Steel pipe industry cycle

Cisa’s latest statistics show that in the first half of the year, the national key iron and steel enterprises operating income of 3,459.4 billion yuan, a year-on-year growth of 51.5%; The total profit was 226.8 billion yuan, up 2.2 times year on year; Sales profit margin of China hollow section was 6.56%, up 3.47 percentage points year-on-year.

As of the close of August 27, A share A total of 29 listed steel enterprises disclosed 2021 half annual report. The average operating revenue of the 29 steel enterprises was 28.736 billion yuan, compared with 18.459 billion yuan in the same period of last year, up 55.67%; The net profit attributable to shareholders of the listed company was about 1.599 billion yuan, compared with 511 million yuan in the same period of last year, an increase of 212.92%. The average gross margin was 13.24%, up 1.05 percentage points from 12.19% a year earlier.

In the first half of the year, under the favorable environment of the sustained and stable recovery of the national economy, the iron and steel industry was operating in a good situation, showing the overall situation of booming production of mild steel tube and sales and improving efficiency. Most steel enterprises achieved rapid growth in the first half of the year. Shandong Iron and Steel semi-annual report shows that in the first half of the year, the company achieved operating revenue of 58.834 billion yuan, and the net profit attributable to shareholders of the listed company was 2.103 billion yuan, up 46.54% and 508.69% year-on-year respectively.

Many China steel tube factories in the first half of the year to improve quality and efficiency, tonnage of steel costs appear significantly reduced. Recently, China Iron and Steel Association released the production of steel enterprises show that in the middle of August this year, crude steel daily output of 2.1379 million tons, a month-on-month increase of 4.6%, a year-on-year decrease of 1.07%; The daily output of pig iron was 1.8715 million tons, up 2.12% month on month and down 1.82% year on year; Steel daily output of 2.0612 million tons, up 7.59% month on month, down 0.32% year on year. This month, the national cumulative crude steel daily output 2,778,200 tons, down 0.77% month on month, down 9.19% year on year; The daily output of pig iron was 2.334 million tons, down 0.68% month-on-month and 7.88% year-on-year; Steel daily output of 3,533,700 tons, decreased 1.31% month on month, decreased 8.05% year on year.

In terms of inventory, key iron and steel enterprises’ steel inventory in mid-August was 14,934,200 tons, an increase of 312,200 tons or 2.13% over the previous ten days. An increase of 1.1206 million tons, up 8.11% over the end of last month; An increase of 3.3132 million tons, 28.51% over the beginning of the year; Compared with the same period last year, an increase of 1.2091 million tons, up 8.81%. According to the control requirements of rectangular steel pipe, its output in the second half of the year shall not exceed 490 million tons, and shall not exceed -11.61% year-on-year.