Image source: Internet

Recently, the China Iron and Steel Association released2023the annual data on crude steel and steel production in China.2023In the year, China's crude steel production was101908million tons, unchanged year-on-year; steel production was136268million tons, a year-on-year increase of5.2%, exceeding the general expectations of previous institutions. From the performance forecasts disclosed by currently listed companies in the steel industry, the performance of listed companies in the steel industry2023shows significant differentiation this year.

The industry's profitability level has declined.

　　1In the month17, the data released by the China Iron and Steel Industry Association shows that2023In the year12, China's crude steel production6744wasmillion tons, a year-on-year decrease of14.9%6087was; pig iron productionwas down by 11.8%10850million tons, a year-on-year increase of; steel productionwas down by 1.5%4128million tons, a year-on-year increase of; coke productionwas down by 4.8%.2023In the year, China's crude steel production101908was87101million tons, a year-on-year increase ofmillion tons, unchanged year-on-year; pig iron productionwas down by 11.8%136268million tons, a year-on-year increase of5.2%was down by 1.5%49260million tons, a year-on-year increase ofwas down by 0.7%was down by 4.8%.

3.6%5From the perspective of performance forecasts of listed companies in the steel industry, among the2listed steel companies that have disclosed performance forecasts,1companies expect an increase,1companies expect to turn losses into profits,1companies expect to incur losses for the first time,

companies expect to continue to incur losses.2023Zhongnan Co. expects1000the net profit attributable to shareholders of the listed company to be2023million yuan, turning losses into profits year-on-year.2023In the year, affected by high raw material prices and falling steel prices, the profitability level of the steel industry has significantly declined. In the face of the severe industry situation, the company adheres to a scientific performance evaluation system and technological innovation, and through cost reduction and efficiency enhancement measures, has achieved a turnaround from losses to profits. The company4.07is expected to have a net profit impact of about1.49billion yuan from non-recurring gains and losses attributable to shareholders of the listed company, mainly from the disposal of non-current assets realizing gains2.03billion yuan, VAT deductions and other government subsidies included in current profits and losses totaling0.32billion yuan, and carbon emission trading realizing gains of

billion yuan.2023Shandong Steel expects4.5the net profit attributable to shareholders of the listed company to be a loss of3.7billion yuan to a loss of2023billion yuan. The company stated that

the steel market situation in the year is exceptionally severe, and the company actively responds to the downward pressure of the steel market, continuously deepening lean management, focusing on improving the purchase and sale price difference, and strengthening the coordination of production, purchase, and sales, but still cannot eliminate the significant profit reduction impact from the market.

Demand is expected to improve.

For the current market, Dongwu Securities research report shows that the total supply is further declining, and demand is mainly supported by some steel traders' winter storage. On the supply side, affected by poor profitability and steel mill maintenance, there is a slight decline. In the case of weak supply and demand, steel prices are expected to be mainly supported by market sentiment and raw material costs, showing a volatile trend.2024Regarding the market forecast for the year, Wang Jianhua, the chief analyst of steel at Shanghai Steel Union E-commerce Co., Ltd., stated that2023the domestic steel prices in the year showed a fluctuating trend. It is expected that2024the domestic steel industry will see an increase in both supply and demand, with crude steel demand increasing by about2023million tons compared to1900the year.2024From a structural perspective, the year continues to be optimistic about the growth of steel demand in industries such as new energy, steel structures, and shipbuilding.

Zhongtai Securities research report shows that2024the year is expected to continue stable growth, with the future economic recovery speed expected to accelerate, and special government bonds directly boosting infrastructure demand, which is expected to promote the acceleration of physical workload, significantly improving the medium- to long-term demand for steel, with a long-term positive fundamental outlook. (China Securities Journal) Source: China Mining Network