Steel industry operation status and market outlook

Analysis of production situation of iron and steel enterprises According to statistics, since November 2008, the daily output of crude steel in national and key statistical steel enterprises has steadily increased. The scale of Nissan's production of non-key statistical steel enterprises has gradually narrowed, which is related to restructuring and joining associations. The national crude steel output reached a record high in June 2011 (1.97 million tons per day); the key statistical steel enterprises hit a record high in June 2011 (with a daily output of 1,675,500 tons). Domestic crude steel output in August was 58.752 million tons, an increase of 13.8%. The average daily output was 1,895,200 tons, a decrease of 18,000 tons per day from July, and a new low for the year, which was the first time in the year to be less than 1.9 million tons. The fluctuation of daily output of crude steel in non-key statistical steel enterprises is much larger than that of key statistical steel enterprises. The minimum operating rate of key statistical steel enterprises is 90%, and the minimum operating rate of non-key statistical steel enterprises is 40%. From the beginning of the year to October, the fluctuation of output of non-key enterprises is highly correlated with the market. Analysis of economic benefits of key steel enterprises Key cost analysis of key steel enterprises: In June 2011, the cost of iron ore increased significantly. It is estimated that the procurement cost of raw materials (iron ore, coal, coke) of steel enterprises will increase by about 50%. Capital costs and labor costs have increased significantly. In 2011, the financial expenses of large and medium-sized steel increased significantly; the three expenses of management, finance and sales accounted for 19.25% of the cost of sales, compared with 19.48% in the same period of last year. Total wages accounted for 2.90% of total costs, down from 3.18% last year; depreciation accounted for 3.91% of total costs, down from 4.43% last year. By strengthening management and reducing costs, enterprises have achieved great results; the key to improving corporate profits is to reduce raw material costs. Among the total profits of large steel companies, the profit of the main steel industry accounted for 54%, the efficiency of the mine accounted for 16%, the auxiliary industry accounted for 24%, and other investment income accounted for 6%. In the first half of 2011, the overall net profit of the parent company's steel listed companies fell by 28.03% year-on-year. In the first half of 2011, the overall sales profit rate of steel listed companies was 2.38%, while that of coal mining was 9.03%, that of construction machinery was 12.17%, and that of vehicles in the middle of adjustment was 6.33%. In the horizontal comparison, the steel industry is in a position of support and passive “dedication” in the industrial chain. Analysis of steel import and export situation Steel exports showed a downward trend month by month. The export of steel for corner profiles and railways fluctuates greatly, and the proportion of plates in steel exports exceeds 50%. Exports to South Korea increased by more than 10%, followed by India, Vietnam, Belgium, and Thailand. This year, the total billet of crude materials was 10.18 million tons, and the output of crude steel was 30.61 million tons. In July, the net export of crude steel was 3.36 million tons, and the accumulated net export was 20.43 million tons. Basic characteristics of China's steel imports: 1. Japan, South Korea, and Taiwan are the main sources of imported steel. China is the main exporter of Japanese steel. Steel companies in Japan, South Korea, and Taiwan have strengthened their research power in the Chinese market, and Chinese steel companies have done very little in this regard. The prices of steel imported from Japan, South Korea and Taiwan are all above US$1,000 (the price of imported steel in Germany is more than US$2,000, which is a real product scarcity), which is much higher than that imported from other countries (such as Russia, Ukraine, India). Steel. 2. The difference in quality between Chinese-made steel products and Japanese and Korean-made steel products has narrowed, and most steel products should have their own advantages. Japan, South Korea, and Taiwan have mainly achieved steel exports through local companies in China. Steel companies in Japan, South Korea, and Taiwan have achieved steel and manufacturing, and achieved cross-border promotion of the overall industrial chain. This is one of the core competitiveness of steel exports. 3. The stability of the quantity of steel imports shows that Japan, South Korea and Taiwan have many advantages in steel export channels. China's domestic manufacturing companies in Japan, South Korea, and Taiwan have barriers to product standards, and it is difficult for Chinese companies to participate in existing steel export channels in Japan, South Korea, and Taiwan. All the links in the entire steel import path have realized the rational distribution of benefits and evaded trade barriers. The basic characteristics of China's steel exports: 1. More than 90% of export steel is realized through general trade. The proportion of import processing trade is relatively low, and the quantity and proportion of foreign contracted projects are increasing. This is related to the expansion of overseas construction market by Chinese construction companies, and some are similar to Japan's feed processing trade. Export enterprises engaged in general trade methods are basically difficult to grasp the basic situation of foreign end users, and the comprehensive service to users has become a paper. 2. The main force of steel export is state-owned enterprises, which account for more than 50% of the export share, mostly for state-owned large trading companies or steel companies directly under the import and export company. The export volume and proportion of Sino-foreign joint ventures showed a downward trend. The export share of individual enterprises has gradually increased. Individual enterprises belong to a single trade-oriented enterprise and have certain advantages in developing new export markets. Most of China's export enterprises are trade-oriented enterprises of trade-oriented enterprises in steel importing countries, and the steel export path lacks stability. 3. From 2004 to 2008, China's steel exports of steel wire rods and bars always occupied a high proportion. In 2009, due to the adjustment of national export policies, the export volume of long products decreased significantly. Since 2005, the medium and heavy plate belt has always occupied the first place in steel export, but the medium and heavy plate belts are mostly intermediate products in the steel products. The medium and heavy plate belts exported to foreign countries are mostly used for deep processing of steel products. The proportion of pipe exports is relatively stable, but the countries in which pipes are exported are relatively concentrated. Plates and strips are mostly used in manufacturing and construction industries, but most of China's export targets are trading companies. The export volume of steel products has changed greatly in each year, and the export volume is affected by the world economic situation. The difference in price index is that the difference between the international standard price index and the domestic price index is narrowing, and the export situation in the second half is not optimistic. China's steel exports are affected by changes in the international economic situation. The situation is good, the export volume is large, the situation is poor, and the export volume is greatly reduced. China's steel exports have been subjected to many barriers. In recent years, anti-dumping cases have shown a significant upward trend. The amount of China's steel exports is highly correlated with the gap between China's steel prices and steel prices in the international market. China's steel is more of a price advantage, but the low price is not the core competitiveness of any product.

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