Steel social inventory is higher

The characteristics of the off-season are obvious
Data show that as of early January, the 29 key cities of the country’s steel social inventory is 8614,300 tons, the national key cities of building materials like structural steel pipe is 4,281,900 tons, the national key cities of the plate social inventory is 4,332,400 tons, compared to the end of last year have varying degrees of rise. At present, the actual demand for steel market is weakening, superimposed higher steel price factors, steel traders participate in the “winter storage” enthusiasm is not high, the market is still passive “winter storage”.

The person in charge of steel pipe manufacturers said that because the price is located at a high level, steel traders stock up is insufficient, passive “winter storage” has become the mainstream. Through passive “winter storage”, steel traders provide cash flow support for steel mills in the off-season, in exchange for preferential treatment and quota support for steel mills in the peak season. “Since the winter, steel production has not stopped, but the downstream infrastructure, real estate construction gradually light, so inventory growth. And steel traders’ winter storage ‘is an important way to digest steel inventory.

Earnings growth slowed in the fourth quarter
From the performance of listed companies in the steel industry, the fourth quarter of last year generally showed a slowdown in growth.
Performance report shows that CITIC Special Steel last year achieved a total revenue of about 98.574 billion yuan, a year-on-year growth of 29.43%; Net profit attributable to shareholders of listed companies was about 7.952 billion yuan, up 31.82% year on year. Citic Special Steel said that in the face of raw material market price fluctuations and other factors during the reporting period, the company actively optimized the product structure of round steel pipe, timely adjusted the product price, and achieved a stable growth of operating revenue; At the same time, multiple measures were taken to save energy, reduce costs and increase efficiency, which effectively controlled the growth of costs and expenses, thus achieving a stable growth of net profit attributable to shareholders of listed companies.

In the first three quarters of last year, CITIC Special Steel achieved a total operating revenue of 74.216 billion yuan, a year-on-year growth of 33.04%; Net profit attributable to shareholders of listed companies was about 6.062 billion yuan, up 39.42% year on year. Fushun expects net profit attributable to shareholders of steel pipe company to reach 728 million yuan to 815-million-yuan last year, up 31.98% to 47.74% year-on-year. In the first three quarters of last year, Fushun Special Steel achieved operating revenue of 5.569 billion yuan, an increase of 18.11%; Net profit attributable to shareholders of listed companies was about 685 million yuan, up 69.39% year on year.