commendable performance also boosted the share price of Inner Mongolia Baotou Steel Union Co.Ltd(600010) and Inner Mongolia Baotou Steel Union Co.Ltd(600010) rose 0.45% on the 15th after the release of the annual report. However, as the share price of Inner Mongolia Baotou Steel Union Co.Ltd(600010) fell sharply on April 11, the overall share price of Inner Mongolia Baotou Steel Union Co.Ltd(600010) fell by 1.75% this week.
Beijing Shougang Co.Ltd(000959) released the production and operation express in March. The sales volume of electrical steel for new energy vehicles increased by about 176% year-on-year in March. All production lines of new energy automotive electrical steel project have fully entered the commissioning stage: continuous retreat 7 has entered the hot commissioning stage; The installation of rolling mill equipment has been completed and the single commissioning has been started. It is expected that the conditions for production will be met in June. At that time, the supply capacity of high-end electrical steel of Shougang will be greatly improved.
For the future market development, Beijing Shougang Co.Ltd(000959) said that under the background of stabilizing the economic tone, the steel market demand will be gradually released. Affected by the situation in Russia and Ukraine, the international commodity prices continue to strengthen, and it is expected that the short-term steel price volatility in China will be strong.
Beijing Shougang Co.Ltd(000959) shares performed well after the release of the performance forecast, rising for four days and rising by 1.02% in the final week.
For the market situation in the first quarter, Hunan Valin Steel Co.Ltd(000932) in accepting the institutional research, the company also said that the production and operation of the company remained stable and the orders were full in the first quarter of 2022. In terms of varieties and downstream, the situation that the board is strong and weak and the demand in the industrial field is better than that in the construction industry is still maintained. In terms of sectors, shipbuilding, wind power, automobiles, electrical steel, bridges, etc. continued the good demand trend in 2021, and the demand for construction machinery and heavy trucks was basically stable, but still weaker than that in the first half of last year; In terms of long materials, March entered the peak season of steel consumption, and its demand rebounded compared with the low point in the fourth quarter of 2021; Affected by the rise of oil price and other factors, the demand and order volume of seamless steel pipe improved month on month.
As for the market expectation in the second quarter, Hunan Valin Steel Co.Ltd(000932) said that the second quarter is the peak season of traditional steel consumption. In addition, the economic goal of 2022 adheres to the general tone of "keeping the word first and seeking progress while maintaining stability", and the policies such as the payment of new local government special bonds and special income, the addition and deduction of R & D expenses of scientific and technological small and medium-sized enterprises, and the retention and rebate of manufacturing value-added tax are relatively strong; The economic underpinning still needs the power of traditional infrastructure and real estate, which may support the demand for steel.
steel market shocks become stronger
The steel market is expected to strengthen in the near future. The Research Report of Lange Steel Research Center shows that the national comprehensive steel price of Lange steel is 5416 yuan / ton, down 0.3% from last week. The prices of main varieties fluctuate slightly, rising and falling.
The price of iron ore fell slightly, the price of scrap remained stable, and the price of coke increased by 200 yuan / ton. It is estimated that the cost rises and the profit of main varieties shrinks to a low point.
Wang Guoqing, director of Lange Iron and steel network research center, said in an interview with the reporter of Huaxia times that the steady growth continues to increase, and the shock of the steel market is becoming stronger. The logistics and transportation in Hebei has gradually recovered, the demand for steel has been released, and the de stocking of social inventory has accelerated this week. At the same time, the price of raw materials is at a high level, with steady growth and overweight, and the steel price is expected to continue to strengthen.
In terms of policies, recently, Anhui Province issued the "14th five year plan" for the development of materials and new materials industry in Anhui Province, which proposed to encourage the merger and reorganization of iron and steel enterprises and improve the industrial concentration; Implement the policy of equal replacement of short process steelmaking capacity; Encourage blast furnace converter long process iron and steel enterprises with scrap steel, electricity price, market and other advantages to transform and develop electric furnace short process steelmaking.
The world iron and Steel Association predicts that global steel demand will increase by 0.4% this year. The latest short-term (20222023) steel demand forecast report released by the world iron and Steel Association shows that the global steel demand will continue to grow by 0.4% in 2022, reaching 1.8402 billion tons, following an increase of 2.7% in 2021. In 2023, the global steel industry will continue to grow by 2.2%, reaching 1881.4 million tons. In the context of the conflict between Russia and Ukraine, there is a high degree of uncertainty in the current prediction results.
The steel sector has been underestimated Everbright Securities Company Limited(601788) the research report shows that the supply and demand pattern of the iron and steel industry is expected to improve, the sector valuation is at a low level, and there is more room for upward growth. Under the background of "carbon neutralization and carbon peak", the dual control of production capacity and output in the iron and steel industry will become the norm, and the industry merger and reorganization will continue to promote. We believe that the decline space of Pb in the general steel sector is limited, the rise space is large, and the safety margin is high.
