Into the traditional steel demand off-season, due to limited environmental pressure on production, this year, steel companies did not face a lot of pressure on excess capacity, steel prices in December will remain high.

    Since the beginning of this year, with the continuous deepening of supply-side structural reforms, the steel industry has shown a positive trend of supply and demand, steel prices continued to rise, and the benefits of enterprises have been significantly improved. In October, with the steel price fluctuating at a high level and iron ore and coke continued to fall, profitability of the steel industry continued to grow.

    National Bureau of Statistics data show that from January to October 2017, ferrous metal smelting and rolling processing industry operating income of 6071430000000 yuan, an increase of 23.3%; total profit of 273730000 yuan, an increase of 162.2%, an increase of more than January-September 43.7 percentage points. In October, the sales profit margin of the steel industry further increased to 4.69%, an increase of 2.06 percentage points from the end of 2016. The supply-side reform led to the better repair of the sales profits of the iron and steel industry.

    Towards the end of the year, will the profitability of the steel industry continue for the whole year to end in profit?

    In response, Wang Guoching, director of Lange Steel Research Center, told CBN reporter that expanding the production limit for the heating season made the supply expectation further strengthened. Therefore, the low inventory led to a large market support.

    Wang Guoqing further said that at present, steel mills have substantially raised steel prices. However, the cost of raw materials in the downstream steel industry is so high that they have a limited capacity. With the profit-driven mills increasing the production of short-term resources and the pace of "going north", market resources are scarce The phenomenon is expected to be reversed, in December the domestic steel market deposits and deposits down high risk, but the overall steel prices still continue the high operating situation. From the raw material market, the cost of steel production declined in December due to the drop in coke prices in November. The Lange Steel Research Center expects the profitability of steel mills to remain at a high level in December.

    Lange steel cloud business platform data monitoring shows that as of December 8, the national steel stocks of 6.65 million tons of social. Although overall social steel stocks remained relatively low under the "low inventory" operating mode of steel traders in recent years, this figure is still still lower by 5.376 million tons than the average of 12.0929 million tons in the past six years, Compared with a peak of 20,796,000 tons in 2013, a decrease of 14,142,000 tons, a drop of 68%, the lowest level in recent years.

    Not only that, unlike most previous inventory backlogs in steel mills, there is no pressure on steel mills due to a limited range of production. A number of steel traders told CBN reporters that steel mills are now well-funded and coupled with limited production, the pressure will not be too great. Therefore, steel mills will also have few stocks in the short term and there is not much risk of price drop.

    This means that the capacity of steel mills can still guarantee profits under the existing operating conditions. "At present, the steel industry's sales profit margin can be maintained at the average level of the industrial sector is more reasonable, with a certain continuity." In November 9 this year's investor exchange meeting, * ST Valin Dong Gui Luo Guiqing so judging the future Domestic steel industry trends.

    As a former hardship, * ST Hualing in 2017 to achieve the performance of a big turnaround. The latest release of the state of production and management also showed a significant improvement, * ST Hualing December 11 evening announcement that from January to November 2017, the company steel, timber production were 15,750,000 tons, 15,120,000 tons, more than in 2016 Annual production. Among them, in November the company steel, timber production was 1.55 million tons, 1.48 million tons, steel sales of 1.48 million tons.

    The first three quarters to achieve a large turnover performance, but also to * ST Hualing "picked star to cap" on the agenda. Luo Guiqing said after the disclosure of the 2017 annual report, if the Shenzhen Stock Exchange to meet the requirements of the hat, the company will immediately apply for Zhaimao.

    First Financial Inquiries found that * ST Hualing three quarterly shows that from January to September 2017, the company achieved operating income of 56.0686 billion yuan, an increase of 62.77%; to achieve the net profit attributable to shareholders of listed companies 2.572 billion yuan. The third quarter net profit of 2.126 billion yuan in a single season to achieve net profit attributable to shareholders of listed companies 1.61 billion yuan, the company's first three quarters and third quarter results were significantly higher than the historical best results.