Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. China
  4. Shenzhen Stock Exchange
  5. Angang Steel Company Limited
  6. News
  7. Summary
    000898   CNE000000SQ4

ANGANG STEEL COMPANY LIMITED

(000898)
  Report
End-of-day quote. End-of-day quote Shenzhen Stock Exchange - 08/04
4.44 CNY   +3.74%
08/03H1 Profit of China's Top Steelmakers Soars 220%
MT
07/29China to Raise Steel Export Tariffs to Cut Crude Steel Output
MT
07/19MARKET CHATTER : China to Force Steel Producers to Cut Output, Capacity
MT
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Baosteel sees higher 2016 output as world reels from China's glut

03/31/2016 | 06:28am EDT

BEIJING/SHANGHAI (Reuters) - China's top listed steelmaker Baosteel (>> Baoshan Iron & Steel Co., Ltd.) expects output this year to rise about 20 percent, even as the country steps up efforts to slash a huge overcapacity that has boosted cheap exports and caused some producers elsewhere to shut.

BEIJING/SHANGHAI (Reuters) - China's top listed steelmaker Baosteel (>> Baoshan Iron & Steel Co., Ltd.) expects output this year to rise about 20 percent, even as the country steps up efforts to slash a huge overcapacity that has boosted cheap exports and caused some producers elsewhere to shut.

The announcement by Baoshan Iron and Steel Co Ltd, or Baosteel, comes a day after India's Tata Steel (>> Tata Steel Limited) put its British operations up for sale, blaming the move that leaves thousands of jobs at risk on a flood of cheap Chinese supplies.

China has been aggressively shipping out surplus steel and selling them, according to other producing nations, at unfairly low prices. Exports hit a record 112 million tonnes in 2015.

"Of course China is the epicentre where they're exporting at predatory pricing to almost all countries," Seshagiri Rao, joint managing director at India's JSW Steel Ltd (>> JSW Steel Limited) said on what was behind the distressed global steel industry.

China makes half of the world's steel and produced 803.8 million tonnes in 2015. That was almost eight times the output of Japan, the No. 2 producer, and nearly 20 times Germany's.

China's production capacity is far bigger, at 1.2 billion tonnes, and is expected to further increase this year, according to the China Iron and Steel Association.

Baosteel's huge Zhanjiang steel production base with an annual capacity of about 9 million tonnes and which it calls its "dream factory" goes into operation later this year, its board secretary Zhu Kebing said on Thursday.

Baosteel, the listed arm of China's No. 2 steel producer - the Shanghai-based Baosteel Group, is likely to produce 27.1 million tonnes of crude steel this year versus 22.6 million tonnes in 2015, Zhu said.

"As a result of the completion of main production lines at the Zhanjiang project in 2016, the scale of the company's output will show an increase," he said.

WEAK STEEL PRICES HIT EARNINGS

But Zhu said Chinese steel prices, currently near decade-lows, are expected to remain weak.Last year marked the first drop in China's steel output since 1981 as producers responded to shrinking domestic demand in an economy that grew at its slowest pace in 25 years.

Because Chinese mills can sell their products cheap, exports rose, leading to complaints of dumping from other countries.

In February, European Union regulators opened three anti-dumping investigations into Chinese steel products and imposed new duties on imports.

Beijing has said anti-dumping measures to limit its exports will not address trade tensions in the sector, with authorities later blaming the pains of the global steel industry to a weak economy and shrinking competitiveness.

"Today Chinese steel companies, for every tonne of steel they export, they lose $102 per tonne," said JSW's Rao, citing industry data. China's steel exports eased only 1.3 percent over January-February from a year earlier.

The plunge in steel prices has hit producers' earnings. Baosteel posted an 82.5 percent slump in 2015 net profit to 1.013 billion yuan ($156.70 million), while others such as Maanshan Iron and Steel (>> Maanshan Iron & Steel Co Ltd), Hunan Valin Steel (>> Hunan Valin Steel Co., Ltd.) and Angang Steel Co (>> Angang Steel Company Limited), also saw losses.

With China's steel capacity surplus at around 400 million tonnes and average utilisation rates under 70 percent, Beijing is aiming to shut around 100-150 million tonnes of capacity in the next five years.

Local governments are now working on how to divide closure targets among producers, Baosteel's Zhu said.

"Looking over the long term, China's steel demand has already hit a peak and some capacity needs to be withdrawn from the market, or merged and restructured, and this will benefit the company by raising our market value," he added.

($1 = 6.4644 Chinese yuan)

(Writing and additional reporting by Manolo Serapio Jr in Manila, reporting by Ruby Lian in Shanghai and David Stanway in Beijing; Editing by Himani Sarkar)

By David Stanway and Ruby Lian


ę Reuters 2016
Stocks mentioned in the article
ChangeLast1st jan.
AIMING INC. -3.45% 336 End-of-day quote.-19.62%
ANGANG STEEL COMPANY LIMITED 3.74% 4.44 End-of-day quote.46.05%
BAOSHAN IRON & STEEL CO., LTD. 3.07% 7.38 End-of-day quote.24.03%
BASE CO., LTD. -2.21% 4640 End-of-day quote.-24.55%
BASE, INC. -0.32% 1247 End-of-day quote.-36.12%
HUNAN VALIN STEEL CO., LTD. 6.59% 7.12 End-of-day quote.48.95%
MAANSHAN IRON & STEEL COMPANY LIMITED 6.65% 4.33 End-of-day quote.62.78%
NL ANTILLIAN GUILDER / NL ANTILLIAN GUILDER (ANG/ANG) 0.00% 1 Delayed Quote.0.00%
TATA STEEL LIMITED 0.80% 1426 Delayed Quote.120.03%
US DOLLAR / CHINESE YUAN RENMINBI (USD/CNY) -0.07% 6.4609 Delayed Quote.-0.84%
All news about ANGANG STEEL COMPANY LIMITED
08/03H1 Profit of China's Top Steelmakers Soars 220%
MT
07/29China to Raise Steel Export Tariffs to Cut Crude Steel Output
MT
07/19MARKET CHATTER : China to Force Steel Producers to Cut Output, Capacity
MT
07/18Baowu Becomes World's Largest Steelmaker, Toppling ArcelorMittal
MT
06/21ANGANG STEEL : Projects 860% Increase in H1 Attributable Profit
MT
06/18Angang Steel Company Limited Provides Earnings Guidance for the Six Months En..
CI
06/17Angang Steel Company Limited Announces Final Cash Dividend Plan to Be Impleme..
CI
06/16Angang Steel Company Limited Announces Executive Changes
CI
06/08ANGANG STEEL : Cuts Conversion Price of Convertible Bonds Due 2023
MT
05/31ANGANG STEEL COMPANY LIMITED : Ex-dividend day for final dividend
FA
More news
Financials
Sales 2021 121 B 18 783 M 18 783 M
Net income 2021 6 571 M 1 017 M 1 017 M
Net Debt 2021 4 877 M 754 M 754 M
P/E ratio 2021 5,99x
Yield 2021 5,48%
Capitalization 41 037 M 6 346 M 6 348 M
EV / Sales 2021 0,38x
EV / Sales 2022 0,36x
Nbr of Employees 31 512
Free-Float 30,9%
Chart ANGANG STEEL COMPANY LIMITED
Duration : Period :
Angang Steel Company Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ANGANG STEEL COMPANY LIMITED
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 15
Last Close Price 4,09 CNY
Average target price 5,68 CNY
Spread / Average Target 38,9%
EPS Revisions
Managers and Directors
Yi Dong Wang Chairman
Tie Jian Mu Chairman-Supervisory Board
Chang Li Feng Independent Non-Executive Director
Jian Hua Wang Independent Non-Executive Director
Wang Lin Wang Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
ANGANG STEEL COMPANY LIMITED46.05%6 346
ARCELORMITTAL55.43%35 183
NUCOR CORPORATION97.22%31 328
TATA STEEL LIMITED120.03%22 789
POSCO27.39%22 416
NIPPON STEEL CORPORATION53.31%16 662