Inner Mongolia Baotou Steel Union Co.Ltd(600010) (hereinafter referred to as Inner Mongolia Baotou Steel Union Co.Ltd(600010) , 600010. SH) had a pre loss of nearly 1.4 billion yuan at most in the fourth quarter of 2021, but the annual net profit still increased by more than five times.
According to the announcement on Inner Mongolia Baotou Steel Union Co.Ltd(600010) January 11, it is expected to realize a net profit of 2.4 billion-3.65 billion yuan in 2021, with a year-on-year increase of 501.05% – 799.11%.
In the first three quarters of 2021, Inner Mongolia Baotou Steel Union Co.Ltd(600010) achieved a net profit of 3.778 billion yuan, a year-on-year increase of 2159.81%. Based on this calculation, Inner Mongolia Baotou Steel Union Co.Ltd(600010) will lose 128-1378 million yuan in advance in the fourth quarter of 2021.
According to the official website, Inner Mongolia Baotou Steel Union Co.Ltd(600010) was established in June 1999 and is the largest listed iron and steel company in Western China.
The company has the supporting capacity of iron, steel and materials with an annual output of 17.5 million tons; It has a production capacity of 450000 tons of rare earth concentrate and 100000 tons of 85% – 95% of fluorite concentrate, providing raw materials for rare earth smelting and separation industry and fluorine chemical industry.
The company said that the expected increase in performance in 2021 was mainly due to the good operation of the steel and rare earth industry, the year-on-year rise in the prices of steel and rare earth, and the company actively responded to the impact of the rise in the prices of raw materials and the downward pressure on the steel market in the fourth quarter, resulting in a significant increase in profitability.
According to the Research Report of Zheshang Securities Co.Ltd(601878) , the steel industry as a whole ushered in a performance explosion period in 2021, but gradually weakened after the third quarter. This is mainly because the cost increased significantly after the third quarter, and the output of some iron and steel enterprises in a single quarter was affected due to the impact of film demand in downstream industries.
The production cost of the iron and steel industry includes the price of raw materials such as iron ore and coal. The research report said that the increase of coal price from the third quarter of 2021 far exceeded the decline of iron ore, resulting in an increase in the overall production cost of iron and steel enterprises.
In late July 2021, the ciopi China iron ore price index dropped rapidly from the high 771.62 points to a slight recovery in December. As of December 31, the ciopi China iron ore price index closed at 440.37 points, down 42.93% from the year’s high.
Meanwhile, coke prices began to rise rapidly in July. In mid December 2021, the prices of secondary metallurgical coke in Tangshan and injected coal in Shanxi were 4160 yuan / ton and 2375 yuan / ton respectively, up 67.33% and 105.86% respectively compared with the average price in the second quarter of 2021.
Since late August 2021, China Shipbuilding Industry Group Power Co.Ltd(600482) coal prices have also risen rapidly, and futures prices have soared from about 750 yuan / ton at the low point to 1982 yuan / ton in mid and late October, setting a record high. In the later stage, with the implementation of regulatory policies, the shortage of coal supply was alleviated and the price gradually decreased.
In 2021, the overall performance of the iron and steel industry was good, but the downward pressure on the market increased in the fourth quarter, weakening the net profit of the enterprise.
According to the data of China Iron and Steel Industry Association, the national key iron and steel enterprises realized a profit of 319.3 billion yuan in the first three quarters of 2021, a year-on-year increase of 1.23 times.
By the end of November 2021, the national key iron and steel enterprises had achieved a profit of 351.7 billion yuan, a year-on-year increase of 86.46%. Among them, the total profit of the current period in November was 9.2 billion yuan, down 64.03% month on month.
The overall operation trend of rare earth industry is good in 2021.
Rare earth is known as “industrial vitamin”, which has excellent magnetic, optical and electrical properties. It is widely used in metallurgy, military, petrochemical, glass ceramics, agriculture, new materials and other fields.
Inner Mongolia Baotou Steel Union Co.Ltd(600010) said that since 2021, with the increase of demand in downstream fields such as new energy vehicles, wind power, variable frequency air conditioning, Siasun Robot&Automation Co.Ltd(300024) , the prices of major rare earth products represented by praseodymium, neodymium, dysprosium and terbium have fluctuated upward.
According to the data of business society, by the end of 2021, the price of rare earth praseodymium oxide was 875000 yuan / ton, up 148.23% year-on-year; The price of praseodymium neodymium alloy was 1035000 yuan / ton, a year-on-year increase of 102.94%; The price of metal praseodymium was 1.14 million yuan / ton, a year-on-year increase of 98.26%.
In the first quarter of 2021, affected by the global economic recovery, the political turmoil in Myanmar and the introduction of rare earth management and conditioning (Exposure Draft), the rare earth industry was in short supply, and the prices of major rare earth varieties increased significantly.
After the second quarter, the demand of downstream magnetic material enterprises was lower than expected, and the price of rare earth raw materials fell all the way. In the third quarter, driven by the demand for downstream rare earth permanent magnet materials, the rare earth quotation continued to rise and the market was active again.
In the fourth quarter of the same year, due to the superposition of factors such as the tight supply of power coal in winter and the continuous and stable market demand for high-performance rare earth permanent magnets in the downstream, the rare earth price rose again and even reached a new high in recent ten years.
According to the financial report, by the end of the third quarter of 2021, Inner Mongolia Baotou Steel Union Co.Ltd(600010) had produced 132100 tons of rare earth concentrate, achieved a sales volume of 106400 tons, a sales revenue of 1.989 billion yuan and a gross profit of 1.534 billion yuan.
As of the closing on January 11, Inner Mongolia Baotou Steel Union Co.Ltd(600010) share price was 2.85 yuan / share, up 0.71% from the previous day; Compared with the beginning of the year, it increased by 143.59%.
(source: interface News)
