Recently, a 4-million-ton steel company has stopped production, and another 6-million-ton steel company has put all employees on vacation! The overall hot metal production of these two large steel plants has declined, which has also caused the average daily construction steel production to drop to about 11,000 tons.
Image source: Steel District
At the same time, Tongling Fuxin Steel Co., Ltd. issued a notice to encourage Fujian employees to resign voluntarily, and all employees reduced their salaries by 30%.
Image source: Steel District
At this stage, steel mills generally suffer a loss of 200 yuan/ton; due to problems such as freight and slow depotting of steel, steel mills in the central and western regions have higher costs and greater losses, close to 400-500 yuan/ton. . is under greater pressure to stop and reduce production. continues to be produced, supply and demand are scissoring in a negative direction, and the subsequent cash flow is tight, affecting the overall production and operation of the steel plant. Many steel mills held meetings and stated that they must live a tight life, and some steel mills held meetings to ask employees to pick up scrap steel...
Many listed steel companies have successively released performance forecasts for the first half of the year. A sharp decline in net profits has become the main theme, and many steel companies have already suffered huge losses. Among the 25 steel companies that have disclosed performance forecasts, 20 steel companies are expected to see a year-on-year decline in profits in the first half of the year, including Shaogang Songshan, Sanshan Steel Minguang, Baotou Steel, Chongqing Steel, Ling Five companies, including Steel Co., Ltd., saw their first-half net profits decline by more than 80% compared with the same period last year. Another five companies experienced losses and their pre-cuts exceeded 100%.
Liuzhou Iron and Steel Co., Ltd. is expected to have a net loss of 950 million yuan attributable to its parent company in the first half of the year, compared with a profit of 1.888 billion yuan in the same period last year; Anyang Iron and Steel is expected to have a net loss of 750 million to 950 million yuan attributable to its parent company in the first half of the year ; Taigang Steel Listed steel companies such as Stainless Steel, Chongqing Iron and Steel, and Bengang Steel Plate Co., Ltd. all saw net profits decline by more than 50% year-on-year in the first half of the year.
According to Cement Internal Reference, the biggest dilemma currently faced by the steel industry is just a microcosm of many other industries.
Cement: The quotation is as low as the cost line, setting the largest decline since the 21st century
In the first half of 2022, cement prices in North China, Northeast China, East China, Central and South , Southwest and Northwest China all fell month-on-month. Among the 15 provinces in southern my country, there The decline in cement production in 11 provinces was the largest since the 21st century. The wide range of coverage and the magnitude of the decline are rare in history.
In addition, the performance of many listed companies in the cement industry also reflects the current situation of losses in the entire industry.
Soochow Cement: Profit attributable to owners of the company in the first half of the year will be reduced to A loss of approximately HK$19.944 million (approximately RMB 25.595 million for the six months ended June 30, 2021, equivalent to approximately HK$29.546 million) , decreases by approximately 167.5% .
Yatai Group : It is expected that the net profit attributable to shareholders of listed companies in the first half of the year will be -500 million yuan to -580 million yuan; the net profit after deducting non-recurring gains and losses will be - 515 million yuan to - 595 million yuan .
Fujian Cement : The net profit attributable to shareholders of listed companies in the first half of the year is expected to be -88 million yuan. Compared with the same period last year, there will be a loss; the net profit after deducting non-recurring gains and losses will be -95 million yuan. .
Tibet Tianlu:The net profit attributable to shareholders of listed companies in the first half of the year is expected to be -145 million yuan to -133 million yuan, a year-on-year decrease of 309.99% to 292.61%; the net profit after deducting non-recurring gains and losses is - 150 million yuan to -138 million yuan, a year-on-year decrease of 333.20% to 314.54%.
Conch New Materials: The net profit attributable to shareholders of listed companies in the first half of the year is expected to be -7 million yuan to -10 million yuan , and the net profit after deducting non-recurring gains and losses will be -18 million yuan to -26 million yuan.
Recently, P.O42.5 cement in Xinjiang Bole area was quoted at 180 yuan/ton, setting the lowest price record this year, which is equivalent to the cost price of Conch Cement . The market situation is sluggish, new lines are frequently put into production, and the prices of many cements have approached the cost line. Some companies began to shift to a sales model of "low price, high sales volume" and used low-priced cement to seize market share. This led to the collapse of Xinjiang's regional market coordination, fierce price competition among cement companies, and excessive price declines.
Chemical Industry: The prices of more than 80 kinds of chemical products have fallen, production and sales are not prosperous, and companies have lost hundreds of millions of yuan.
Recently, the prices of more than 80 kinds of chemical raw materials have dropped, almost halving from the price at the beginning of the year. And affected by the epidemic, chemical companies in many places are operating normally. Due to restrictions, the decline in production and sales combined with the decline in selling prices has made chemical companies miserable, with some losing money. The performance of listed companies in the chemical industry also illustrates this point. There are many companies that have lost millions of yuan, and losses of hundreds of millions of yuan are not uncommon.
Bohai Chemical: It is expected that the attributable net profit achieved in the first half of 2022 will be approximately -170 million yuan to -180 million yuan, which will result in a loss compared with the same period last year.
Shanghai Petrochemical : The net profit attributable to shareholders of the parent company in the first half of the year is expected to be -498 million yuan to -358 million yuan , which is expected to be a loss compared with the same period in 2021;
Kangda New Materials : is expected to be in the first half of 2022 had a net profit loss of 9.71 million yuan to 16.65 million yuan. had a profit of 27.75 million yuan in the same period last year.
Jilin Chemical Fiber : It is expected that the net profit loss attributable to shareholders of listed companies in the first half of 2022 will be 80 million yuan to 95 million yuan, a year-on-year decrease of 296.23% to 333.02%.
Sanjiang Chemical: expects its net loss attributable to equity holders for the six-month period ending June 30, 2022 to be between RMB 70 million and RMB 90 million , a year-on-year decrease of more than 120%.
Shenyang Chemical : It is expected that the net profit attributable to shareholders of listed companies in the first half of 2022 will be a loss of 150 million yuan to 180 million yuan. It made a profit of 376.33 million yuan in the same period last year, turning from profit to loss year-on-year.
Real estate explosions have become a common occurrence
Before there was the "liquidation petition" of Evergrande Group , and later there was the "huge debt explosion" of Shimao Group . Thunder explosions and defaults in the real estate industry have become a "common occurrence", with many billionaire giants also been affected. Halfway through 2022, most real estate companies are shrinking, laying down, cutting prices, and collecting payments to save themselves. According to incomplete statistics, more than 30 real estate companies have "exploded", and debt defaulters abound.
In addition, the thunderstorms among real estate companies have not only affected real estate companies and employees, but also affected more than 50 industries upstream and downstream of the real estate company industry chain.
Suspension of work and production, staggered production, etc. all reflect the current situation that it is difficult for various industries to survive without exception. According to Tsinghua University statistics: In the first half of 2022, a total of 460,000 companies across the country announced their bankruptcy, and a total of about 3.1 million individual industrial and commercial households canceled their registrations.
Compared with the forced shutdowns during previous epidemics, whether it is a passive shutdown or an active reduction in production, it is difficult to calm down. Judging from the recent semi-annual reports disclosed by listed companies, more than 70% of companies suffered losses in the first half of this year, with many companies losing tens to hundreds of millions. Leading companies are still in this situation, not to mention many small and medium-sized enterprises?
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