【ferro-alloys.com】

  The company's net profit attributable to parent company in the first quarter is 1.6-21 billion, an increase of 971.17% to 1305.90% over the same period of the previous year. The net profit attributable to the parent company in 2020 is expected to be 1.74 billion. The reasons for the performance exceeding the expected in the first quarter are mainly divided into three aspects: macro, industry and internal.

  In the first quarter of 2021, the overall industry background was statistically analyzed, and the national steel production reached 2.966 million tons in January and February, and 3 million tons in March, all of which reached the highest level in the same period in history. The main reason for the supply is that there are many demands, the steel industry starts to resume work quickly after the Spring Festival, the situation is beyond expectation, the stock quantity of steel plant is falling rapidly and the price rises rapidly. Among them, carbon steel recently market 5600, non-oriented silicon steel 8900, 304 stainless steel reached 1643 series stainless steel reached 1316 to more than 20000, the price is also relatively good.

  Downstream demand end, mainly divided into home appliances, automobiles, ships, railways, construction machinery five industries. Among them, the demand for new energy vehicles is the largest, with a year-on-year growth of 360% in January-February this year. The main demand is silicon steel and electrical steel. The market is short of supply and demand, and there is no stock. The market is basically set to produce after 2 months. In the household appliances industry, the domestic household appliances industry undertakes the global household appliance supply, and the growth rate is about 70% higher than that of the same period last year from the three categories of refrigerators, air conditioners and washing machines. The construction machinery has grown rapidly, and the demand for steel for excavators, loaders and bulldozers is strong. The excavation in the west is 1.5 times higher than last year, and the loader and bulldozer have increased by about 80% compared with the same period last year.

  The supply side increased and the demand side was strong. The steel price began to rise all the way since the fourth quarter of 2020 due to the price rise of raw materials (coking coal, coke and iron ore). Nickel has a relatively higher, but less than iron ore, coke. At present, the futures market price of nickel is about 160000, and the price of chromium iron has risen a lot in the near future, which also strongly supports the price of 300 series and 400 series of stainless steel. Overall, the benefit is better.

  From the internal point of view, after Taigang was incorporated into the Baowu system, the mechanism changed. According to the slogan "extreme benefit", the market pre judgment after the incorporation of Baowu brings advantages, and increases the reserve of raw materials when the price of raw materials is low, so it has a great advantage at the cost end. In addition, the company itself varieties and specifications steel is relatively more, the higher the margin of profit adjustment, so the scope of adjustment is larger.

  The above great advantages have resulted in the company's performance now better than the same period last year, even better than the profits of the whole year. In terms of output, the company's output is basically full production, and the output basically changes little compared with the same period last year. It is mainly because there are some advantages in the variety structure and cost compared with other steel enterprises.

• [Editor:Catherine Ren]