Since October, the integration of steel enterprises has accelerated, Shagang intends to transfer 60% of Nangang, Jingye Group formally signed a contract to acquire the United Steel of northern Guangdong. Industry insiders said that the increase in concentration is conducive to promoting the high-quality development of the steel industry.
Operating under pressure
Demand recovery is less than expected, coupled with high raw fuel costs, steel companies face greater operating pressure.
Nangang’s net profit attributable to the mother of the first three quarters was 2.077 billion yuan, down 43.02% year-on-year. Among them, the third quarter net profit attributable to the mother was 512 million yuan, down 58.33% year-on-year. The company said that steel production decreased year-on-year during the reporting period, while the prices of major raw fuels increased.
Shagang’s net profit for the first three quarters was 426 million yuan, down 48.47% year-on-year. Among them, the net profit in the third quarter was 64.7853 million yuan, down 76.87% year-on-year.
Baosteel achieved a net profit attributable to the mother company of RMB 9.464 billion in the first three quarters, down 56.2% year-on-year. Among them, the third quarter achieved a net profit attributable to the mother of 1.672 billion yuan, down 74.3% year-on-year. Baosteel said that the steel market in general showed weak demand and low expectations, and steel prices were sluggish. The domestic steel price index fell 16.2% in the third quarter, and the international steel price index fell 21.3% in the third quarter. During the reporting period, iron ore prices were on a downward trend, but coal and coke prices generally remained high, and coupled with the impact of exchange rates, raw fuel costs had limited room for decline, and the purchase and sales spreads of steel enterprises continued to narrow.
Post time: Nov-04-2022