WISCO’s net profit for the quarter decreased by 87.17% year-on-year – total profit dropped by 32.54% year-on-year last year

The same fluctuations in the steel industry in the first quarter of the year have also affected the performance of listed steel companies. Today, Wuhan Iron and Steel Co., Ltd. announced the 2008 annual report and the first quarter of 2009. After net profit fell by 20% year-on-year in 2008, it fell by 87.17% year-on-year in the first quarter of 2009. As the future of the steel market is still not optimistic, WISCO also expects the net profit of the semi-annual report will fall by more than 50% over the same period of last year.

According to the first quarterly report of Wuhan Iron and Steel, the company’s net profit in the first three months was 262 million yuan, a decrease of 87.17% from the same period of the previous year. The company’s operating revenue and total profit decreased due to the decrease in sales volume and the decrease in sales unit price.

The 2008 annual report of Wuhan Iron and Steel Co., Ltd. published today shows that the company’s net profit in 2008 was 5.889 billion yuan, a decrease of 20.48% over the same period of the previous year, and achieved an operating income of 73.3 billion yuan, an increase of 35.41% year-on-year, and a total profit of 6.35 billion yuan. The year-on-year decrease of 32.54%.

For the future market, Wuhan Iron and Steel Co., Ltd., which is mainly engaged in sheet metal production, believes that with the expansion of domestic production capacity in recent years, the current situation of excess sheet metal production capacity is worrying. Product competition has spread from low-end products to high-end products. In addition, the company is located within the company. Land and iron ore resources are imported in large quantities and logistics costs are high. As the gap between iron ore long-term agreement prices and spot prices has disappeared, the advantages of large enterprises in ore costs are not as good as before, and cost factors will restrict the company’s products market. Competitiveness.

Although steel stocks have risen recently, the quarterly reports of listed steel companies have been unsatisfactory. Last week, Bayi Iron & Steel once announced that the first quarter was expected to have a loss of RMB 100 million; Valin Steel also had a loss of RMB 380 million to RMB 3.9 billion in the first quarter; and Shougang had announced a net profit of RMB 73.56 million in the first quarter, a year-on-year drop of 62.91%; Steel plate net profit in the first quarter was 43.835 million yuan, which was 89.10% lower than the same period of last year.

Xia Ji, Director of Marketing Department of Anshan Iron and Steel Co., Ltd. pointed out at the recent "2009 China Northeast Steel Market Forum" that due to the prominent contradiction between supply and demand of steel, the situation of oversupply is irreversible in the short term, and the steel market operates at a low price for a long time. The possibility is relatively large; the orientation of the country’s macroeconomic control policies, and whether iron ore price negotiations are 40% or 50% in the end, or higher and lower price reductions, will have an impact on future steel prices and pass the cost. Reflected.