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SGIS loss of 1 billion 600 million yuan behind steel enterprises losses in the first three quarters

Release time: 2016-05-05
Browsing times: 46

Anshan in Jukui international steel prices plummeted across 13 months

According to incomplete statistics, 34 iron and steel listing Corporation, 22 steel companies have disclosed the results of the notice, notice three quarterly loss of steel enterprises accounted for more than 2/3.

Even the price of cabbage can not catch up with the price of steel, still continue to fall.

On October 20, China Iron and Steel Industry Association (CISA) released the latest report shows that by the end of September, the Steel Association CSPI China steel price index for 61.19, 3.42 percent decline, year on year decline nearly three percent.

In the monitoring of the CISA wire rod and rebar, plate, hot-rolled coil, cold rolled sheet, galvanized plate, angle steel and hot-rolled seamless steel tube, etc. eight major steel varieties, prices fell across the board, fell in 48-117 yuan / ton range.

Not only that, September CRU international steel composite price index also fell 3%, down 25.9% to 121.8 points, down thirteenth consecutive months.

A shares of steel listing Corporation are being released three quarterly notice. Interface news reporter statistics found that has released three of the Quarterly Bulletin or notice of steel enterprises, have been plunged into huge losses, including during the first half of this year recorded a profit of enterprises, also fall into the third quarter loss "black hole".

Is a typical representative of the iron and steel shares. The first half profit of 1.55 billion yuan, for the third quarter Yukui 10.43 billion yuan, three quarter will fall into a loss of 8.88 billion yuan, and last year, Anshan Iron and Steel shares profit 923 million yuan.

"Bleeding" is not the most serious iron and steel shares. Baosteel Group's controlling subsidiaries SGIS is expected in the first three quarters of losses of up to 16 billion yuan, provisional steel enterprises in the first three quarters of the loss of the king.

Three quarter loss of more than the first half of the loss of a few. Shougang shares in the first three quarters of Yukui 5.2 billion - 6.2 billion yuan, of which three quarters of losses for 3 billion to 4 billion yuan, compared to the same period last year profit of 10.79 million yuan. Greater losses of Valin Iron and steel, the first three quarters Yukui 9 billion to 13 billion yuan, which in the third quarter loss - 11.5 7.5 billion yuan, compared with a year earlier profit 4306 million yuan.

In addition, three steel Minguang also Yukui 6.4 billion -6.49 billion yuan, relatively few private enterprises Shagang shares losses in the third quarter, 995 million yuan, but excluding non often gains or losses and losses increased to 1393 million yuan, drop compared to the same period 18.2%.

According to incomplete statistics, 34 iron and steel listing Corporation, there are 22 steel companies to disclose the results of the notice, which as many as 15 companies notice three quarterly loss, accounting for more than 2/3.

For huge losses, iron and steel enterprises generally interpreted as steel prices accelerated decline". In fact, the root cause of the decline in the price of supply and demand continues to deteriorate.

With the downward pressure on the macro economy, steel demand continues to shrink. National Bureau of statistics data show that the first three quarters of gross domestic product (GDP) growth of 6.9%, down 0.3 percentage points, of which the three quarter of the chain fell 0.1 percentage points. 1-9 months, the national fixed asset investment (excluding farmers) growth rate than 1-8 months down 0.6 percentage points, infrastructure investment growth rate fell 0.3 percentage points, real estate development investment growth fell 0.9 percentage points.

At the same time, crude steel production does not fall to rise. National Bureau of statistics data show that in September the country's average daily output of crude steel production of more than 2.07% tons, an increase of more than.

According to customs statistics, in September the country exported 11 million 250 thousand tons of steel, 1 million 10 thousand tons of imported steel, net exports of 10 million 240 thousand tons of steel, equivalent to 10 million 630 thousand tons of crude steel. According to the above data, in September the domestic market crude steel apparent consumption of 55 million 490 thousand tons, a decline of 6.1%, making the market oversupply situation more tense.

In addition, the main raw material prices decline, also weakened the support of the steel price. According to the monitoring of the CISA, September, imports of iron ore stone (customs) average price is $5.801 / tons, annulus comparing fell 2.65%; domestic iron ore and scrap prices were up to turn down, chain fell 4.45% and 0.98%; coking coal and metallurgical coke prices were decreased 2.19% and 3.55%.

In addition to the price factor, the RMB exchange rate has a significant impact on steel prices. At present, the domestic steel prices of raw materials mainly rely on imports, most companies have foreign exchange transactions, and the three quarter of RMB devaluation led to significant fluctuations in the exchange rate, so that foreign companies are subject to greater losses. Angang and Valin that notice in the results mentioned in the "loss" factors.

"From the situation has been published, the current situation of enterprises operating over the first half of the year will be a large decline in the situation, the difficult situation of enterprise management is self-evident." Steel analyst Liu Xinwei thinks, domestic iron and steel enterprises in the fourth quarter will face greater pressure on production, cut-off overhaul and passive shutdown of the enterprise will be more and more, to tighten their belts and the day is just the beginning.

However, there are a lot of analysts optimistic about the four quarter of the steel market. They generally believe that with the steady growth in the fourth quarter measures continue to overweight, the downstream steel market demand is expected to from a certain extent, get rid of real estate will bring negative effects, coupled with the recent overhaul steel increased, sliding under the steel prices could weaken is expected fourth quarter steel prices are expected to rebound to stabilize. (Interface)

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