The incremental profits brought by the domestic steel enterprises' price increase in the first quarter still fall into the pockets of foreign iron ore suppliers such as “Two Extensionsâ€. According to the "Economic Information Daily" reporter, in the first quarter, the price of steel (4896, 21.00, 0.43%) rose by about 17%, the price of iron ore rose by 40%, and the cost increase far exceeded the increase of steel prices. At the same time, in the context of the policy tightening that led to the return of demand, the daily output of steel in the middle of April has reached a new high, and the cost transfer capacity of domestic steel enterprises has become increasingly insufficient, and the operating pressure has become increasingly apparent. “Only from the digital point of view, steel companies’ sales revenue and profits have rebounded in the first quarter, but overall, the steel industry is still in the “high-yield, low-profit†cycle.†An official member of the China Iron and Steel Association 26 According to the reporter, in the first quarter, the sales revenue of the steel association members was 840.8 billion yuan, a year-on-year increase of 26.95%, of which the profit was about 24.46 billion, an increase of only 12.88%. It is worth noting that the decline in profits caused by rising costs such as iron ore has become more apparent in March. The latest authoritative data obtained by the Economic Information Daily also showed that the sales revenue of the steel industry in March was 297.87 billion, up 13.55% year-on-year. However, profits fell by 3.82% year-on-year to just 8.34 billion yuan. According to the latest statistics of China Steel Association, from January to March, the steel industry's total profit margin was 2.91%, down 0.36 percentage points year-on-year. “The profit from sales revenue has long been eroded by the high price of ore.†Many steel mills have admitted to the reporter that in fact, the steel industry has not got rid of the fate of “working for the three major minesâ€. According to statistics from the China Iron and Steel Association, from January to March, the average CIF price of iron ore was US$157/ton, compared with US$96.3/ton in the same period last year. More importantly, the upward trend of iron ore continues. According to the "Iron Steel Industry Operation Situation" released by the National Development and Reform Commission on April 13, the spot price of iron ore with a grade of about 63% has reached about 185 US dollars / ton, seriously squeezing the profit margin of steel enterprises. Xu Xiangchun, the director of steel network consulting, told reporters that the rough calculation shows that the price of steel in the first quarter rose by about 17%, while the cost of iron ore rose by 40%. The cost increase far exceeded the increase of steel prices. Most steel mills have great operations. pressure. At the same time as iron ore price increases, the “high output†of China's steel industry is also worrying. According to the authoritative sources of the above-mentioned steel association, according to the statistics of major domestic steel companies, the daily output of steel in the middle of April reached a record high of 1.979 million tons. If this is estimated, the annual steel output will exceed 720 million tons, and the situation of steel oversupply will continue to deteriorate. "'High yield' will increase the demand for raw materials such as iron ore, which will lead to further increase in ore prices. On the other hand, the competition brought by the 'high output' of China's steel also inhibits the rise of steel prices. In the case of transfer, the high cost can only be digested by the steel mill itself." The above-mentioned people admit. "We should be especially vigilant about the high output." Xu Xiangchun said that steel mills should reasonably control production and strive to achieve a basic balance between supply and demand. Because the direct increase in production will increase the demand for raw materials such as ore in the steel mills, the three major mines will also use this demand signal to rapidly increase the price of ore, and the later operation of the steel mill will inevitably become more rampant. "If we calculate the lower ore price in the first quarter, the marginal contribution of our factory's current steel is 600 yuan. It is difficult to make a profit after subtracting the fixed cost. From the current trend of ore price increase, if the steel can not raise the price, steel The situation facing the factory later is even more difficult.†A steel mill in Central China said frankly. However, the fall in the demand side made him not expecting the price increase. He believes that due to the significant reduction in new construction projects in the real estate industry, the automobile and home appliance industries are also relatively sluggish. Coupled with the tightening of the national credit tightening policy, the downstream enterprises are unable to digest the price increase of steel. Xu Xiangchun judged that due to the influence of the state's macro-control policies and downstream demand, coupled with the constraints of domestic steel supply exceeding demand, it is unlikely that steel prices will rise in the second quarter.
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