Driven by the rise in steel prices, the annual report of many steel companies this year has been red. As of December 5, 2017, 11 of the listed steel companies in China have published annual report forecasts, of which 2 are slightly increased, 1 is turning losses, 1 is losing money, 1 is continuing to increase, and 6 are pre-increasing. According to the forecast data released by these 11 companies, Sangang Shuguang's estimated net profit is the highest, from 3.118 billion yuan to 3.583 billion yuan, an increase of 286%. Except for Sangang Shuguang, the estimated net profit of Shagang and Yongxing Iron and Steel Co., Ltd. is also relatively high. It is worth noting that the loss-making large-scale *ST heavy steel of the steel industry has expected the full-year net profit to turn losses.
In terms of the profits of listed steel companies, the net profit of the steel industry in the first three quarters of 2017 increased by 400.90% year-on-year, and 31 of the 34 listed companies increased year-on-year, with the third quarter rising by 394.60% year-on-year and 131.00% quarter-on-quarter. As the pillar industry of China's national economy, the steel industry is irreplaceable both in the process of industrial modernization and in the current stage of economic development. With the continuous promotion of the “de-capacity†policy, policies such as the elimination of local steel bars and the release of high-quality production capacity have been introduced one after another. The external environment of the steel industry is getting better and the industry prospects are promising.
The steel price rose strongly. "Almost one day a quotation, from the price increase of 50 yuan per ton, to the current increase of one or two hundred yuan per ton. The price has been the high point in recent years." Fuzhou, a steel trade company leader It is said that it is most appropriate to describe the current situation of the steel market by “up, up, and upâ€.
It is understood that the 2017 steel comprehensive index was 135 points at the beginning of the year, and reached 174 points in mid-December. The price of rebar has increased by 5,000 yuan/ton from 3,300 yuan/ton at the beginning of the year. In September last year, the steel industry PMI index was 53.7%, which was in the expansion range of more than 50% for five consecutive months, indicating that the steel industry continued to expand and the economic pattern remained high.
According to the National Bureau of Statistics, in the first three quarters of 2017, China's pig iron output was 546.414 million tons, up 3.2% year-on-year, with a growth rate of 3.5 percentage points year-on-year; crude steel output was 638.703 million tons, up 6.3% year-on-year; steel output was 829.863 million tons. The year-on-year increase was 1.2%.
The rise in steel prices has also caused steel companies to shift from industry-wide losses in 2015 to industry-wide profits. It is reported that the steel industry experienced a general loss in 2015, and the loss rate of the whole industry's sales profit margin exceeded 80%. In the first three quarters of 2017, the steel industry realized a profit of 241.34 billion yuan, an increase of 118.5% over the same period last year. From the gross profit per ton of steel, the average gross steel per ton of rebar has been around 800 yuan since July, far exceeding the 471 yuan in the first half of the year; the average gross steel of the hot coil steel since July 2017 is about 740 yuan, 400 yuan higher than the first half. Left and right, has been fixed to a stage high since 2007.
The profitability of steel enterprises is still rising to new highs. Relevant data show that the current profit of various varieties is generally more than 1,000 yuan, and the current orders of various steel mills are generally good, the raw material inventory of steel mills is also low, and the enthusiasm for raw materials is higher. .
The second “billion-dollar enterprise†born in Luoyuan County, Fujian Province, was originally a private steel enterprise that was completely shut down and was on the verge of bankruptcy. After being merged and reorganized, it seized market opportunities last year and always maintained the maximum output. Annual sales exceed 10 billion yuan.
The internal and external development environment is getting better. For the rise of steel prices last year, the industry believes that on the one hand, the effectiveness of the supply-side structural reforms in the steel industry has begun to appear, and the effective removal of production capacity, especially the “strip steelâ€, has returned the market competition to benign. The effect is obvious; on the other hand, environmental protection and production restrictions have affected the supply of steel, and both social inventory and corporate inventory have declined.
It is understood that last year was the year of hard work for steel production. A total of 12 provinces (autonomous regions, municipalities) and central enterprises arranged crude steel reduction plans. The government's work report aims to reduce the production capacity of steel by 50 million tons, which has been exceeded, and in 2016, 65 million tons of steel was decommissioned. In the first two years of the “Thirteenth Five-Year Planâ€, the total capacity of steel production has exceeded 115 million tons, while the overall target of steel de-capacity during the “13th Five-Year Plan†period is 100 million tons to 150 million tons, with tens of millions remaining from the upper limit target. The scale of tons.
According to the industry, compared with many years ago, the cost of labor such as labor costs and capital costs of steel companies has increased substantially. Steel companies have reduced their cost pressure by improving production efficiency. With the advancement of de-capacity, many steel companies are also improving production efficiency and rising prices, which are both a response to rising factor costs and a response to technology investment.
Steel demand in the construction industry and manufacturing industry has become one of the important factors for the continuous rise of steel prices. In the first three quarters of last year, the growth rate of real estate development investment reached 8.1%, and infrastructure investment increased by 19.8%. Especially in the transportation industry, road construction increased by 23.9% year-on-year, railway construction increased by 0.6%, and civil aviation construction increased by 16.3%.
In addition, in terms of steel trade, steel traders are only affected by the excessive rise in steel prices and the decline in inventory of steel producers. There has not been a large amount of stockpiling by steel traders in the major steel trading markets. This further exacerbates the current situation of “stock shortage†in the steel market.
Improving efficiency Although there are many reasons for the rise in steel prices, the industry has listed “de-capacity†as an important factor. Therefore, some experts pointed out that the direction of de-capacity is correct, but this time the capacity is used is the administrative means. Although the steel price rebounds rapidly, it will leave hidden dangers. Some enterprises with low efficiency are "good-looking" and volume. Large and retained, delaying the efficiency of the entire industry.
From the supply side and demand side analysis, the steel market demand is generally stable, and the steel industry is still a promising industry. From the attitude of the state, it can be seen that the de-capacity is a systematic and continuous work, and will not terminate the capacity due to the recent improvement in the profitability of steel companies. The de-capacity is not to "kill a stick", but to eliminate backward production capacity and encourage the transformation and upgrading of China's steel enterprises. Therefore, steel companies must seize the opportunity to upgrade and upgrade and upgrade their technological processes.
It is understood that the connotation of the Chinese government's supply-side reform of the steel industry is "resolving excess capacity + transformation and upgrading", including: the transformation of ideas, the transformation of models, and the innovation of paths. The first is to establish a smart manufacturing demonstration enterprise; the second is to use "Internet +" to change the production organization mode and business model; the third is the technical marketing model such as EVI; the fourth is the whole life cycle quality management system; the fifth is the brand building system; Enterprises that meet the requirements of the standard implement classified management; seven is to establish a green manufacturing demonstration enterprise.
With the gradual landing of the supply-side reform of the steel industry, the future development of the steel industry will shift from a scale-speed to a quality-effective development model. Insiders pointed out that under the new normal, economic development is no longer driven by investment, but by the improvement of enterprise efficiency, that is, supply-side reform. Therefore, steel companies, like other industries, must continue to innovate, avoiding price wars by creating effective supply corresponding to demand.
In terms of the profits of listed steel companies, the net profit of the steel industry in the first three quarters of 2017 increased by 400.90% year-on-year, and 31 of the 34 listed companies increased year-on-year, with the third quarter rising by 394.60% year-on-year and 131.00% quarter-on-quarter. As the pillar industry of China's national economy, the steel industry is irreplaceable both in the process of industrial modernization and in the current stage of economic development. With the continuous promotion of the “de-capacity†policy, policies such as the elimination of local steel bars and the release of high-quality production capacity have been introduced one after another. The external environment of the steel industry is getting better and the industry prospects are promising.
The steel price rose strongly. "Almost one day a quotation, from the price increase of 50 yuan per ton, to the current increase of one or two hundred yuan per ton. The price has been the high point in recent years." Fuzhou, a steel trade company leader It is said that it is most appropriate to describe the current situation of the steel market by “up, up, and upâ€.
It is understood that the 2017 steel comprehensive index was 135 points at the beginning of the year, and reached 174 points in mid-December. The price of rebar has increased by 5,000 yuan/ton from 3,300 yuan/ton at the beginning of the year. In September last year, the steel industry PMI index was 53.7%, which was in the expansion range of more than 50% for five consecutive months, indicating that the steel industry continued to expand and the economic pattern remained high.
According to the National Bureau of Statistics, in the first three quarters of 2017, China's pig iron output was 546.414 million tons, up 3.2% year-on-year, with a growth rate of 3.5 percentage points year-on-year; crude steel output was 638.703 million tons, up 6.3% year-on-year; steel output was 829.863 million tons. The year-on-year increase was 1.2%.
The rise in steel prices has also caused steel companies to shift from industry-wide losses in 2015 to industry-wide profits. It is reported that the steel industry experienced a general loss in 2015, and the loss rate of the whole industry's sales profit margin exceeded 80%. In the first three quarters of 2017, the steel industry realized a profit of 241.34 billion yuan, an increase of 118.5% over the same period last year. From the gross profit per ton of steel, the average gross steel per ton of rebar has been around 800 yuan since July, far exceeding the 471 yuan in the first half of the year; the average gross steel of the hot coil steel since July 2017 is about 740 yuan, 400 yuan higher than the first half. Left and right, has been fixed to a stage high since 2007.
The profitability of steel enterprises is still rising to new highs. Relevant data show that the current profit of various varieties is generally more than 1,000 yuan, and the current orders of various steel mills are generally good, the raw material inventory of steel mills is also low, and the enthusiasm for raw materials is higher. .
The second “billion-dollar enterprise†born in Luoyuan County, Fujian Province, was originally a private steel enterprise that was completely shut down and was on the verge of bankruptcy. After being merged and reorganized, it seized market opportunities last year and always maintained the maximum output. Annual sales exceed 10 billion yuan.
The internal and external development environment is getting better. For the rise of steel prices last year, the industry believes that on the one hand, the effectiveness of the supply-side structural reforms in the steel industry has begun to appear, and the effective removal of production capacity, especially the “strip steelâ€, has returned the market competition to benign. The effect is obvious; on the other hand, environmental protection and production restrictions have affected the supply of steel, and both social inventory and corporate inventory have declined.
It is understood that last year was the year of hard work for steel production. A total of 12 provinces (autonomous regions, municipalities) and central enterprises arranged crude steel reduction plans. The government's work report aims to reduce the production capacity of steel by 50 million tons, which has been exceeded, and in 2016, 65 million tons of steel was decommissioned. In the first two years of the “Thirteenth Five-Year Planâ€, the total capacity of steel production has exceeded 115 million tons, while the overall target of steel de-capacity during the “13th Five-Year Plan†period is 100 million tons to 150 million tons, with tens of millions remaining from the upper limit target. The scale of tons.
According to the industry, compared with many years ago, the cost of labor such as labor costs and capital costs of steel companies has increased substantially. Steel companies have reduced their cost pressure by improving production efficiency. With the advancement of de-capacity, many steel companies are also improving production efficiency and rising prices, which are both a response to rising factor costs and a response to technology investment.
Steel demand in the construction industry and manufacturing industry has become one of the important factors for the continuous rise of steel prices. In the first three quarters of last year, the growth rate of real estate development investment reached 8.1%, and infrastructure investment increased by 19.8%. Especially in the transportation industry, road construction increased by 23.9% year-on-year, railway construction increased by 0.6%, and civil aviation construction increased by 16.3%.
In addition, in terms of steel trade, steel traders are only affected by the excessive rise in steel prices and the decline in inventory of steel producers. There has not been a large amount of stockpiling by steel traders in the major steel trading markets. This further exacerbates the current situation of “stock shortage†in the steel market.
Improving efficiency Although there are many reasons for the rise in steel prices, the industry has listed “de-capacity†as an important factor. Therefore, some experts pointed out that the direction of de-capacity is correct, but this time the capacity is used is the administrative means. Although the steel price rebounds rapidly, it will leave hidden dangers. Some enterprises with low efficiency are "good-looking" and volume. Large and retained, delaying the efficiency of the entire industry.
From the supply side and demand side analysis, the steel market demand is generally stable, and the steel industry is still a promising industry. From the attitude of the state, it can be seen that the de-capacity is a systematic and continuous work, and will not terminate the capacity due to the recent improvement in the profitability of steel companies. The de-capacity is not to "kill a stick", but to eliminate backward production capacity and encourage the transformation and upgrading of China's steel enterprises. Therefore, steel companies must seize the opportunity to upgrade and upgrade and upgrade their technological processes.
It is understood that the connotation of the Chinese government's supply-side reform of the steel industry is "resolving excess capacity + transformation and upgrading", including: the transformation of ideas, the transformation of models, and the innovation of paths. The first is to establish a smart manufacturing demonstration enterprise; the second is to use "Internet +" to change the production organization mode and business model; the third is the technical marketing model such as EVI; the fourth is the whole life cycle quality management system; the fifth is the brand building system; Enterprises that meet the requirements of the standard implement classified management; seven is to establish a green manufacturing demonstration enterprise.
With the gradual landing of the supply-side reform of the steel industry, the future development of the steel industry will shift from a scale-speed to a quality-effective development model. Insiders pointed out that under the new normal, economic development is no longer driven by investment, but by the improvement of enterprise efficiency, that is, supply-side reform. Therefore, steel companies, like other industries, must continue to innovate, avoiding price wars by creating effective supply corresponding to demand.
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