Some Chinese steel companies expect losses in the first half of 2023

Such forecasts are assumed by Linyuan I&S, Shandong I&S, Chongqing I&S, Xinjiang Bayi Steel and Ma'anshan I&S

Five Chinese steel companies forecast losses in the first half of 2023. Such predictions are based on a weaker-than-expected recovery in listed industries. Kallanish reports about it with the reference to data from the Shanghai Stock Exchange.

Such forecasts are assumed by Linyuan Iron & Steel, Shandong Iron & Steel, Chongqing Iron & Steel, Xinjiang Bayi Steel and Ma’anshan Iron & Steel.

Chongqing Iron and Steel notes that the main factor behind the loss is the affected real estate industry. Although demand for steel slowly recovered in the second quarter in some regions, such as Xinjiang, all companies believe that raw material prices fell more slowly than steel prices. This is what affected their results.

Meanwhile, Hangzhou Iron & Steel reported a net profit of only 54 million yuan, down 89.5% from January-June 2022.

Estimated losses of five Chinese steel companies in the first half of 2023:

• -97.75 million yuan – Linyuan Iron & Steel (131 million yuan – profit in 2022);
• -230-260 million yuan – Shandong Iron & Steel (1.098 billion);
• -435 million yuan – Chongqing Iron & Steel (516.4 million yuan);
• -771 million yuan – Xinjiang Bayi Steel (144 million yuan);
• -2.24 billion yuan – Ma’anshan Iron & Steel (1.43 billion yuan).

As GMK Center reported earlier, China in January-June 2023 increased steel production by 1.3% compared to the same period in 2022 – up to 535.64 million tons. In June, Chinese steelmakers increased steel production by 1.1% compared to May and 0.4% compared to June 2022 – up to 91.11 million tons.

Export of steel from China during this period increased by 31.3% compared to the same period in 2022 – up to 43.58 million tons. In June 2023, Chinese steelmakers shipped 7.51 million tons of steel for export, which is 10.1% less compared to in May