Home> Company News> Net profit increase,

Net profit increase,

July 05, 2021

What's the trend of Prepainted Galvanized Steel coils, prepainted galvalume steel coils, PPGI, PPGL steel coils in the future?


In the first half of this year, steel prices in the domestic market fluctuated in a high range as a whole, making the performance of A-share steel listed companies significantly improved in the first half of the year. Judging from the performance forecasts of listed steel companies that have been disclosed so far, the net profit of many companies has increased by more than 500%.



Steel companies' performance in the first half of the year increased significantly


Hu Qimu, chief researcher of the China Steel Economic Research Institute, said in an interview with a reporter from the Securities Daily: "Under the dual impact of the continuous recovery of the domestic economy and the sharp increase in external demand caused by the epidemic, there has been a bull market in the domestic steel market where both volume and price have risen. On the one hand, the supply and sales of the industry are booming, and crude steel output has achieved a year-on-year growth of more than 10%; on the other hand, driven by demand and supported by the cost of upstream bulk raw materials, the price of steel is also rising simultaneously with the continuous increase in iron ore prices. Steel profits are also rising sharply.

According to the "Securities Daily" reporter statistics, as of July 1, a total of 9 listed steel companies have issued semi-annual performance forecasts, and their net profits have all achieved substantial growth. Among them, Angang Steel is expected to make a profit of 4.8 billion yuan, a year-on-year increase of about 860%. Bengang Steel Plates is expected to have a net profit attributable to shareholders of 2.2 billion yuan in the first half of the year, a year-on-year increase of approximately 764%. Taigang Stainless's net profit in the first half of the year is estimated to be 4.68 billion yuan to 49.7 billion yuan, an increase of 693.18% to 742.33% year-on-year; Shougang's half-year net profit is expected to be 3.36 billion yuan, an increase of 542% year-on-year.

"Crazy Steel" will come to an end

In response to the rapid increase in steel prices, the State Council executive meeting focused on the issue of commodity prices twice in a row. The Development and Reform Commission, the Ministry of Industry and Information Technology, the State-owned Assets Supervision and Administration Commission and other departments also jointly conducted interviews and market supervision inspections. By the end of May, China's steel composite price index fell to 144.07 points, 35.49 points lower than the high point.

According to the PMI of the iron and steel industry issued by the Iron and Steel Logistics Professional Committee of China IOT, the data in June was 45.1%, a decrease of 1 percentage point from the previous month. Changes in the sub-indices show that market demand has slowed down, which has weakened the supporting role of the industry.

After a round of rise and regulation, how will steel prices behave in the market outlook?


Wu Wanying said that overall demand in the steel industry will remain strong in the second half of the year, and the growth rate may slow down. The production end will be affected by increased environmental protection requirements and production restrictions, and production capacity will be compressed to a certain extent. However, taking into account the demand stimulus, it is expected Production will still increase. It is expected that the growth rate of steel prices will slow down, but they are still at a relatively high position in history; at the same time, the high price of raw material iron ore will have a certain negative impact on the profits of steel mills.

In Hu Qimu's view, on the one hand, the economic recovery has moved from a rapid rebound period to a stable recovery period. In general, demand will stabilize. On the other hand, the central and local levels have recently taken multiple measures to combat speculation funds and maintain the bulk commodity market. Stable operation has also cooled the speculative power of the steel futures and spot markets. Furthermore, from the perspective of seasonal factors, the current steel market has entered the traditional off-season of demand. Therefore, the continuous rise of steel is not supported either from the supply and demand side or from the funding side. The "crazy steel" is expected to come to an end.

Regarding the current performance of the steel market, the China Iron and Steel Association pointed out that first, market demand has weakened and it is important to maintain market stability; second, iron ore prices fluctuate at a high level, and enterprises have increased pressure to reduce costs and increase efficiency; third, steel export tax rebates The impact of the adjustment of steel exports will be further manifested.

Specifically, from the perspective of the domestic market situation, due to seasonal and downstream industry changes, demand is weakening, and the current level of Nissan is still at a high level. The China Iron and Steel Association suggests that iron and steel companies should rationally arrange production rhythms, actively adjust product structures, and maintain the smooth operation of the market.


In addition, according to the monitoring of the Iron and Steel Association, on June 18, the CIOPI imported iron ore price was US$216.67/ton, an increase of 10.04% compared to the end of May, while the price of steel increased only by 1.96% during the same period, which was much lower than the increase in ore prices. The pressure to reduce costs and increase efficiency has further increased.

At the same time, the state has cancelled the export tax rebate for some steel products since May 1. The export volume of steel products in May fell sharply by 2.7 million tons from the previous month, a drop of 33.9%. The policy effect is beginning to show. The China Iron and Steel Association stated that the effect of the policy will be further revealed in the later period, and it will be more difficult for enterprises to export steel products.


Shandong Wofeng New Material Co., Ltd products: Prepainted galvanized steel coils, Prepainted galvalume steel coils, printech steel coils, Color coated aluminum coils, Wooden finish prepainted steel coils, etc.

Contact Us

Author:

Mr. wofeng

Phone/WhatsApp:

8613563489500

Popular Products
Company News
You may also like
Related Information
Steel exports fell 33.9% month-on-month

1. Sufficient supply of steel products. According to estimates by the China Iron and Steel Association, in May, the country produced 98.08 million tons of crude steel, a year-on-year increase of...

Has China's steel exports cooled down?

After hitting a four-year high in April, China’s steel exports fell by 34% month-on-month in May. Regarding the follow-up development, some industry experts pointed out that in view of domestic and...

China will cancel some steel export tax rebates from May 1

The Ministry of Finance said on Wednesday, April 28 that China will cancel export tax rebates for certain steel products from May 1. The Ministry of Railways stated that steel products with HS codes...

Announcement on the cancellation of export tax rebates for certain steel products

The announcement regarding the cancellation of export tax rebates for some steel products is hereby announced as follows: From May 1, 2021, the export tax rebate for some steel products will be...

Related Categories

Email to this supplier

Subject:
Email:
Message:

Your message must be betwwen 20-8000 characters

Contact Us

Author:

Mr. wofeng

Phone/WhatsApp:

8613563489500

Popular Products
Company News
  • Send Inquiry

Copyright © 2024 Shandong Wofeng New Material Co., Ltd. All rights reserved. Privacy Policy

We will contact you immediately

Fill in more information so that we can get in touch with you faster

Privacy statement: Your privacy is very important to Us. Our company promises not to disclose your personal information to any external company with out your explicit permission.

Send