In the 25 listed steel companies in China that have already released their projected performance for 2024, only 2 are expected to see an increase in performance. According to data monitoring by Chinese data service provider Wind, as of January 24, 2025, there are a total of 45 A-share steel companies in China. These companies cover various segments of steel production, including iron and steel raw materials, special steel, and general steel.
Reported on January 30th by the “Huaxia Times,” among the 25 listed steel companies that have already announced their projected performance for 2024, 16 are expected to have a net profit attributable to the parent company, with 4 of them transitioning from profit to loss. 12 companies continue to incur losses, with over half of the companies failing to achieve profitability. Among the 25 companies, 9 have achieved profits, but 7 out of the 9 profitable companies have seen a decline in net profit attributable to the parent company.
The data indicates that the losses in the steel industry are gradually expanding. Companies such as Hangang, Gushen, Daye, and Zhongnan have shifted from a profitable state in 2023 to a loss-making state in 2024. Zhongnan is expected to have a net profit attributable to the parent company of -1.1 billion yuan to -1.3 billion yuan compared to a profit of 49.03 million yuan in the same period last year. Hangang is expected to have a net profit attributable to the parent company of -630 million yuan, a significant decrease from the 182.23 million yuan profit in the previous year.
Additionally, Hualing Steel is expected to achieve a net profit attributable to the parent company of 1.7 billion yuan to 2.3 billion yuan, but it will decline by 55% to 67% compared to the previous year. Xingang Steel expects a net profit attributable to the parent company of 23 million yuan to 33.5 million yuan, representing a drastic decline of up to 93.26% to 95.37%.
Among the companies experiencing continued losses, only Liugang and Taisteel’s losses have decreased. Xining Special Steel, Sansteel Mingguang, Linggang, Bayi Iron & Steel, Shandong Iron & Steel, Chongqing Iron & Steel, Anyang Iron & Steel, Jiugang Hongxing, and Angang have all seen their losses expand further. Chongqing Iron & Steel is expected to incur a net profit attributable to the parent company of a staggering 3.253 billion yuan, compared to 1.494 billion yuan in losses in 2023. With this, Chongqing Iron & Steel has accumulated losses of over 5.7 billion yuan in the past three years. The expected losses for Shandong Iron & Steel, Anyang Iron & Steel, and Jiugang Hongxing all exceed 2 billion yuan, while Angang’s expected losses amount to a whopping 7.109 billion yuan, surpassing 3.254 billion yuan in losses in 2023, totaling over 10 billion yuan in losses over two years.
Regarding the reasons for the losses, Chongqing Iron & Steel believes it is primarily due to the current situation of “high output, high costs, high inventory, low demand, low prices, low efficiency” in the industry. Bai Wenxi, Vice Chairman of the China Enterprise Capital Federation, analyzed that downstream industries such as real estate and construction have low economic activity, the demand for steel in the market is weak, and the steel industry still faces a situation of “high output, high inventory.” Some companies lower prices to compete for market share, and while upstream raw material prices have fallen to some extent, the decline is relatively limited, squeezing the profit margins of steel companies.