Cost highs steel prices have declined, many listed steel companies have pre -reduced performance in the first half of the year

Affected by the rise in raw materials such as coke, iron ore, and the decline in steel sales prices, the performance of more steel companies in the first half of the year was significantly pre -reduced.

According to the data of Tonghua Shun, as of July 15, a total of 25 listed steel companies in A shares disclosed the semi -annual performance trailer, of which nearly 80 % of the listed steel companies pre -reduced or lost their first losses.

Steel companies have poor performance, industrial chain games are increasing, and the prices of upstream raw materials have begun to fall. In the second half of the year, the price of stable growth is declining. Whether steel companies can get out of profitability are worthy of attention.

Cost, steel price "two -way squeeze"

Many listed steel companies have pre -reduced performance

On July 15, Ansteel disclosed the semi -annual performance forecast. It is expected that the company will achieve net profit of 1.7 billion yuan in the first half of 2022, a year -on -year decrease of about 67.37%. The performance of the same period last year was about 5.2 billion yuan.

"Affected by the procurement and sales end, the profit margin of the steel mill was obviously squeezed." Ansteel said that the prices of major raw materials such as coke coal, coke, and alloy in the first half of 2022 rose sharply. , A large impact on production costs. In addition, since March of this year, due to the impact of the epidemic, the downstream demand in the steel industry has been weak, and the price of steel has continued to fall.

On the evening of July 13, Linggang disclosed the semi -annual performance forecast. It is expected that the company will achieve a net profit of 131 million yuan in the first half of 2022. Compared with the same period of the previous year, it will decrease by about 635 million yuan, a year -on -year decrease of about 82.90%.

Regarding the sharp decline in performance, Linggang said that since the beginning of this year, the steel market has shown the operation trend of "supply reduction, weak demand, rising inventory, price decline, rising costs, revenue decreases, and decline in profit". In the first half of the year, due to the sharp rise in fuel prices such as coke, the company's sales costs increased by 6.05%year -on -year. At the same time, the company's steel sales price decreased by 2.11%year -on -year, which led to a significant decline in the company's profit level year -on -year.

It is also affected by the price of upstream raw materials year -on -year and the decline in steel prices. The steel board is expected to achieve net profit of 500 million yuan to 600 million yuan in the first half of the year, a year -on -year decrease of 72.84%to 77.36%.

In terms of steel prices, in the first half of the year, the average price index of Lange Steel Comprehensive Steel was 5,178 yuan/ton, a decrease of 114 yuan/ton from the same period last year, a decrease of 2.2%.

"Under the two -way squeezing cost and price, the gross profit of steel companies has continued to decline. It has entered the negative profit range in May and June. Compared with the high gross profit in the same period last year, the gap is obvious." Wang Guoqing, director of the Lange Iron and Steel Research Center, told "Securities Securities Daily reporters, according to estimates, the average gross profit of the seven major tons of steel in the first half of the year was 149 yuan/ton, a decrease of 346 yuan/ton compared with the same period last year.

According to data from the National Bureau of Statistics, from January to May 2022, the total profit of black metal smelting and pressure -delay industry achieved a total of 80.2 billion yuan, a year -on -year decrease of 64.2%. The Lange Iron and Steel Research Center also predicts that the profit industry's profits will decline further from January to June.

"In the first half of the year, the profit of steel companies fell sharply." Wang Xuanyue, a researcher at the Shanghai Steel Lianxia Steel Division, told the reporter of the Securities Daily that there are many aspects of the factors that caused narrowing profits. The decline in economic downlink is large and the epidemic affects the weak steel consumption. Most economies in the world enter the interest rate hike cycle to drag the price of commodities. However, the main reason is that starting in the second quarter, the recovery speed of steel supply is significantly greater than demand recovery speed. Essence

The price of raw materials is lower

Can steel companies get out of the "quagmire"

However, since June, affected by factors such as the weakened market demand, the prices of upstream raw materials have continued to fall. In the futures market, on July 15, the main contract of iron ore fell more than 10%and coke fell more than 7%. In the spot market, the market price of the iron ore (Australia) on July 15 was 720 yuan/ton The price of 966 yuan/ton before the month fell 25%. Due to the serious losses of steel mills and the industrial chain profit game, the profit game of the industrial chain has increased. On July 15th, coke prices have been reduced in the third round. Since June 20, the price of coke has fallen by 700 yuan/ton.

Regarding the sharp decline in black products in the near future, Wang Qiongqiong, an analyst at the Shanghai Steel Iron ore Division, analyzed the reporter of the Securities Daily that "the black system has shown a sharp downward trend. It is necessary to wait for no signs of turning, and compared to the thread, the hot roll is still in the process of tired library. In the face of the reality of the sharp loss of steel mills, the market mentality is becoming more pessimistic, driving the entire black system to fall together. "

"At present, the iron ore iron water output has continued to decline to 2.26 million tons, and the demand has fallen. In addition, the iron ore of the previous high -definition is successively arrived in the port. The port inventory will have a trend of continuous accumulation in July." Wang Qiongqiong is expected to be iron ore. The trend of stone inventory cumulative libraries can continue to be maintained. At the same time, the impact of the off -season and the loss of steel mills, and there is still pressure in the overall price of the market outlook.

With the weakening of the price of upstream raw materials, can steel companies go out of losing money to repair profits? Wang Xuanyue analyzed that in the case of current demand recovery speed, the repair of steel profits also needed to expand the scale of production reduction. The relative weak initiative of raw materials and Cheng materials in the later period is still at the steel plant.

Regarding the market market, Wang Xuanyue believes that the supply and demand status of the steel industry is expected to improve in the second half of the year.At present, the steel enterprise has gradually begun to active or reduce production due to losses, and the state of overdooring in the early stage has been relieved. The demand for some manufacturing steel that has been affected by the epidemic has gradually recovered, and the loosening of infrastructure projects and real estate needs.The balance of supply and demand is expected to appear in the third quarter, and the price of steel and the return of profits to the return of steel prices can be expected to be expected.Similarly, from the perspective of Wang Guoqing, with the supply of steel companies in the second half of the year, the demand for iron ore and coke raw materials will be weakened, and the cost will be moved down.Relations tend to improve, and prices are expected to fluctuate and recover, driving profitability to recover.

Reporter Zhao Binbin

Profile reporter He Wangjuan

- END -