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[special topic on SMM] Summary of annual reports of iron and steel enterprises in the first half of 2020
Sep 10,2020 11:09CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM9: affected by the epidemic, China's economic operation first declined and then rose in the first half of 2020, the main economic indicators rebounded significantly in the second quarter, and the economic operation improved steadily. The output of crude steel continues to increase, the demand for steel has gradually recovered from the sudden decline, and the contradiction between supply and demand shows a phased and structural differentiation. The upstream iron ore demand is strong, the superimposed supply is not smooth, and the price remains high. After breaking the historical record, steel inventory fluctuates downwards, but it is still in a high range. After a rapid bottoming out, steel prices began to pick up slowly in May, industry profits narrowed in May and June, and showed an overall downward trend in the first half of the year compared with the same period last year.

In the first half of the year, the iron and steel industry gradually got rid of the influence of the epidemic, resumed work and production in an orderly manner, and maintained a stable operation situation.

The output of iron and steel has increased steadily. According to the National Bureau of Statistics, the national output of pig iron, crude steel and steel products from January to June was 432.68 million tons, 499.01 million tons and 605.84 million tons respectively, up 2.2%, 1.4% and 2.7% respectively over the same period last year.

Steel exports continued to decline and imports increased sharply. According to data from the General Administration of Customs, from January to June, China exported a total of 28.704 million tons of steel, down 16.5 percent from the same period last year, and imported 7.343 million tons of steel, an increase of 26.1 percent over the same period last year.

Steel consumption continues to grow. From January to June, China's apparent consumption of crude steel was 480.66 million tons, an increase of 3.8% over the same period last year. From the perspective of the downstream steel industry, compared with the first quarter, the new construction area of real estate, automobile production and ship output increased by 145.8%, 87.1% and 55.9% respectively in the second quarter, strongly supporting the growth of iron and steel production.

Baotou Steel Co., Ltd.

During the reporting period, the company's operating income was 27.953 billion yuan, down 7.77% from the same period last year, and the total profit was 315 million yuan, down 78.11% from the same period last year. The reason for the change of operating income: affected by the epidemic, the iron and steel market continued to decline in the first half of the year, and sales volume and sales price showed a significant downward trend.

In the first half of 2020, under the influence of the epidemic, the company strengthened the prediction of the situation, made scientific decisions, adhered to the principles of "taking ironmaking as the center" and "fixing sales by sales", and vigorously implemented the "four reduction and two lifting" project. so that the epidemic prevention and control and production operation as a whole to maintain a stable and smooth trend. During the reporting period, iron production was 7.139 million tons, down 0.85% from the same period last year; steel production was 7.331 million tons, down 2.53% from the same period last year; and 6.9499 million tons of commodity billets were produced, down 1.84% from the same period last year.

Shagang shares

During the reporting period, the company realized operating income of 6.477 billion yuan, an increase of 3.89% over the same period last year; the total profit realized was 606 million yuan, down 18.89% from the same period last year; and the net profit belonging to the owners of the parent and company company was 252 million yuan, down 11.45% from the same period last year.

The company produced a total of 1.7566 million tons of steel, an increase of 12.26 percent over the same period last year; iron output of 1.46 million tons, an increase of 13.48 percent; billet output of 1.6862 million tons, an increase of 12.96 percent over the same period last year; and sales of 1.682 million tons of steel, an increase of 11.31 percent over the same period last year.

Valin Iron and Steel

In the first half of 2020, the company achieved steel production of 12.07 million tons and sales of 11.84 million tons, an increase of 4.19% and 1.19% respectively over the same period last year. At the end of June 2020, the company's asset-liability ratio was 60.07%, which was 26.74% lower than the historical high at the end of June 2016. The financial expenses for the reporting period were 374 million yuan, 19.12% lower than the same period last year, and 873 million yuan lower than the record high for the first half of 2016. The net cash flow generated by operating activities during the reporting period was 2.213 billion yuan, an increase of 301.78% over the same period last year.

Minguang of Sangang

In the first half of 2020, the company produced 5.7339 million tons of steel, 4.9578 million tons of pig iron, 5.6745 million tons of steel, 208900 tons of coke, 6.2473 million tons of sinter and 887100 tons of pellets; the operating income was 22.902 billion yuan, down 4.63 percent from the same period last year; and the total profit was 1.592 billion yuan, down 52.67 percent from the same period last year. The net profit belonging to shareholders of listed companies was 1.175 billion yuan, down 54.08% from the same period last year, and basic earnings per share was 0.479 yuan, down 54.12% from the same period last year.

Baosteel shares

During the reporting period, the company completed iron output of 21.993 million tons, steel output of 23.457 million tons, commodity billet sales of 22.324 million tons, with a total combined profit of 5.81 billion yuan. Looking forward to the second half of the year, the domestic economic fundamentals begin to repair, counter-cyclical adjustment will continue to increase, and the domestic economy will continue to recover. As the economy continues to improve, domestic steel production is expected to remain high in the second half of the year; supported by domestic steel production capacity, iron ore demand is increasing, and iron ore prices are expected to run high. In the second half of the year, the supply of coal and coke is stable, and the price is generally strong; scrap is supported by rebar and iron ore price, and the follow-up price is expected to fluctuate at a high level.

Shougang shares

During the reporting period, the output of the company's main products was completed. Qiangang: 4.07 million tons of iron, up 3 percent over the same period last year; 4.22 million tons of steel, up 2 percent over the same period last year; and 4.07 million tons of materials, up 3 percent over the same period last year. Jingtang Company: 5.85 million tons of iron, up 57 percent over the same period last year; 4.7 million tons of steel, up 12 percent over the same period last year; and 4.14 million tons of materials, up 11 percent over the same period last year. Zhixin company: 750000 tons of electrical steel, down 10% from the same period last year. Cold rolling company: 870000 tons of cold rolled sheet, an increase of 9% over the same period last year. The completion of the company's main accounting data and financial indicators. The operating income was 33.687 billion yuan, up 1.82% from the same period last year; the total profit was 754 million yuan, down 46.81% from the same period last year; the net profit of shareholders belonging to listed companies was 523 million yuan, down 43.81% from the same period last year; income per share was 0.1 yuan, with total assets of 145.383 billion yuan, belonging to 27.453 billion yuan of shareholders' equity of listed companies.

Songshan of Shaoguan Iron and Steel Company

During the reporting period, the company actually produced 3.26 million tons of iron, an increase of 2.4 percent over the same period last year, 3.9 million tons of steel, an increase of 7 percent over the same period last year, and 3.75 million tons of steel (including rolled billets), an increase of 8.6 percent over the same period last year. The operating income in the first half of the year was 14.55 billion yuan, an increase of 5.52 percent over the same period last year, and the total profit was 1.024 billion yuan, down 6.34 percent. At the end of the reporting period, the company's asset-liability ratio was 50.74%, down 4.27 percentage points from the same period last year.

Liugang co., Ltd.

Under the condition of high steel inventory in steel enterprises and society, in order to ensure the sustained and stable operation of production, the company timely implemented the strategy of "reducing material and storing billet" during the period of "output is inventory" to reduce the pressure of market supply; at the same time, it implemented the strategy of "repair and production control", focusing on the completion of three stages of smelting and annual repair of Synchronize of the power system, so as to lay the foundation for efficient production organization after the epidemic. Strengthen communication and coordination with suppliers and dealers, and actively promote the resumption of work and production in upstream and downstream industries. During the reporting period, the company persisted in taking iron and steel production as the center, carried out full-load production, "four major balances" of iron and steel, iron coke, iron burning and gas, deepened system coordination, and carefully organized blast furnace production.

Heyang Iron and Steel Co., Ltd.

In the first half of 2020, the company produced 12.37 million tons of iron, 11.75 million tons of crude steel, 11.48 million tons of steel and 87600 tons of vanadium slag; the operating income was 50.438 billion yuan, the total profit was 1.072 billion yuan, and the net profit belonging to the parent company was 693 million yuan.

Anshan Iron and Steel Co., Ltd.

In the first half of the year, the company's operating income was 44,650 million yuan, down 12.58 percent from the same period last year; the total profit was 618 million yuan, down 66.52 percent from the same period last year; the net profit belonging to shareholders of listed companies was 500 million yuan, down 64.91 percent from the same period last year; basic earnings per share was 0.053 yuan per share, down 65.13 percent from the same period last year.

Shandong Iron and Steel

In the first half of 2020, the company produced a total of 6.78 million tons of pig iron, 7.97 million tons of crude steel and 7.43 million tons of steel, an increase of 1.35 million tons, 1.71 million tons and 1.71 million tons respectively over the same period last year, and an increase of 24.84%, 27.37% and 29.92% respectively over the same period last year.

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