Abstract domestic steel industry when we can return to profitability? Recently, UBS said in its meeting of "steel and coal industries Vision", due to the long-term trend of declining mineral prices, the steel industry in 2013 is expected to losses, And will be in...
When will the domestic steel industry regain profitability? Recently, UBS said at its “Steel and Coal Industry Outlook†that the long-term trend of the mine price is declining, and the steel industry will be expected to turn losses in 2013, and Will it return to profitability in 2014?
China's steel industry is full of words such as losses, meager profits, crises, dilemmas and the like. The once-infinite industry seems to be a bit languid. Since the end of last year, steelmaking raw fuel has set off a wave of amazing gains, while steel prices have risen far less than the price of minerals, causing many profitable steel companies to return to losses.
In the past month or so, domestic steel prices have been slowly rising, but many domestic steel companies have once again fallen into losses. According to the profitability of the steel mills as of January 11, 55.21% of the 163 sample steel mills surveyed were at a loss, compared with 24.07% of the losses on December 28, 2012. Obvious expansion, the situation is not optimistic.
According to historical data, nearly 90% of the steel mills were at a loss when the steel price was at the bottom of the year at the end of August last year. When the steel price rebounded, the loss surface narrowed rapidly and then remained within 10% for a long period of time. However, since the end of last year, due to the rapid rise of raw steel for steelmaking, and the increase in steel prices is far less than the cost, many steel mills have once again lost money.
As of January 15, according to the steel price composite price index showed 139.45 points, compared with only 4.76% in early December. As one of the main raw fuels, the price index for the day was 143.9 points, a significant increase of 25.68% compared with the beginning of December. Another major fuel: coke, since the steel market improved in early September, it has risen all the way. Has not stopped yet.
In recent years, domestic steel prices have risen to iron ore, and steel companies have been working for mining companies to “workâ€. In 2012, the “working career†of domestic steel companies was miserable.
According to data released by the China Iron and Steel Association, steel companies made a profit last November, but they still could not smooth out the previous losses. From January to November, after the profits and losses of the members of the China Steel Association, the profit was a loss of 1.97 billion yuan, and only 5 months in the 11 months were profitable.
The main reason for the loss of steel companies in the industry is attributed to high iron ore prices, low steel prices and overcapacity. When talking about iron ore, many people in the industry said that the long-term trend of the mine price is falling?
UBS believes that due to the abundant supply of iron ore, its price will be slightly reduced in 2013, and it is expected to fall by 10% annually from 2014 to 2015.
As iron ore prices will show a downward trend in the future, UBS said that the Chinese steel industry is expected to turn losses in 2013. In 2014, due to the obvious decline in iron ore prices and a certain degree of domestic control over steel production capacity, profits will be greatly improved.
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