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China's steel output exceeds 1.36 billion tons in 2023
Recently, China Steel Association released 2023 China's crude steel, steel production data. In 2023, China's crude steel output was 1019.08 million tons, unchanged from the same period last year, while steel output was 1362.68 million tons, an increase of 5.2 percent over the same period last year, exceeding the general expectations of previous institutions. Judging from the current performance forecasts disclosed by listed companies in the steel industry, the performance of listed companies in the steel industry in 2023 is clearly differentiated.
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Recently, China Steel Association released 2023 China's crude steel, steel production data. In 2023, China's crude steel output was 1019.08 million tons, unchanged from the same period last year, while steel output was 1362.68 million tons, an increase of 5.2 percent over the same period last year, exceeding the general expectations of previous institutions. Judging from the current performance forecasts disclosed by listed companies in the steel industry, the performance of listed companies in the steel industry in 2023 is clearly differentiated.
Decline in industry profitability
On January 17, data released by the China Iron and Steel Association showed that in December 2023, China's crude steel output was 67.44 million tons, down 14.9 percent year-on-year; pig iron output was 60.87 million tons, down 11.8 percent year-on-year; steel output was 108.5 million tons, up 1.5 percent year-on-year; and coke output was 41.28 million tons, up 4.8 percent year-on-year. In 2023, China's crude steel output was 1019.08 million tons, unchanged from a year earlier; pig iron output was 871.01 million tons, up 0.7 percent from a year earlier; steel output was 1362.68 million tons, up 5.2 percent from a year earlier; and coke output was 492.6 million tons, up 3.6 percent from a year earlier.
From the perspective of the performance forecast of listed companies in the iron and steel industry, of the five listed companies in the iron and steel industry that have disclosed their performance forecasts, two have increased in advance, one has turned losses, one has lost money for the first time, and one has continued to lose money.
Zhongnan shares expect the net profit attributable to shareholders of listed companies to be 10 million yuan in 2023, a year-on-year turnaround. In 2023, the profitability of the steel industry declined significantly due to high raw fuel prices and falling steel prices. In the face of the severe situation in the industry, the company adheres to the scientific performance evaluation system and technological innovation, and has achieved a turnaround through cost reduction and efficiency measures. In 2023, the company expects the net profit of non-recurring gains and losses attributable to shareholders of listed companies to be about 0.407 billion yuan, mainly the realized income from the disposal of non-current assets of 0.149 billion yuan, the total income from value-added tax plus deduction and other government subsidies included in the current profit and loss of 0.203 billion yuan, and the realized income from carbon emissions trading of 0.032 billion yuan.
Shandong Iron and Steel expects the net profit attributable to shareholders of listed companies to be a loss of 0.45 billion yuan to a loss of 0.37 billion yuan in 2023. The company said that the situation in the steel market in 2023 was extremely severe. The company actively responded to the downward pressure on the steel market, continued to deepen lean management, closely focused on increasing the purchase and sale price difference, and strengthened the linkage of production, purchase and sales, which still could not eliminate the impact of substantial profit reduction in the market.
Demand is expected to improve
For the current market, Soochow Securities research report shows that the total supply further decline, demand is mainly supported by some steel traders winter storage, supply side by poor profits and steel mill maintenance, a slight decline. Steel prices are expected to be mainly supported by market sentiment and raw material costs under the condition of weak supply and demand, showing a volatile trend.
Regarding the 2024 market forecast, Wang Jianhua, chief steel analyst of Shanghai Ganglian E-commerce Co., Ltd., said that domestic steel prices will show twists and turns in 2023. The domestic steel industry is expected to increase supply and demand in 2024, with crude steel demand increasing by about 19 million tonnes compared to 2023. From the structural point of view, 2024 continues to be optimistic about the growth of steel demand for new energy, steel structure, shipbuilding and other industries.
Zhongtai Securities Research Report shows that 2024 is expected to continue to grow steadily, the future economic recovery speed is expected to accelerate, while the special government bonds directly boost infrastructure demand, is expected to promote the physical workload to accelerate the landing, steel medium-and long-term demand is expected to improve significantly, the fundamentals of long-term good. (China Securities Journal)
Source: China Mining Network
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