According to statistics from Jiemian News, as of February 1, a total of 18 listed steel companies had disclosed performance forecasts, of which 12 suffered losses, accounting for more than 60%. The total losses of the above 12 companies are expected to be close to 15 billion yuan.

In 2022, 11 of these 18 listed steel companies will suffer losses, with total losses exceeding 16.2 billion yuan.

Anshan Iron and Steel Co., Ltd. (000898.SZ) became the listed steel company with the largest loss last year, with an estimated net loss of 3.25 billion yuan. It will achieve a net profit of 100 million yuan in 2022. In the first three quarters of last year, Anshan Iron and Steel Co., Ltd. also ranked first in the loss list of domestic listed steel companies, with a loss of 2.11 billion yuan in the same period.

Bengang Steel Plate (000761.SZ) and Chongqing Iron and Steel (601005.SH) ranked second and third on the loss list of listed steel companies in 2023, with losses of 1.75 billion yuan and 1.59 billion yuan respectively.

Among the 12 loss-making steel companies, 8 have suffered losses for two consecutive years. Among them, the losses of three steel companies including Bengang Steel Plate and Chongqing Iron and Steel further expanded compared with last year, while the losses of five steel companies including Anyang Iron and Steel (600569.SH) narrowed.

A total of 4 listed steel companies turned from profits to losses last year. In addition to the loss-making Wang Angang Co., three listed steel companies including Taigang Stainless Steel (000825.SZ) also experienced a decline in performance.

The above-mentioned steel companies all gave similar explanations for their annual performance losses. In 2023, the overall steel industry will show strong supply and weak demand. Due to the double squeeze of low steel prices and continued high prices of raw materials and fuels such as iron ore, the profit margins of steel companies have narrowed.

Domestic steel prices have fallen sharply since the second half of 2022. China's steel price index hit a high of 140 points in mid-2022 and dropped to 113 points at the end of last year, a drop of nearly 20%. The index is released by the China Iron and Steel Industry Association (hereinafter referred to as the China Iron and Steel Association).

In terms of raw materials, the Platts Iron Ore Index rose from 117 points at the beginning of last year to 140.5 points at the end of the year, an increase of 20%.

According to data released by the China Iron and Steel Association in January this year, in the first 11 months of last year, the total profits of key member steel companies of the China Iron and Steel Association were 78.8 billion yuan, a year-on-year decrease of 23.92%, and losses exceeded 40%.

Among the 18 listed steel companies counted by Jiemian News, 6 still achieved profitability last year.

Baosteel Co., Ltd. (600019.SH) ranks first in terms of profit scale. The company is also the largest listed steel company in the country. In 2023, Baosteel Co., Ltd. is expected to make a net profit of 12 billion yuan last year, a decrease of 1.48% from 12.1 billion yuan in 2022; the revenue scale also dropped by 6% to 346.9 billion yuan.

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