Steel enterprise profits fell into a strange circle

On the one hand, the stock price fell, on the one hand, the net profit under pressure, the bottom of a dozen self-unloading trucks filled with iron ore, the busy giant unloader, the dock full of a cargo ship, piled brown The square of black iron ore... Looking into the distance, on the side of the road, the white is the sea, the gray is the sky. Came to the home port area, the wind is cold, and large container ships are moving around. Since the beginning of 2011, Tianjin Port’s busy scene of “downward global economic growth” has not been imagined by Wang Huiqing, who is responsible for loading and unloading at No. 10 berth in Tianjin Gangnan. "In the middle of the year, the ship was a little unexpected. I often went to two boats a day, most of them came from Australia." Wang Huiqing introduced the reporter to the reporter, and used his hand covered with ash to arrange the clothes of the winter clothes. collar. Under normal circumstances, port iron ore shipments are directly proportional to the productivity of steel mills, and the increase in shipment speed means that steel mill productivity is further increased. The contradiction at this time is that one side is the increased productivity of the steel mill, while the other side is the sales profit of “four sides of the song”. Steel enterprises fall into the "slow down" on the Shenzhen Stock Exchange investor relations interactive platform, Valin Steel's announcement frankly: the company lost 163 million yuan in the first three quarters of this year, the fourth quarter of the steel industry business situation began to deteriorate, steel prices fell sharply, The company's turnaround pressure has increased throughout the year, and there is still uncertainty about whether it can turn losses around the year. In the following half of the month, Valin Steel's share price continued to drop. On December 5, it fell to 2.83 yuan per share, and the day's decline was 1.72%. As a result, the sluggish performance, the industry downturn and the continued decline in the broader market have caused Hualing Steel's share price to “fall down” and even refresh its 12-year low. In fact, the phenomenon of Valin Steel is not a case. As of the end of November, according to the stock prices of 20 listed steel companies, only the annual growth rate of Jinan Iron and Steel's stock price rose by only 0.85%. However, Baosteel, Wuhan Iron and Steel, and Angang Steel all fell more than 6.5% in the month, and have fallen more than 20% this year. According to the statistics of Great Wall Securities, since the third quarter, the Shenwan Steel Index has fallen from 2,985 points to 2,383 points, a drop of 20.05%, and the market fell 14.59% during the same period. In terms of individual stocks, except for Shougang, which was suspended, the decline was above 10%. The biggest decline was that Baotou Steel Co., Ltd. fell 33.41%; the least-loss was Xining Special Steel, which had the highest gross profit margin, which fell 10.61%. Responding to the continuous decline in stock prices, the general decline in profit margins has become a lingering “shadow” of the steel industry. According to the semi-annual report data, among the 39 A-share listed steel companies, there were 17 net profit declines. Take Valin Steel as an example. In 2010, Hualing Steel lost a total of 2.64 billion yuan. In the first quarter of 2011, the company still lost about 215 million yuan. In the second quarter, the company's single-quarter net profit has been significantly reduced to -26.74 million yuan. The company's accumulated net profit for the first three quarters was -1.74 billion yuan, which also significantly reduced losses and approached the break-even line. The reporter noted that according to the three quarterly reports, the net profit of Guanggang, Angang and Maanshan Iron & Steel Co., Ltd. decreased more significantly, which was 2258.77%, 90.71% and 99.6%, respectively. For the reason, the third quarter report of Guangzhou Iron and Steel Co., Ltd. reported that it was mainly due to high steel production costs and low investment income. The rise in raw materials directly led to a significant increase in the actual procurement costs of steel companies. From January to October, the total cost of actual product sales of 77 large and medium-sized iron and steel enterprises reached 280.738 billion yuan, an increase of 25.2% over the same period of the previous year. The rise in costs is not the whole reason. On the one hand, it has to bear the stock price "falling down", on the other hand, the net profit under pressure is going to bottom out. The question is why is the steel industry so bleak? The “increased raw material cost” described in the Guangzhou Steel Third Quarter Report is not the whole reason. One of the reasons for the reporter's interview with many people is that the oversupply situation in the steel market continues to accumulate. China Steel Association data show that from January to October this year, ferrous metal mining industry fixed assets investment completed 102.9 billion yuan, an increase of 17.4% over the same period of the previous year; smelting and rolling processing industry fixed assets investment completed 313.6 billion yuan, an increase of 18.9 over the same period of the previous year %. In November, small and medium-sized steel mills started construction. “In December, the daily output will rise again. This means that the production capacity of the steel industry will increase further next year,” explains Kong Xiangpeng, an analyst with the steel industry group of Debon Securities. But the direct response to excess production is that there is not much channel in the market to digest the backlog of steel. Han Jing, head of Green Futures, told reporters that the first is that the real estate industry has experienced a “cold winter” demand for rebar. Taking affordable housing as an example, according to the data released by the Ministry of Housing and Urban-Rural Development, the task of starting 10 million sets of affordable housing in the country has been completed 98% this year, and there is no follow-up construction investment. There is also infrastructure investment in the second half of 2011, especially the railway construction has dropped sharply. Data show that from January to October 2011, the railway's fixed asset investment decreased by 25.2% year-on-year. At this time, the contradiction between supply and demand is prominent, which directly leads to the backlog of steel mills. As of the end of October, the inventory of social steel in 22 cities and 5 steel products was 12.8 million tons, up 31.68% over the beginning of the year; the steel inventory of large and medium-sized steel enterprises was 11.177 million tons, up 24.39% from the beginning of the year. Looking for a breakthrough, but not to be overlooked, the steel industry as a capital-intensive industry, the debt ratio is nearly 70%, and most of them come from bank loans. The iron and steel enterprise capital chain is under pressure. At this time, financing became the "Shangfang sword" in the hands of steel enterprises. As a result, the announcement of the issuance of bonds, bills and financing bills by steel companies “has one after another”. According to the incomplete statistics of the reporter, from the beginning of October to November 16, eight steel companies have issued or proposed to issue bonds or notes. On November 16, Forefoot Anyang Iron and Steel Co., Ltd. just announced that it had ended the issuance of the first phase of corporate bonds of RMB 1 billion. The company also applied for the issuance of medium-term notes with a total amount of not more than RMB 2 billion. In addition, it also includes 8 billion yuan of 5-year unsecured medium-term notes of Hebei Iron and Steel; Anyang Iron and Steel intends to issue corporate bonds of no more than 1.8 billion yuan in two phases. According to Wind statistics, as of November 28 this year, steel companies plan to raise 31.98 billion yuan through bond issuance. In 2010, the scale of steel companies' bond issuance was 13 billion yuan, and in 2009 it was only 2 billion yuan. And steel enterprises issued debts have shown a significant acceleration trend since the second half of this year. Since August, seven steel listed companies have issued debts of 16.98 billion yuan, exceeding the 15 billion yuan in the first six months. The so-called "two-pronged approach", in order to alleviate the predicament, steel companies issued bonds and bill financing, while actively reducing inventory, the inventory in hand is also sold as much as possible. Debon Securities statistics show that from the end of October, whether it is Baosteel, Wuhan Iron and Steel, Anshan Iron and Steel and other large steel mills or small and medium-sized steel mills, the ex-factory price of plate products in December has been significantly reduced and subsidized, especially for the agreement households. Big. According to the reporter, the difference between the listing price and the settlement price of a steel mill's plate is more than 1,000 yuan / ton. The actual arrival price of some products has been lower than the current market price, and the year-end steel mills have become increasingly fierce for the 2012 agreement.

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