Looking back to the first half of 2022, steel prices fall steeply, affected by the epidemic, macroeconomic data fell significantly, downstream demand sluggish. At the same time, Russia-Ukraine conflict and other factors leadto high prices of raw materials, and steel mills and the market profit is meagre. Some steel enterprises even stop production. The second half of 2022 has come, How will the steel industry deal with the current grim situation? Recently, 3 steel enterprises are in response to the current industry situation, market hot spots and response strategies. The specific measures are as follows:
BAOSTEEL: July and August will be the most difficult two months. After that, the prices will rebound, but steel prices and market demand is difficult to return to the high point at the beginning of the year. At present, the macro-environment is complex and changeable, and the situation of the Iron and steel market is grim. Baowu Group Corporation of China is doing its utmost to normalize and systematize the“ThreeDrops And TwoIncreases”, comprehensively search for the bad mark, and continuously improve efficiency and efficiency, establish Baowu long-term and lasting competitive advantage, accelerate the high-quality development of enterprises.
Puyang Iron and Steel: At present, the situation of steel market is very serious, making little money and the whole industry has entered a general loss cycle, and from the perspective of supply and demand, the perspective of the international and domestic economic situation, this cycle will be very long. From frequent production restrictions in the first quarter until the epidemic was brought under control in April, downstream demand contracted, market expectations weakened, raw material prices rose, prices of finished materials fell sharply. The ability of steel enterprises to resist market risks has declined, and the profits of steel mills have shrunk by more than 50% . One-third of the sector reported losses in May, with losses continuing to widen in June and virtually all sectors reporting losses in July.
Shandong Iron and Steel Group: In the second quarter of the market , the profit level of the steel industry dropped sharply, we actively deal with the market fluctuations, search potential increase in profits. Sequently in the environment of the steel industry profit level fells nearly 60% year-on-year, shandong Steel Group’s decline is lower than the industry average, the comparative advantage is increasingly obvious.
Post time: Jul-25-2022