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Liuzhou Iron and Steel: net profit fell 49.09% year on year to 2.347 billion in 2019
Apr 15,2020 15:04CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

SMM4 15: a few days ago, Liuzhou Iron and Steel Co., Ltd. released the 2019 annual report. The report showed that the company's net profit in 2019 was 2.347 billion, down 49.09% from a year earlier. In 2019, the company's iron and steel output reached 12.46 million tons, 13.67 million tons and 8.09 million tons respectively, an increase of 2.52 per cent, 4.50 per cent and 5.69 per cent respectively over the same period last year.

The company's 2020 business target: the iron production must guarantee the target 12 million tons, the struggle target 12.5 million tons; the steel output must guarantee the target 13 million tons, the struggle target 13.8 million tons; the steel output must guarantee the target 7.25 million tons, the struggle target 7.9 million tons.

After three years of "resolving excess capacity", the policy dividend brought about by supply-side structural reform gradually declined, the pressure of high supply in the iron and steel industry appeared in 2019, and the market price showed a downward trend. The sharp rise in superimposed iron ore prices eroded the profits of enterprises, and the profit level of the industry dropped significantly.

Looking forward to 2020, China is expected to vigorously promote reform and innovation, counter-cyclical adjustment policies will accelerate landing, in order to maintain the resilience of economic development, infrastructure investment is expected to pick up, the manufacturing industry is expected to remain stable under the "steady growth" tone. However, it still needs to be noted that the growth rate of demand in the rest of the downstream steel industry, such as real estate and industrial manufacturing, may slow down, and new replacement capacity will be concentrated in 2020-2021 in recent years, the trend of high supply in the industry is difficult to change, and the intensification of the contradiction between supply and demand is bound to have an impact on market prices, and profits in the steel industry are expected to decline further.

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