The bottomless black hole, when the steel industry is going to slide
At the same time, the economic recovery at home and abroad is slow, and the mechanical industry is wandering. At the same time, for the steel industry, its operating condition is worsening.
According to statistics, the profitability of iron and steel industry showed a negative growth in October, and the main business of profit and profit continued to decline, which has broken through the record of losses in the year and has reached a new high.
"A loss of nearly 200 yuan per ton of steel, steel mills are competing price, the situation is deteriorating." A steelmaker admitted that the steel industry has been having a very hard life since the second half of this year because of the pessimism of the latter market, on the one hand, steel mills are struggling to lower their inventories, and on the other hand, they are selling through price competition. The prospects for the steel industry next year are also not optimistic.
Combined metal network data show that the price of iron ore has fallen below the 300 pass again, and has reached a closing low of 293.5 yuan / ton. However, the continuous decline of iron ore prices did not make enterprises lose profits, and the difficulties in the iron and steel industry are still continuing to ferment.
"Iron and steel industry is like falling into the ice hole, sales are not smooth, prices are falling very seriously, which has far exceeded the cost of steel mills' red line". The continuous deterioration of operation has brought widespread losses in the steel industry. The head of an iron and steel enterprise in Hebei said.
Up to now, a number of Listed Companies in the steel industry have announced the annual report, the situation is not optimistic. The data show that in the classification of the CITIC industry, 26 of the 55 listed companies in the steel industry have announced the annual reports. In the 26 enterprises, 22 are expected to have a net profit loss or a year-on-year decline, accounting for 84.62%. From the margin of net profit, the net profit of the shares of Baosteel is expected to fall 50%-100% from the same period last year to the shareholders of the parent company at the end of the year to the next reporting period. From the net profit, SGIS loss is the most serious. The company's 2015 annual report forecast showed a 51.25% decline in net profit and an estimated loss of 2 billion 100 million yuan.
As the market continues to be weak, the funds of steel enterprises and users are in a tight state. There is great difficulty in the return of sales, especially in the low proportion of cash in the withdrawal of loans. Steel enterprises are generally facing financial constraints. As the debt ratio continues to rise, debt risk become more and more obvious, the Tangshan Songting mills and Shanxi Haixin iron and steel discontinued events is the most typical example.
"At present, most steel mills are very difficult to survive. Especially in recent years, some iron and steel enterprises that have just expanded their capacity are in a more serious situation. The market is bad and the financial cost is too high, which has exacerbated the losses." Chi Jingdong, Deputy Secretary General of China Steel Association, said.
My steel mesh chief information officer Xu Xiangchun said that this year, affected by the global environment, domestic and international steel demand is weak, especially in the domestic real estate control policies and railway infrastructure construction projects investment growth, coupled with the downstream automotive, shipbuilding, machinery, home appliances and light steel demand continues to slump that led to the decline in steel prices.
From the current point of view, although the iron ore and other raw material costs continue to drop in price, but to boost the role of iron and Steel Enterprises Limited, only construction steel prices fell this year reached 33.9%, the profitability of steel prices continued to decline, the low efficiency of the situation of the whole industry in the short term is difficult to reverse, especially the current steel production level is still high, high yield the competition also makes the price of steel is difficult to significantly improve.
The biggest problem that has led to the iron and steel industry is that capacity is still expanding when consumption is falling. According to Chi Jingdong estimates, from 2015 to 2018, China's transformation of new iron making and steelmaking capacity will be 1 billion tons, and the total capacity of China's steel will exceed 12 billion tons when the capacity of displacement is deducted. At present, the consumption capacity of domestic steel is about 7 billion tons, and the export volume is 1 billion tons, which is far less than the total capacity. This also means that the competition in the domestic market will become more intense later.
The iron and steel enterprises must come out from the extensive expansion of the scale of the model, Chinese iron and steel industry has entered a real oversupply stage, which means that the industry must reduce production, to help cut production at the same time, more important is to adjust the industrial structure, to resolve the overcapacity.
