23 Housing prices listed release reported: total net profit rose by almost half
Data show that in January to July this year, the country has a total production capacity of 21 million tons of China Hot Dipped Galvanized Steel Sheet
exit to complete 47% of the amount of the annual task. Some analysts believe that the current market conditions, the continued rise in steel prices, steel mills profit margins in the face of interest, some mills operating rates rise. Although environmental inspectors in some areas capacity have some impact, but in a single month, the June 2016 China's crude steel output was 69.469 million tons, an increase of 1.7% in July, crude steel output was 66.807 million tons, an increase of 1.5% It can be said that in June and July, the traditional off-season, non-crude steel production of down, or with which steel prices, increasing profit margins are closely associated.
The above data is already reflected in the first half of this year, China's steel industry profitability of listed companies from the side. As of August 27, according to "Securities Daily" reporters through institutional statistics, China's 36 listed steel companies have been 23 mid-year report released this year, which is the sum of net profit of 23 companies in the first half of this year was 3.151 billion yuan, while last year 23 companies net profit 2.127 billion yuan, an increase of 48.14%.
Three steel Min light behind steel prices profitability king
The first half of this year, the steel industry has greatly improved the company's profit, analysts said, the direct cause of the steel industry in the second quarter growth is the rising steel prices, iron ore prices rose and the cost side is limited, so that gross profit per ton of space to grow. At the same time, various steel prices since 2013 to improve the production process, the implementation of sophisticated management, cost, cost is compressed by the implementation of the cost reduction and efficiency measures to achieve gross margin and performance improvement.
The company's performance from the point of view of the most obvious point is that the company reduce losses. Published in the newspaper 23 companies, only ST Shanghai Branch a loss, and this year 23 companies have eight losses.
It is worth noting that the published mid-year report of 23 listed steel prices in the first half net profit of over 12 billion alone, the 23 companies in the last year net profit of only 7 million, but last year this 23 companies have been net loss of 6 billion. In addition, a loss of 269 million yuan last year, three steel Min light, behind in the first year to 360 million yuan net profit of steel prices in the mid-ranking.
According to the three steel Min light semi-annual report, the first half of this year the company achieved operating income of 6.141 billion yuan, representing a year earlier, down 6.54%; attributable to shareholders of listed companies net profit of 360 million yuan, representing an increase of 233.88 percent over the same period last year. Notice shows that the first half of three steel Min light 2.9999 million tons of steel sales (including sales of plate 601,400 tons), representing an increase of 6.77% over the same period last year; the average gross margin of steel products grew 12.88 percent from a year earlier.
The first half of 2016 in the country under strict regulation policy, supply-side reform steadily, iron and steel production capacity to effect progressive rendering, iron and steel production capacity expansion has been checked. Meanwhile, with the national policy to promote healthy economic development be implemented and infrastructure projects operating rate improved significantly, significantly speed up the construction schedule, effectively promoted the recovery of the steel market, effectively ease the contradiction between supply and demand imbalance of steel. National inventories of steel this year, the lowest value in recent years, the initial formation of the weak steel market equilibrium slightly larger than the demand.
Although, Wuhan Iron and Steel, Baoshan Iron and Steel, Chongqing Iron and Steel, Maanshan Iron and Steel shares of several companies yet to be announced this year's mid-year report, but Sha Steel, Baotou Steel shares, Jiuquan Hongxing middle of last year and so the loss of large steel enterprises in the first half of this year have achieved earnings, which, Sha steel shares in the first half net profit of 65.7346 million yuan; Baotou steel shares in the first half net profit of 27.518 million yuan; Jiuquan Hongxing the first half net profit of 227 million yuan.
For recovery performance, Sha Steel shares, said the first half of 2016, the international situation is complicated, slow global economic recovery, the domestic economy in the proactive fiscal policy and loose monetary policy in the dual role, the bottom began to show continued signs of stabilization and recovery shock . The role of iron and steel enterprises in the supply-side structural reforms, production capacity and other relevant policies to gradually refine the implementation stage of market demand and other factors, overcome market sharply oscillation unfavorable factors, and actively organize production and management, to meet market demand, some steel prices gradually get rid of the loss of business situation.
Steel prices are still up space?
Listed steel prices in the first half earnings recovery is an indisputable fact that the steel industry will continue in the second half of the first half of nirvana yet?
Some analysts said the demand side, the demand itself is cyclical, the lack of demand, depressed prices and profitability to the completion of production capacity, when cyclical recovery in demand originally less competitive production capacity has ceased to exist, capacity utilization rate can be raised, the volume of price promoting improved profitability.
At the same time, there are bodies downstream steel demand is expected in September MoM growth was essentially flat year on year, demand is likely to decline in the absence of a substantial power increase is also inadequate. Taking into account this year to increase the production capacity of (especially Hebei Province August --11 month you'd Yajian steel production capacity of 14.75 million tons), environmental supervision center may become the norm, to protect air quality during the G20 plus Tangshan Golden Rooster and Hundred Flowers Film Festival is expected to remain moderate in September, steel production release control, stock pressure is still small.
Comprehensive analysis, elimination of excess capacity in the second half is still the mainstream tone, given the same market price support. To the second half of the capacity plans have been detailed, we will continue to monitor implementation efforts.
However, one in July and August in steel consumption in the off-season, most of the steel mills arrangements for maintenance, control production rhythm. On the other hand, the central environmental supervision teams to eight provinces, Tangshan mills limited production again in late August, G20 summit affect east China mill scheduling, among other factors, the steel industry is difficult to expand the supply side, crude steel is expected in August Average daily production continues to hover around 2.15 million tons.