The same is the iron and steel enterprises, also restricted by the iron ore price factors, but the first quarter of the first quarter of the three major steel listed companies Baoshan Iron and Steel shares, Wuhan Iron and Steel shares, Anshan Iron and Steel shares of the performance is quite different.
A quarterly report by Anshan Iron and steel company showed that the company realized net profit of 71 million yuan in the first quarter of this year, a significant reduction of 93.82% from the same year, and the net profit of Wuhan Iron and steel company was 610 million yuan, a substantial increase of 111% over the same period. It may be around 10%.
Similar to Nangang's iron ore purchase mode, Nangang shares also increased in the first quarter of this year, achieving net profit of 271 million yuan, up 9.21% over the same period last year.
For the decline of first quarter results, Anshan Steel Group gave an explanation of &ldquo and &rdquo. The company said it was mainly due to the sharp rise in the price of raw fuel and increased the cost of the product. However, it is worth noting that the increase in the price of raw fuel such as iron ore and coking coal is not only a problem encountered by the shares of the Anshan Iron and steel company. In fact, this is a common problem facing the domestic steel enterprises.
Since domestic iron and steel enterprises are facing the same problem, the performance differences of the three companies in the first quarter of this year are so big, in addition to the different product structure of the three major companies, to a large extent, it is also attributable to the iron ore purchase model of three companies.
The iron ore of Wuhan Iron and steel company shares and Baoshan Iron and Steel shares mainly rely on imports, while the rate of self supply of iron ore in Anshan Iron and steel company is high, but nearly half of the iron ore in Anshan Iron and Steel Group is the domestic iron ore purchased from the Anshan Iron and steel group mineral company.
From the pricing model, after the annual long association pricing model was broken by the three largest mining company in the world, according to Deng Qilin, chairman of Wuhan Iron and steel company, the stock adopted quarterly pricing, monthly pricing, spot pricing and other modes to purchase iron ore. The ore of the group is adopted in the semi annual pricing model, not only that, but also the Anshan Iron and Steel Group has promised to give the share price preference of Anshan Iron and steel company on the highest level, which is 5% of the average price of the Chinese iron concentrate imported to the shore in the first half of the year.
According to the pricing principle of iron ore stock in Anshan Iron and steel company, the purchasing price of Anshan Iron and steel company in the first quarter of 2010 is based on the second half of 2009, while the price of international iron ore is low in the second half of 2009; the purchase price in the first quarter of 2011 is obtained on the basis of the second half of 2010, but the international iron mine in the second half of 2010. The price of stone is at a high point.
In the first quarter of this year, the price of iron ore has fallen relative to the four seasons of last year. Relatively speaking, the cost of steel plants using spot pricing is lower, while the cost of steel plants using semi annual pricing is higher. This means that if the financial situation of three companies in the first quarter of this year, the annual pricing and semi annual pricing model is not necessarily more conducive to the development of iron and steel enterprises.
In March 31st, the shares of Baosteel held in 2010, for the name of the long association and the index pricing model, He Wenbo, the chairman of Baoshan Iron and steel company, said that now the short-term pricing mechanism has advantages and disadvantages to Baosteel, such as the four seasons in 2008, 10 million tons of mine are all high price mines, and the high price mine is not allowed to digest. Yi.
In He Wenbo's view, if the price of the mine is rising and the price of steel is rising, the risk of the steel plant is not much, but the adjustment of the price of steel is lagging behind the adjustment of the price of the mine, and the turning point is often the first drop of the steel price and the re adjustment of the price of the mine.
However, the performance of the three steel mills in the first quarter of this year does not show that short-term pricing models such as spot pricing and quarterly pricing will certainly help the development of steel plants. Is the short-term pricing model or long-term pricing model conducive to iron and steel enterprises, we need to see what the future trend of iron ore prices is. If the price of iron ore is in the rising channel in the next few years, the long-term pricing model, such as annual and semi annual, is beneficial to iron and steel enterprises. If the price of iron ore is in the decline channel, the long-term pricing model is not conducive to the iron and steel enterprises, and the use of spot pricing model is more conducive to reducing the cost of purchasing.