China Times (www.chinatimes. Net.. CN.) Reporter Lu Xiaoxiao reports from Beijing
This week (January 17-21), the steel sector as a whole fell slightly by 0.03%. The turnover was 77.771 billion yuan, with an amplitude of 4.92% and a turnover rate of 7.46%. Among the 10 iron and steel enterprises that the reporter of Huaxia times focused on monitoring, the share prices of two fell and the other eight rose. Among them, Yongxing Special Materials Technology Co.Ltd(002756) fell by 10.18%, and Inner Mongolia Baotou Steel Union Co.Ltd(600010) fell by 6.46% in one week. The weekly increases of Shanxi Taigang Stainless Steel Co.Ltd(000825) and Beijing Shougang Co.Ltd(000959) were more than 5%.
steel enterprises have made great achievements
Recently, a number of steel enterprises have issued annual performance forecasts, Inner Mongolia Baotou Steel Union Co.Ltd(600010) it is expected that the net profit attributable to shareholders of listed companies will be 2.44 billion yuan to 3.65 billion yuan in 2021, with a year-on-year increase of 501.05% to 799.11%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was RMB 2.395 billion to RMB 3.582 billion, with a year-on-year increase of 419.50% to 676.98%.
According to the analysis of Inner Mongolia Baotou Steel Union Co.Ltd(600010) in 2021, the steel and rare earth industry operated well, and the prices of steel and rare earth increased year-on-year. The company seized the market opportunity, took high-efficiency development as the goal, actively responded to the impact of rising prices at the raw material end and the downward pressure on the steel market in the fourth quarter, continuously innovated and optimized the production organization mode, strengthened cost reduction and efficiency increase, and vigorously adjusted the product structure, Continuously improve the operation and management level and efficiency level, significantly enhance the profitability, and significantly increase the operating performance year-on-year in 2021.
Citic Pacific Special Steel Group Co.Ltd(000708) the expected revenue in 2021 is 98.574 billion yuan, a year-on-year increase of 29.43%, and the net profit attributable to shareholders of listed companies is 7.952 billion yuan, a year-on-year increase of 26.62%. Citic Pacific Special Steel Group Co.Ltd(000708) said that in the face of the impact of raw material market price fluctuations and the “dual control of energy consumption” policy, on the one hand, the company actively optimized the product structure and timely adjusted the product price, realizing the stable growth of operating revenue; On the other hand, multiple measures were taken simultaneously to save energy and reduce emissions, reduce costs and increase efficiency, effectively control the growth of costs, so as to realize the stable growth of net profit attributable to shareholders of listed companies.
The performance of Yongxing Special Materials Technology Co.Ltd(002756) is also expected to improve. In 2021, the net profit attributable to shareholders of listed companies is expected to be 872 million yuan – 924 million yuan, a year-on-year increase of 238.00% – 258.00%, and the net profit after deducting non recurring profits and losses is 753 million yuan – 789 million yuan, a year-on-year increase of 316.00% – 336.00%.
With the rapid development of new energy vehicles and energy storage industry, the demand for lithium salt from downstream customers has increased strongly, driving the continuous rise of lithium carbonate price. Yongxing Special Materials Technology Co.Ltd(002756) according to the analysis, on the basis of the steady development of special steel’s new material business, the company’s lithium battery new energy business (lithium carbonate) has a good production and sales situation and a significant increase in profitability, which is the main profit growth point of the company in the reporting period. Especially in the fourth quarter of 2021, when the price of lithium salt materials rises rapidly, the company’s cost is maintained in a more reasonable range and the profit growth is obvious.
steel market shock consolidation
The World Steel Association predicts that steel demand will increase by 2.2% in 2022. Edwin Basson, director general of the world iron and Steel Association, said recently that the recent forecast results believe that the steel demand will increase by 2.2% to 1886.4 million tons in 2022. The largest steel market comes from the construction industry, which is more flexible than most industries.
Demand continued to shrink and the steel market was shaken and consolidated. According to the analysis of Lange Iron and Steel Research Center, the economic data performance is weak, but the policy expectation is constantly strengthened, and the cost side is still supported. Under the influence of multiple factors, the steel market fluctuates, and the prices of main varieties fluctuate slightly, with little rise and fall. The national comprehensive steel price of Lange steel was 5081 yuan / ton, up 0.3% from last week, and the prices of main varieties fluctuated slightly. Iron ore prices continued to rise, scrap prices fell steadily, and coke prices remained stable. The cost of profit measurement has increased, and the profit of main varieties continues to narrow. The blast furnace operating rate of major iron and steel enterprises in China has rebounded for four consecutive weeks, and the market supply is relatively strong. According to the analysis of Lange Iron and Steel Research Center, near the Spring Festival holiday, the demand continues to weaken, the market turnover is significantly reduced, the traders’ willingness to store in winter is still insufficient, and the social inventory of steel has increased for three weeks month on month. Compared with the same period of previous years, the inventory accumulation range is smaller, the cost is higher, and the steady growth policy continues to strengthen the support for the steel price. It is expected that the market will show a shock consolidation trend next week. It is estimated that China’s steel market price will be consolidated steadily next week, the market price of long materials, sectors and pipes will fluctuate slightly, and the market price of profiles will fall slightly.
In addition, SASAC recently stated that it will steadily promote the restructuring and integration of steel and other fields. Peng Huagang, secretary general and spokesman of the state owned assets supervision and Administration Commission of the State Council, said on January 19 that in terms of strategic restructuring this year, we will focus on the implementation of national strategies such as supply side structural reform, innovation driven development and building a manufacturing power, and steadily promote the restructuring and integration of iron and steel and other fields in accordance with the principle of “one mature household and one promotion”, Timely study and establish a new central enterprise group in relevant fields.
