Looking forward to steel pipe market in 2019 according to 2018 performance

According to the listed steel pipe companies, they announced the results that the performance of the steel pipe market in 2018 is quite excellent. The earnings of steel pipe industry ushered in a peak. Industry insiders believe that in the end of the real estate cycle, the decline in consumption of cars, appliances will continue. The steel industry has had its ups and downs in 2018.Take the local thread price in Shanghai as an example. In march, there was an extreme situation that the monthly price dropped by more than 600 yuan/ton, and then it climbed by 1200 yuan/ton and reached the high of the year in October. From the final results, steel companies still had a good year.

In 2018, the net profit attributable to shareholders of the listed company is expected to increase by 1.785 billion yuan to 2.088 billion yuan year-on-year, and increase by 67.46% to 78.91% year-on-year. Baosteel's net profit is expected to rise by 1.5 billion yuan to 2.3 billion yuan, up 8 percent to 12 percent year-on-year. Based on this data, baosteel's annual net profit for 2018 will exceed 21 billion yuan.

In 2018, the outstanding performance of hollow section manufacturers mainly lies in the good market environment provided by the supply-side reform. Under the background of tight balance, both quantity and price rise. In addition, about 50 million tons of production capacity of new iron ore will be added in 2018. The price of iron ore, the main raw material, fluctuates, making the cost side pressure of steel mills less. From the market situation, the overall performance of the steel sector in 2018 is not good. Compared with the tight balance between supply and demand for cold rolled steel pipe in 2018, the supply in 2019 will slightly increase and the growth of demand will slightly slow down, which will weaken the support for prices.

In 2019, with the downward pressure on the economy, the overall marginal performance of steel supply and demand is weaker, and the overall profits of the steel industry will narrow. In the past three years, the steel industry has reduced 150 million tons of excess capacity and removed 140 million tons of "steel". The power of the steel mill significantly enhanced. At the same time, the real estate demand for square steel pipe is still at a relatively high level, and more efforts have been made to make up for the shortage of infrastructure, so as to support the construction steel from the demand.