Steel prices rose slightly and then oscillated down
2022-11-19 10:07:03
Steel prices fell for several consecutive months. In the previous month, there was a turnaround and a slight increase. However, yesterday, domestic steel prices fluctuated downward.
In the first half of this year, the continuous decline in steel prices has caused steel companies to make almost no money or even losses. The drop in prices has caused steel companies to decline in capacity for three consecutive months. "It has been falling for so long, and it should rise again." Liu Yong, an analyst at Bohai Securities, said.
After mid-July, steel prices finally turned around and began to rebound. Baosteel and other large steel companies took the lead in raising steel prices, and then dozens of steel companies also raised their ex-factory prices. However, on August 23, the domestic steel market price fluctuated again.
In this regard, Jinan Iron and Steel Securities Affairs Representative Chen Jian told this website that the downstream demand has not changed significantly, so the previous round of price increases is not sustainable.
Follow the trend
After the steel price rebounded, large steel companies such as Baosteel took the lead in price adjustment, and then several steel companies announced an increase in ex-factory prices.
“The reason for the price increase of Baosteel is mainly due to the recent price increase of the automobile and home appliance sectors. A large part of Baosteel's plates serve the automobile and home appliance enterprises. However, the steel service of other companies is not the same, and should belong to the follow-up price. Going up." Jinan Iron and Steel Securities Department staff said.
“Looking at the price increase of Baosteel, it has also risen.†Laiwu Steel Co., Ltd. (600102.SH, hereinafter referred to as “Laigang Steel (8.97, 0.17, 1.93%))†also believes that the staff of the Securities Department.
Chen Jian, a securities affairs representative of Jinan Iron and Steel Co., Ltd. (hereinafter referred to as “Jinan Iron and Steelâ€), said, “The average price increase is about 10%.â€
Jinan Iron and Steel and Laiwu Steel are subsidiaries of Shandong Iron and Steel Group. After integration, the product varieties are relatively complete, and the production capacity of Shandong Steel is also among the best in the country.
Jinan Iron and Steel mainly provides corresponding products for the shipbuilding industry. Only a small amount of services are provided to automobile companies, which is more affected by the shipbuilding industry. Recently, the demand for shipbuilding steel is not so strong, because the shipping industry has a 1-2 year lag period. Recently, shipping orders have increased, and it will take a year to see the results.
According to statistics, Baosteel's varieties are directly or indirectly raised by 150-800 yuan / ton. The main varieties of Anshan Iron and Steel increased by 350-1000 yuan / ton, and the main plate varieties of WISCO were increased by 200-800 yuan / ton.
In addition to Laiwu Steel and Jinan Steel, dozens of steel companies such as Shagang and Kunming Steel have raised their ex-factory prices.
"The price increase of iron and steel enterprises is definitely not the result of joint industry. It will not be the result of internal consultation. It is only to see the boss rise, but also to rise." Liu Yong said.
Baosteel has always been called “industry host†in the industry, so its price adjustment policy changes have the role of industry wind vane.
Price increase is not sustainable
For the above-mentioned one-month price increase, Chen Jian said that there is no significant change in downstream demand, and this round of price increases is not sustainable. “The price of steel has risen, and the industry's production capacity has gone up,†said Liu Yong, an analyst at Bohai Securities.
Overcapacity in the domestic steel industry is still very serious. On the 8th, the Ministry of Industry and Information Technology of the People's Republic of China announced to the public the list of enterprises that eliminated backward production capacity in 18 industrial sectors, requiring that the backward production capacity of these enterprises must be closed before the end of September this year. At present, there are about 3,000 small steel enterprises in China, most of which are located in Hebei, a major steel producing province.
Industry analysis, the country released a list of outdated production capacity, not listed in the elimination list, the company will consider itself legal, will take the opportunity to expand production capacity, which in turn exacerbates the release of backward production capacity, especially for private enterprises, the surplus situation is different And different.
Laiwu Steel's annual report analysis said that overcapacity in the steel industry has become a reality, and brutal competition is hard to avoid; the prices of bulk raw materials such as iron ore and coal continue to operate at high levels, and steel prices continue to fluctuate, resulting in high corporate costs and overall profitability. Weak, business pressure is increasing.
Laiwu Steel's annual report shows that the company's gross profit margin reached 6.59%, an increase of 2.20 percentage points over last year.
The analysis believes that this is the benefit of low-cost inventory of iron ore. In the first half of the year, the iron ore stocks purchased at low points were ingested. With the recent price hikes of iron ore, the real pressure on steel companies is concentrated in the third and fourth quarters.
At the same time, steel prices have risen, and raw material iron ore prices have also risen, after iron ore prices have been suppressed by steel prices. Liu Yong, an analyst at Bohai Securities, said, "Steel enterprises are also hurt for the price increase, and they are also injured. â€
In addition, Vale's iron ore will rise again in the third quarter compared to the second quarter.
Liu Yong said that Baosteel's price increase is very cautious and the increase is not large. Baosteel should see that this price increase is unsustainable.
On August 23, the domestic steel market price fluctuated downward. According to the statistics of Lange Steel, the price of construction steel market is slightly lower; the price of hot-rolled sheet has fallen sharply; the price of cold-plate market has been weakly consolidating; the price of plate has declined in a narrow range; the price of coating market has temporarily stabilized; the price of strip has begun to fall; The price of welded pipes fell slightly, the price of seamless pipes was stable, and the profile market was slightly adjusted.
In the first half of this year, the continuous decline in steel prices has caused steel companies to make almost no money or even losses. The drop in prices has caused steel companies to decline in capacity for three consecutive months. "It has been falling for so long, and it should rise again." Liu Yong, an analyst at Bohai Securities, said.
After mid-July, steel prices finally turned around and began to rebound. Baosteel and other large steel companies took the lead in raising steel prices, and then dozens of steel companies also raised their ex-factory prices. However, on August 23, the domestic steel market price fluctuated again.
In this regard, Jinan Iron and Steel Securities Affairs Representative Chen Jian told this website that the downstream demand has not changed significantly, so the previous round of price increases is not sustainable.
Follow the trend
After the steel price rebounded, large steel companies such as Baosteel took the lead in price adjustment, and then several steel companies announced an increase in ex-factory prices.
“The reason for the price increase of Baosteel is mainly due to the recent price increase of the automobile and home appliance sectors. A large part of Baosteel's plates serve the automobile and home appliance enterprises. However, the steel service of other companies is not the same, and should belong to the follow-up price. Going up." Jinan Iron and Steel Securities Department staff said.
“Looking at the price increase of Baosteel, it has also risen.†Laiwu Steel Co., Ltd. (600102.SH, hereinafter referred to as “Laigang Steel (8.97, 0.17, 1.93%))†also believes that the staff of the Securities Department.
Chen Jian, a securities affairs representative of Jinan Iron and Steel Co., Ltd. (hereinafter referred to as “Jinan Iron and Steelâ€), said, “The average price increase is about 10%.â€
Jinan Iron and Steel and Laiwu Steel are subsidiaries of Shandong Iron and Steel Group. After integration, the product varieties are relatively complete, and the production capacity of Shandong Steel is also among the best in the country.
Jinan Iron and Steel mainly provides corresponding products for the shipbuilding industry. Only a small amount of services are provided to automobile companies, which is more affected by the shipbuilding industry. Recently, the demand for shipbuilding steel is not so strong, because the shipping industry has a 1-2 year lag period. Recently, shipping orders have increased, and it will take a year to see the results.
According to statistics, Baosteel's varieties are directly or indirectly raised by 150-800 yuan / ton. The main varieties of Anshan Iron and Steel increased by 350-1000 yuan / ton, and the main plate varieties of WISCO were increased by 200-800 yuan / ton.
In addition to Laiwu Steel and Jinan Steel, dozens of steel companies such as Shagang and Kunming Steel have raised their ex-factory prices.
"The price increase of iron and steel enterprises is definitely not the result of joint industry. It will not be the result of internal consultation. It is only to see the boss rise, but also to rise." Liu Yong said.
Baosteel has always been called “industry host†in the industry, so its price adjustment policy changes have the role of industry wind vane.
Price increase is not sustainable
For the above-mentioned one-month price increase, Chen Jian said that there is no significant change in downstream demand, and this round of price increases is not sustainable. “The price of steel has risen, and the industry's production capacity has gone up,†said Liu Yong, an analyst at Bohai Securities.
Overcapacity in the domestic steel industry is still very serious. On the 8th, the Ministry of Industry and Information Technology of the People's Republic of China announced to the public the list of enterprises that eliminated backward production capacity in 18 industrial sectors, requiring that the backward production capacity of these enterprises must be closed before the end of September this year. At present, there are about 3,000 small steel enterprises in China, most of which are located in Hebei, a major steel producing province.
Industry analysis, the country released a list of outdated production capacity, not listed in the elimination list, the company will consider itself legal, will take the opportunity to expand production capacity, which in turn exacerbates the release of backward production capacity, especially for private enterprises, the surplus situation is different And different.
Laiwu Steel's annual report analysis said that overcapacity in the steel industry has become a reality, and brutal competition is hard to avoid; the prices of bulk raw materials such as iron ore and coal continue to operate at high levels, and steel prices continue to fluctuate, resulting in high corporate costs and overall profitability. Weak, business pressure is increasing.
Laiwu Steel's annual report shows that the company's gross profit margin reached 6.59%, an increase of 2.20 percentage points over last year.
The analysis believes that this is the benefit of low-cost inventory of iron ore. In the first half of the year, the iron ore stocks purchased at low points were ingested. With the recent price hikes of iron ore, the real pressure on steel companies is concentrated in the third and fourth quarters.
At the same time, steel prices have risen, and raw material iron ore prices have also risen, after iron ore prices have been suppressed by steel prices. Liu Yong, an analyst at Bohai Securities, said, "Steel enterprises are also hurt for the price increase, and they are also injured. â€
In addition, Vale's iron ore will rise again in the third quarter compared to the second quarter.
Liu Yong said that Baosteel's price increase is very cautious and the increase is not large. Baosteel should see that this price increase is unsustainable.
On August 23, the domestic steel market price fluctuated downward. According to the statistics of Lange Steel, the price of construction steel market is slightly lower; the price of hot-rolled sheet has fallen sharply; the price of cold-plate market has been weakly consolidating; the price of plate has declined in a narrow range; the price of coating market has temporarily stabilized; the price of strip has begun to fall; The price of welded pipes fell slightly, the price of seamless pipes was stable, and the profile market was slightly adjusted.
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