Steel Association disclosed in early in the 1-5 months of this year China's steel industry profits and medium-sized steel enterprises profit 56.9% lower than last year, profits decline over the previous four months to continue to expand. Insiders said the industry as a whole will not be loss of 1-6 months, is expected to remain low-profit status since April, but in view of the current decline in steel prices and raw material costs continued high there will not be too much improved.
Steel enterprise profitability attitudes
Due to poor macro-economic situation at home and abroad, the steel industry, market demand, steel prices have dropped significantly, while the raw material and fuel prices fell to a lesser extent, the performance of iron and steel enterprises in the first half will also carry a quarter of a downward direction.
TISCO stainless steel is expected to achieve net profit of 252 million yuan -4.19 billion in the first half, down 50% -70%. TISCO stainless performance reasons for the decline rate of decline in steel prices during the reporting period is much larger than the original fuel prices decline, companies take various steps to cost reduction and efficiency, but not fully offset the adverse effects of market. In the first half of last year, TISCO stainless profit of 838 million yuan. Benxi Iron and Steel plates are expected to earnings of approximately 120 million yuan -1.8 one hundred million yuan, down 69.77% -79.85%. Hebei Iron and Steel profit of 98.8 million yuan -3.95 billion yuan, down 60% -90%.
Panzhihua Steel Vanadium Titanium rely on restructuring is forecasted to go about 3 times. The announcement said it expects to achieve profitability in the first half of 6.5 billion -7.5 billion, an increase of 272% -329%. 2011 implementation of a major reorganization of assets, the delivery of assets to December 31, 2011 and for the delivery of assets, the delivery is completed, the main business of change, transition resources listed company focused on the comprehensive utilization of mineral development and vanadium and titanium company, so the performance of the company year on year increased significantly, the company's performance in the first half of 2012 with a year earlier are not comparable.
Ore price fell by the loss of steel prices is still
Customs data show that, 1 June 2012, China imported iron ore average price of 138.73 U.S. dollars / ton, down 14.24 percent. Among them, China's iron ore imports in June to 58.31 million tons, compared with May, Central fell 8.66 percent, the average import price of 139.07 U.S. dollars / ton, compared with May, Central fell 1.48 percent.
July 12, a data show that since the high point in August last year, tons of Rizhao Port 62 percent of Indian powder iron ore price fell from $ 199 to $ 153, while iron and steel composite price index fell from 194.5 to 160.8 points. During this period, the imported ore drop in price by 23 percent, steel drop in price by 17 percent.
In recent years, imports of iron ore has been difficult to get rid of the heavy burden of Chinese steel enterprises, continued to drop as the price of imported ore, Chinese steel enterprises to obtain a respite?
The answer is disappointing. The domestic steel prices in 2012 published interim results notice, with the exception of Angang Steel Company Limited Disclosure of nearly 20 billion Pre-losing, the Shougang shares and Lingganggufen of Chung PO were also Pre-losing super 200 million yuan. In addition, Sha Steel, Wuhan Steel shares and other steel enterprises in the first half results decline over 50%.
China Steel Association data show that 1 May this year, steel production and corporate profits 56.9 percent lower than last year. Among them, 80 key large and medium-sized steel enterprises realized profits of 2.533 billion yuan, down 94.26 percent, the amount of loss of 11.749 billion yuan, the loss of 32.5%.
Steel prices rating was lowered storm constantly
The real estate industry and the macroeconomic pillar industries - iron and steel industry is closely related to the regulation of real estate recently formed impact on the steel industry. Real estate owners as steel downstream industries, growth is slowed down significantly, oversupply or will be intensified, and this will make the steel prices to remain weak.
Data show that the demand for steel in 2007-2011 average annual growth of 10.7 percent, while the Standard & Poor's 2012 Chinese demand for steel is expected to grow by 4-6%. July 9, Moody's had issued the report, the decline in China's purchasing managers' index (PMI), coupled with a slowdown in China, while in Europe reduced demand, means that the mainland Chinese demand for steel will be 2011 more than 8% The year-on-year growth rate is reduced to 2012 an average of -5%.
Steel prices did not escape the fate of the lowered credit rating, in May of this year, Moody's had its rating credit rating of the credit levels of iron and steel enterprise of China Eastern substantive downward transferred of Ba2 from Ba1. China's further economic slowdown, the Baoshan Iron and Steel (A3 stable) will also be a big impact. Since last year, the steel trade and industry has been implicated in iron and steel industry as a whole down, emerging funds strand breaks in the "accident".
National Bureau of Statistics announced today a series of economic data in the first half and second quarter GDP rose 7.6 percent, a record 13 quarters of low, whether a soft landing for the Chinese economy is still too early to say, but the slowdown in economic growth, a transition iron and steel industry as a headrest, its transformation "labor pains" are inevitable. At present, the domestic steel market is still the traditional consumption of off-season, the favorable policies of the State frequent, but the policy with a lag, the positive impact of the steel market is difficult to perceive.
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