Prediction of Steel Industry Trends in 2023

1. Overview of Steel Industry in 2023

The steel industry has experienced three stages since the beginning of this year, with the industry index prices gradually declining. This is mainly due to the continuous impact of factors such as pandemic control measures and a slowdown in real estate investment, which have led to a sluggish market. Additionally, the implementation of production restrictions policies on the supply side has not been widespread, and the raw material side...

2. Introduction to Baosteel Group (600010)

Baosteel Group is a leading steel producer in China, with advanced equipment and state-of-the-art technology. It is also the controlling shareholder of Rare Earth High-Tech Co., Ltd., which has a monopoly on global rare earth resources, making it a unique strategic investment opportunity. The company's key financial indicators include a gross profit margin of 5.91% and a capital...

3. Performance of Steel Industry in Q2 2023

In Q2 2023, the non-ferrous metals sector achieved a total revenue of 975.59 billion yuan, a year-on-year increase of 2.4%. The net profit attributable to shareholders reached 35.33 billion yuan, a year-on-year decrease of 41.1%. Among the non-ferrous metals sub-sectors, only the gold, silver, and platinum sectors showed a year-on-year growth in net profit. Turning to the steel industry, in...

4. Performance of Steel Industry in H1 2023

In H1 2023, the steel industry achieved a total revenue of 1.2 trillion yuan, a year-on-year decrease of 7.5%. The net profit attributable to shareholders was 14.27 billion yuan, a decrease of 65.2% compared to the previous year. In Q2 2023, the steel industry achieved a total revenue of 619.55 billion yuan...

5. Decreasing Gross Margin and Crude Steel Output

From July to August 2023, the overall gross margin of the steel industry gradually declined, leading to a monthly decrease in daily crude steel output to 2.7874 million tons, reaching a new low for the year. On October 7th, the Yunnan Iron and Steel Association issued a notice regarding the control measures for steel enterprises in...

6. Challenging Market Environment for Steel Companies

In this period, with weakening demand and the unfulfilled expectation of "stable growth" due to the resumption of work in June, the price of rebar steel fell by 19%. The significant drop in steel prices led to widespread losses for steel companies, resulting in the steel industry's underperforming the overall market by 13%. From August to November...

7. Introduction to the Steel Industry

The steel industry is a crucial and irreplaceable core industry in the entire industrial sector. It is a typical midstream processing industry in traditional cyclical sectors, with upstream resources such as iron ore and coke. Compared to most companies' optimistic outlook for the future steel market, Shougang Corporation believes that in 2023, global economic growth will slow down due to factors such as inflation and geopolitics, and the economic trends of major economies will diverge. The economic growth of China will gradually increase...

8. Top Performing Stocks in the Steel Industry

Based on the trend selection system and financial report analysis tools, as of Q3 2023, the top-ranked stocks in terms of revenue growth in the steel industry are Huamin Holdings, with a growth rate of 272.51%

Taijia Corporation, ranked second with a growth rate of 173.21%

and He...