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Spiral steel pipe information on August 5th

Number of visits: Date:2017-5-23 15:39

    On July 31, cisa revealed a "report card" of the industry: in the first half of the members in iron and steel enterprise sales income 1.7998 trillion yuan, up 0.94% from a year earlier. Deducting investment income and non-operating income and expenses, mainly iron and steel industry is still bigger losses.

    As the steel industry "leader", the day of listed steel companies but also for the natural. According to economic herald reporter statistics, as of July 31, a total of 18 listed steel companies release half annals, the pre cut, XuKui to "suffer" company has 11.

     In addition, in the first half of the cisa statistical range of large and medium-sized iron and steel enterprises, the cumulative average profit rate is only 0.13%, in June fell to 0.23%, the lowest level data in industrial industry. Dismal performance, directed at industry overcapacity.

    "Why market surplus, some companies still heavily in construction. In fact, cannot say excess production capacity, production enterprises. The new competitive projects, shall bring the original with poor competitiveness, this is the order of history, no one can avoid." Former deputy general manager of jinan iron and steel group corporation, shandong energy group, outside directors WenYanMing to herald reporters that the crux of the problem, now don't know how to go the way of transition is not industry, but in the face of transformation, production steps can took his first.
The higher, the production yield

    According to cisa, quarter of iron and steel enterprise operating conditions improved, to profitability. Comprehensive in the first half, but business is still very difficult. Until June, but also appeared for the first time this year monthly loss, loss of 699 million yuan, enterprise KuiSunMian for 36.5%. 1 - June, the cumulative KuiSunMian has reached to 40.07%.
However, from the production situation, steelmakers seem to chill a bit "not afraid" market.

   In the first half of China's crude steel output of 389 million tons, up 7.4% from a year earlier, faster than the same period last year increased by 5.6%; The national average, nissan 2.154 million tons of crude steel is equivalent to an annual output of 786 million tons of crude steel, nissan levels are high. In addition, in the first half of the high steel inventories, sinosteel association member enterprise inventory year-on-year increase of 225000 tons, an increase of 1.75%.

    "To the capacity of core, should is the change of operation mode and improve the quality of our operation, improves the matching and move forward, do not improve, change will be eliminated by the industry, which is an inevitable course of enterprise operation." And at the same time China coking industry association, director of the advisory committee of experts of WenYanMing said. On July 24, 2013 in Qingdao of China coal tar peak BBS industrial chain of supply and demand situation, the ministry of operation and monitoring of the coordination bureau chief XiaoChunQuan with "short board" theory analyzing the herald reporter said, "now we meet difficult is not fill short problem, such as iron ore is the shortest board, the market is also short, productivity is the longest board. Now steel mills production capacity more than the market demand, not only has more than global supply capacity, as well as the iron ore supply capability."

    , analysts said steel mills are tightening of funds, high cost of credit, make steel production will not high. "Now, who are reluctant to stop production, once production, steel mills don't profit, unable to repay bank credit, makes up a greater risk capital chain rupture, so the higher production, steel mill, the production of quirk."
At present, however, the capacity of control more embodies in large iron and steel enterprises.
Decline in gross margin

    Look from the listed steel companies, companies in the first half of the sharp decline in profits and losses.
On July 27, the new pipes, according to a report letters in the first half of the total revenue more than the same period last year increased by 7.47%, but 47.81% of operating profit from a year earlier. Allegedly, operating profit fell sharply was mainly affected by market demand, the unit price and the margin of the iron and steel products are also have a greatly reduced over the same period last year.

    Previously, descibes, hebei iron and steel and so on more than 10 steel listed companies issued half year performance forecast is quite poor. Which descibes shares belonging to shareholders of listed company of the first half of the net profit is expected to reduce 72 million yuan; Valin iron and steel is expected losses of between RMB 373 million - 393 million; Three steel fujian light is expected net profit will be from year-ago profit loss 15.33 million yuan into 30.65 million - 35.25 million yuan.

   Falling profits, profit margins are difficult. According to Wind information statistics, all black metal industry industry in the first quarter, the whole body hair sales rate is only 7.05%, although have certain rises from 5.01% last year, but it's still all 23 all level of lowest gross profit margins in the industry.

   Released late July 29, 2013, for example, NianZhongBao LuYin investment, its steel divisions in the first half of this year's gross profit margin is only 1.45%, was further decreased by 0.45% over the same period last year.

    High debt ratio
  
    Gross margin decline, asset-liability ratio is still high. The latest data shows that debt climbed to 69.74% in the first half of the large and medium-sized iron and steel enterprises, a minority enterprise debt ratios above 80%, individual enterprise is more than 100%. As the next step backward capacity policy announcement, some enterprise capital chain rupture may exist undoubtedly.
Business editor, steel branch He Hangsheng analysis says, "since the first half of this year, China's steel industry situation is not optimistic, KuiSunMian continues to rise, one important reason is that the iron and steel enterprise's capital chain is very tight, lead to high debt ratio."

    Arguably, of 55 listed steel companies in the country, in the first quarter asset-liability ratio in more than 70% of the company up to 18, accounting for one-third of the total, average steel asset-liability ratio of listed companies has reached 84.45%.

    Although mills ratio rising, KuiSunMian expands unceasingly, but continues to increase the capacity of many enterprises. The loss of the production become the industry norm.
"Investment in steel prices go up, also along with the rising price of iron ore. Project funding by iron ore, iron and steel enterprises the funnel flow mines abroad, that won't solve expand investment in iron and steel enterprises difficult." XiaoChunQuan said.

TypeInfo: Company News

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