Iron And Steel Industry Is Coming To Prison

The "tight days" of China's steel industry have really arrived.

On the 1 day, a series of data released by China Iron and Steel Industry Association showed that the cost of smelting in China's steel enterprises increased by more than 50% in the first half of the year due to the rise of raw fuel prices.

Although large and medium-sized steel enterprises have realized profit growth in general, losses and losses have increased.

"Iron and steel enterprises should be prepared for tight days."

Zhang Xiaogang, President of the China Iron and Steel Association and general manager of Anshan Iron and Steel Group, issued such an admonition.

China Steel Association announced that in the first half of the year, the average manufacturing cost of steel making pig iron increased by 57.57%, but in June, the figure was 70.21%. "This shows that this trend is still increasing," said Luo ice Sheng, executive vice president of China Steel Association.

Luo Bingsheng said that the main reason for the increase in cost is a large increase in the price of purchased raw materials and fuels, which cost up to 80% of the total cost of steelmaking.

Among them, the average procurement cost per ton of coal injection increased by 36.85%, coking coal increased by 61.63% (up 94.86% in June), metallurgical coke increased by 81.8% (up 113.42% in June), import ore rose 53.86%, and domestic ore increased 95.35%.

Prior to the three session of the four standing committee of the China Iron and Steel Industry Association in July 30th, the president of the China Iron and Steel Industry Association, Zhang Xiaogang, general manager of Anshan Iron and Steel Group, said that there were uncertainties and instability in the operation of the steel industry in the second half of the year.

Iron and steel enterprises should make preparations for tight days, adjust their production and operation strategies in time, and formulate countermeasures.

"Enterprises should not be blind and optimistic, but should reduce the cost and increase efficiency."

Zhang Xiaogang said that in the second half of the year, the further increase in the price of coal and oil pportation will bring more and more pressure on the production cost. Iron and steel enterprises can reduce the cost of production by reducing the price of steel products, and the difficulty of production and operation is increasing.

Because of the rising cost of steel production, the overall profit level of enterprises has declined.

It is reported that 71 large and medium-sized steel enterprises included in the statistics achieved sales revenue of 1 trillion and 327 billion 383 million yuan in the first half, up 41.78% from the same period last year, and realized a profit of 101 billion 47 million yuan, an increase of 26.1% over the same period last year.

In the first half of this year, the sales profit of large and medium iron and steel enterprises was 7.61%, 0.95 percentage points lower than that of the same period last year, and 4 of the 71 iron and steel enterprises suffered losses, with a loss of 424 million yuan, an increase of 5.12 times compared with the same period last year, with a deficit of 5.63%.

In addition, the difficulties faced by enterprises in production and production are facing increasing capital turnover, especially in small and medium-sized iron and steel enterprises.

It is worth noting that in the first half of this year, the profits of large and medium steel enterprises included in statistics reached 101 billion 47 million yuan, an increase of 26.1% over the same period last year, and the profit level was fairly satisfactory.

But Dan Shanghua, Secretary General of China Steel Association, reminded us that the actual situation is not optimistic from the composition of profits in the first half of the year.

In the first half of this year, the investment income of large and medium-sized steel enterprises reached 16 billion 250 million yuan, accounting for 16.08% of the total profit.

If the investment income factor is deducted, the profit of the main steel industry will be only 84 billion 797 million yuan, up by 22.71% over the same period last year.

The sales profit margin of large and medium sized iron and steel enterprises in 1-6 was 7.61%, which was 0.95 percentage points lower than that of 8.56% in the same period last year.

Dan Shanghua said, the above situation shows that in the first half of this year, the profit of large and medium sized steel enterprises increased by 26.1% over the same period last year, but after deducting investment income and increasing production and income factors, the actual profit increased by only about 14%, and the potential risks and difficulties of the whole industry increased significantly.

In the first half of the year, the top 20 enterprises that made the most profits realized a total profit of 82 billion 100 million yuan, accounting for 81.24% of the total profit, and the industry profits were obviously concentrated on the dominant enterprises. On the other hand, 71 large and medium-sized enterprises had 4 households' losses, 2 more than the same period last year, and the deficit was enlarged.

"If the supply and demand relationship of domestic steel market is reversed in the second half of the year, the fluctuation of steel prices will have a significant impact on the profitability of enterprises, and will impact the stable operation of the whole industry. This is a cause for great concern."

Dan Shanghua said.