Positive policies boost confidence, and the steel industry is gradually recovering
Date:2024-10-16View:54Tags:Stainless steel pipe,ERW steel pipe,Sprial steel pipe
Recently, with the property market and the stock market both welcoming favorable policies, the steel sector, which is closely related to the real estate market, has also continued to rise sharply.
From September 24 to October 9, the Shanghai Composite Index recorded a cumulative increase of nearly 18%, and the steel sector was at the forefront of the rebound with a 21% increase.
In the spot market, steel prices have risen rapidly. Public data show that steel prices in Tangshan, Hangzhou and other places have risen, among which rebar prices rose by double digits from September 24 to October 9.
According to the report of the Steel Logistics Professional Committee of China Federation of Logistics and Purchasing, the domestic steel industry PMI in September 2024 was 49%, an increase of 8.6 percentage points from the previous month, ending the trend of a month-on-month decline for three consecutive months. The increase was relatively obvious, and the steel industry bottomed out and rebounded.
Many people in the steel industry told the reporter of China Economic Weekly that in late September, the domestic real estate policy was optimized, and the second-hand housing market is expected to pick up, which will play a certain supporting role in the overall real estate market in the future, and will also inevitably play a boosting role in stabilizing steel demand.
Macroeconomic policies are constantly favorable,
The expectation of a rebound in the steel industry is approaching
After a long period of "bottoming out", steel prices have put pressure on the profits of steel companies. However, at the end of September, the overall market sentiment rose sharply.
On September 26, the Political Bureau of the CPC Central Committee held a meeting, which emphasized the need to promote the stabilization of the real estate market, strictly control the increase in commercial housing construction, optimize the stock, and improve the quality, increase the loan issuance of "white list" projects, and support the revitalization of idle land. We must respond to the concerns of the people, adjust the housing purchase restriction policy, reduce the interest rate of existing mortgage loans, and speed up the improvement of land, fiscal and taxation, and financial policies to promote the construction of a new model of real estate development.
These arrangements have given steel companies, steel traders, etc. better expectations for the use of steel in real estate in the future. Pan Yixin, head of a steel company in central China, said frankly: "After all, steel is a bulk commodity with a long upstream and downstream chain. The industry is affected by one hair. As the macroeconomic fundamentals improve, the demand for the steel industry will also pick up."
In late September, the China Federation of Logistics and Purchasing Steel Logistics Professional Committee released a report showing that the demand for the steel market has improved, steel mill production has rebounded, the rate of decline in raw material prices has slowed down, and steel prices have rebounded. The report predicts that market demand will continue to pick up in October, steel production will continue to rise, and raw material and steel prices may both rise.
Before the steel sector market heated up, it also experienced a wave of market downturns. Since the beginning of 2024, affected by the continued downturn in the steel industry, the operating pressure of steel companies has further increased, and corporate profit performance and operating levels have diverged.
According to Mysteel statistics, 36 listed steel companies announced their performance in the first half of 2024, with a total operating income of 1016.063 billion yuan and a total net profit of 2.944 billion yuan.
