The steel industry Chunyan reported that the steel group known as the cowhide stocks can be regarded as suffering all the hardships. After getting rid of the haze of the epidemic, operations in the second half of the year will be “monthly prosperous”. As the international iron ore, coal and other raw materials prices continue to soar, there is a source of material Became the winner, and the domestic steel market ushered in the biggest price increase in recent years. Sinosteel (2002-TW), Toko (2006-TW) And Fung Hing (2015-TW) And other major manufacturers have raised their quotations, and the fundamentals of upstream, midstream and downstream factories have improved, and the industry is expected to flourish until the first half of next year.
The wave of price increases has hit the steel industry this time. Sinosteel paid good results in November. It successfully turned profit in the first November and made a small profit of 219 million yuan. The domestic sales price for January and the first quarter of next year was recently announced, and seven major products have been adjusted up. , An increase of 1200-1500 yuan per metric ton, with an average adjustment of 6.1%, the largest single-season increase since the second quarter of 2017. Chairman Weng Chaodong pointed out that he is optimistic about the continued boom in the steel market in the first half of next year and hopes to accumulate energy and continue to rise. Price momentum is up to the second season.
Due to the epidemic situation, Sinosteel No. 2 blast furnace was shut down for overhaul in July. The fourth generation of furnace has been successfully completed. The ironmaking intelligence platform has been introduced, and AI intelligence can be used to reduce production costs and effectively reduce greenhouse gas emissions. After the furnace, it just met the upward trend of market conditions and put the firepower into full production. Sinosteel estimates that shipments this season will increase to 2.9 million tons, and orders in the first quarter of next year are expected to exceed 3 million metric tons.
China Steel Structure (2013-TW) Since September, revenue has returned to the trend of annual growth. The fourth quarter will be the most prosperous quarter of the year. The cumulative revenue for the first November is 11.997 billion yuan, and the annual decline has converged to 19%. China Steel Structure revealed that the current order visibility is clear, and the industry has seen the second half of next year, and the industry is optimistic. Zhonghong (2014-TW) Consolidated revenue in November was 3.13 billion yuan, an annual increase of 30.6%. The cumulative revenue in the first November reached 33.52 billion yuan, a year-on-year decrease of 11.59%. With the increase in steel prices for six consecutive months, operations fell on sugarcane in the second half of the year.
Donghe Steel’s chairman Hou Jieteng revealed at the Fa-Speaking Conference that at TSMC (2330-TW) And Taiwan’s large-scale return to Taiwan to expand factories, the current demand for steel reinforcement and section steel is good, and orders for steel structures will be seen in the third quarter of next year, and even the first quarter of 2022 has been discussed with customers. As for the Vietnamese factory, the situation has improved this year. Although it is still at a loss, the cash flow has been balanced, and we will strive to turn profit next year.
The international raw material market is booming. Both the US and Japan’s scrap steel soared by 16.7%. The fourth quarter entered the traditional peak season for construction. Strong demand, coupled with the rising trend of scrap steel, also increased the downstream industry’s efforts to replenish inventory. The quotation was not enough to cover the cost, and it was fully closed. In order to reflect the rising cost, Fengxing announced that this week the rebar will rise 700 yuan per metric ton, and the section steel will rise up to 1,000 yuan this week. Various electric furnace plants have also followed up, including Haiguang (2038-TW), Weizhi (2028-TW) Wait.
Benefited from the strong global demand for automobiles, home appliances and construction projects, and Taiwanese companies are actively returning to set up factories this year, the downstream is stepping up replenishment and stocking, including the galvanized steel coil manufacturer Ye Hui (2023-TW), the spring rain of the screw fastener factory (2012-TW) And Hang Yiu (8349-TW), Dacheng Steel (2027-TW), Shin Kong Steel (2031-TW), Sheng Yu (2029-TW), Peibo (6248-TW) And Hengyao (8349-TW) Etc., the fourth quarter performance of related downstream factories gradually turned strong.
In addition, the price of nickel in the LME period has risen to a new high in more than one year. According to market expectations, the leading stainless steel factory, Yieh United (9957-TW) In January next year, the market price is expected to increase and continue the upward trend to the first quarter of next year. Therefore, it is expected that Yunqiang (2034-TW), Zhangyuan (2030-TW) And other downstream players will follow the rise, adding the fourth quarter camp sports energy.
According to legal analysis, the steel market has seen the largest overall price increase in recent years, and there is constant rush for materials in various places. Sinosteel and Donggang have successively received requests from middle and downstream steel mills to increase supply, but their production capacity cannot be met, and demand continues to rise. Steel prices are likely to rise in the short-term but never fall. However, the leading company Sinosteel still needs to accelerate reform and transformation, improve physical fitness, and enhance the competitiveness of the domestic steel industry as a whole.
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