Since 2023, the steel industry has faced difficulties such as weakening demand and falling prices, which has led to the general pressure on the performance of steel enterprises. According to Eastern Wealth Choice data show that as of July 30, there are 24 listed companies in the steel industry released the first half of the performance forecast, of which 15 are expected to lose money, accounting for more than 60 percent .
Among the 24 iron and steel enterprises that have disclosed the performance forecast for the first half of 2023, 15 companies are expected to lose money, with a total loss of about 9.958 billion yuan. Among them, Jiusteel Hongxing's net profit pre-fall is the largest, the performance forecast shows that the company is expected to achieve net profit attributable to shareholders of listed companies in the first half of the year is -397 million yuan, the same period last year was -42.61448 million yuan, down about 831.95 percent . The company expects to lose about 2.238 billion yuan in the first half of the year, compared with a net profit of 1.428 billion yuan in the same period last year.
As far as steel prices are concerned, since the beginning of this year, the average level of steel prices has declined year-on-year, showing a narrow fluctuation trend. According to the China Iron and Steel Association monitoring, in the first half of the year, the average value of China's steel price index (CSPI) was 113.21 points, down 15.4 percent year-on-year. Lange Steel cloud merchant platform monitoring data show that in the first half of the year, the average Lange steel comprehensive steel price index was 4335 yuan/ton, down 843 yuan/ton from the same period last year, a decline of 16.3 percent .
In the first half of this year, the operating conditions of the entire steel industry are not optimistic. Data from the National Bureau of Statistics show that in the first half of 2023, the ferrous metal smelting and rolling processing industry achieved operating income of 4,039.04 billion yuan, down 9.6 percent year-on-year, and the total profit of 1.87 billion yuan, down 97.6 percent year-on-year.
