Media Information

About RongSu

Raw material prices skyrocket, and Angang Steel expects net profit to decrease by 70% in the first three quarters


Since January of this year, iron ore prices have skyrocketed due to the impact of a dam collapse in Vale, as well as two other major iron ore suppliers, BHP Billiton and Rio Tinto, which reduced their shipments due to the March hurricane. However, several industry insiders have pointed out that as we enter the traditional consumption peak season of "nine gold and ten silver", multiple factors are intertwined, and steel prices and profit turning points may emerge.

The decline of the steel industry has not yet been reversed

In the third quarter, domestic steel companies have not yet completely reversed the decline caused by external factors.

On October 15th, Ansteel Group's listed steel company, Ansteel Group, released a performance forecast for the first three quarters of 2019. It is expected that from January to September this year, Ansteel Group's net profit attributable to shareholders of the listed company will be 1.722 billion yuan, a decrease of approximately 74.88% compared to the same period last year.

Ansteel Group stated that the main reasons for the significant decrease in net profit attributable to shareholders of listed companies during the reporting period compared to the same period last year are: firstly, the significant decline in steel prices due to factors such as the downturn in the domestic automotive and home appliance industries; Secondly, due to factors such as the collapse of the tailings dam in Brazil's Vale at the beginning of the year and the high demand for iron ore from domestic steel companies, raw material prices have increased, significantly compressing the profitability of steel companies.

It is worth noting that information from Lange Steel Network shows that in the 41st week of 2019 (2019.10.8-10.11), Lange Steel's national comprehensive steel price index reached 146.7 points, an increase of 0.07% compared to before the holiday and a decrease of 13.15% compared to the same period last year.

At the same time as prices have decreased, international mining giants have taken control of iron ore prices, becoming another major factor that erodes the profits of steel companies. According to the China Steel Association, at the end of September, the China Steel Price Index (CSPI) was 106.09 points, a decrease of 0.96% from the beginning of the year and a year-on-year decrease of 15.55%; During the same period, the CIF price of imported iron ore from CIOPI increased by 30.31% compared to the beginning of the year, with a year-on-year increase of 22.07%.

The fluctuations in iron ore prices stem from changes in the supply of international mining giants such as Vale. On the afternoon of January 25th this year, a tailings dam leakage occurred in the mining area of Vale in Brumadiniu, Minas Gerais, Brazil, which directly led to the shutdown of Vale's 93 million ton iron ore production capacity.

Related News


Environmental Information Disclosure Form for Enterprises and Institutions

1、 Basic Information 2. Discharging Information Note: The total emissions of the receiving enterprise are calculated based on the emission concentration at the discharge outlet. The approved total emissions refer to the emissions approved by the environmental protection department. 3、 Construction and Operation of Pollution Prevention and Control Facilities 4. Environmental Impact Assessment of Construction Projects and Other Environmental Protection Administrative Permits 5. Emergency Plan for Sudden Environmental Events 6. Environmental Self Monitoring Plan 1. Basic Information (1) Enterprise Overview Jiangsu Huayang Nylon Co., Ltd. is a high-tech enterprise mainly engaged in the production, sales, and service of polymer new materials, engineering plastics, nylon plastic parts, and polyester yarn. Huayang nylon


02 Environmental Information Disclosure Form for Enterprises and Institutions - According to the New Pollutant Discharge Permit

Unit name: Jiangsu Huayang Nylon Co., Ltd Registered address: Maozhuang Village, Duntou Town, Hai'an City, Nantong City, Jiangsu Province Industry category: Nylon fiber manufacturing, boilers


European investment bank postpones decision on whether to suspend financing of fossil fuel projects

The bank's president, Werner Hoyer, urged the bank to take the lead in funding sustainable projects and proposed in July to stop issuing fossil fuel loans before the end of 2020.


Raw material prices skyrocket, and Angang Steel expects net profit to decrease by 70% in the first three quarters

Since January of this year, iron ore prices have skyrocketed due to the impact of a dam collapse in Vale, as well as two other major iron ore suppliers, BHP Billiton and Rio Tinto, which reduced their shipments due to the March hurricane.


Plastic film production process

Plastic film production process: There are various methods for forming and processing plastic films, such as rolling, tape casting, blow molding, stretching, etc. In recent years, biaxially stretched films have become the focus of attention. In the future, biaxial stretching technology will develop more towards special functional films, such as thick film stretching, thin film stretching, and multi-layer co extrusion stretching.


Review of the Domestic PE Plastic Raw Material Market

The domestic PE market has been continuously declining this month, and it was consolidated at the end of the month. At the beginning of the month, although linear futures strengthened, the support for the spot market was limited.