[Epoch Times, August 30, 2022](Epoch Times reporter Chen Ting comprehensive report) As one of China’s largest metal producers, Ansteel Group recently said that despite the CCP’s announced stimulus measures, the second half of the year is still full of uncertainty , the challenges that hit China’s steel industry in the first half of the year will continue to exist.
On Friday (August 26), Ansteel Group released its first-half financial report at the semi-annual board of directors, saying that under the triple pressure of demand contraction, supply shock, weakening expectations, and the impact of the COVID-19 epidemic, China’s steel industry is suffering huge amounts of money. pressure.
This well-known Chinesereal estateThe crisis-hit steel giant said in a report that its net profit in the first half shrank by 67.05%. The report also warned that the challenges that hit China’s steel industry in the first half of the year are likely to persist for the rest of the year.
According to Bloomberg (Link), Ansteel’s warning comes as China’s steel industry faces a worsening outlook including rising inventories and falling profit margins.
Bloomberg pointed out that sluggish demand may be the main negative factor for China’s steel industry.According to the media survey, economistsChina’s economyForecasts have become increasingly pessimistic and have cut growth forecasts for 2023. (understand more)
Over the years,real estatealways supportChina’s economyThe main driver of growth, home prices have risen steadily for decades. However, this growth trend in the real estate industry has been dashed with the CCP’s implementation of capital supervision and extreme epidemic prevention blockades on real estate developers, posing a huge threat to the steel industry. Some experts said that if China’s economy continues to decline, many steel companies may go bankrupt. (understand more)
According to a report released by China Huajing Industry Research Institute in March this year, more than 50% of China’s ordinary steel is used in the construction industry, while 40% of special steel is used in the automotive industry. However, both industries have been hit hard this year.
Angang said in a statement that measures taken by the Chinese authorities to stabilize the economy may help consumption gradually recover in the second half of the year, but the future of the industry remains highly uncertain. It said fears of a potential global recession had led to a sharp drop in steel prices since June, with steelmakers already posting massive losses.
According to the report of the National Bureau of Statistics of the Communist Party of China on July 27 this year, from January to June this year, China’s ferrous metal smelting and rolling processing industry (including ironmaking, steelmaking, steel rolling and ferroalloy smelting) realized a total profit of 82.6 billion yuan (approximately $12.2 billion), down 69% year-on-year.
Ansteel said the company’s goal in the second half is to counter the weak market by cutting costs and strengthening cash management to prevent liquidity risks.
For now, the CCP is still adhering to a strict “zero policy”, and repeated blockades mean more delays in construction projects are likely and will continue to hit consumer sentiment.
On Monday, emergency notices were issued in many places in China. Shenzhen, Chengdu, Wuhan, and Dalian upgraded the prevention and control measures. Shenzhen Luohu, Futian and Longhua introduced global control measures. The people are “unnecessarily inseparable”.
Shijiazhuang, the capital of Hebei province, which borders Beijing, reported 45 cases on Sunday, so starting in the afternoon, residents of the city’s four main urban areas will be confined to their homes for three days, saying mass testing will take place. The city of about 11 million also suspended all subway service and halted non-essential business operations in the locked-down areas.
Responsible editor: Ye Ziwei#