① reported that revenue fell by about 30% in the third quarter compared with the same period last year, and the main coking industry continued to lose money, and the profit mainly came from investment income; the company lost 615 million yuan in its main business in the first three quarters of ②, and the loss continued to increase, but under the support of the decline in raw material costs and the rebound in prices of major chemical products in the third quarter, the loss improved compared with the second quarter.
Financial Associated Press, October 23 (Reporter Zhang Liangde)The downturn of the downstream iron and steel industry, the high operation of the upstream coal market, the poor operation of the coking industry this year, Shanxi Coking (600740.SH) three quarterly report income dropped by about 30% over the same period last year, the company's main coking business continues to lose money, the company's profits mainly come from the investment income of Huajin of China Coal.
This evening, Shanxi Coking and Chemical Company disclosed its results for three quarters. During the reporting period, the company achieved operating income of 6.517 billion yuan, down 30.67% from the same period last year. The net profit belonging to shareholders of listed companies was 1.281 billion yuan, down 52.68% from the same period last year.
It is worth noting that all the company's profits came from investment income, while the losses in its main business continued to expand. The company's main business loss in the first three quarters was 615 million yuan, which was higher than the loss of 506 million yuan in the first half of the year, but narrowed slightly compared with the first quarter.
Judging from the company's operating data in the second and third quarter, the decline in raw material costs and the rebound in the prices of major chemical products in the third quarter are the main reasons for the narrowing of losses in the main business in the third quarter.
Among them, the average selling price of coke in the third quarter is basically close to that in the second quarter, only slightly decreasing by 20 yuan / ton, which is higher than the market price. The price of asphalt rose from 3677.26 yuan / ton to 4330.78 yuan / ton, industrial naphthalene from 4406.17 yuan / ton to 5355.23 yuan / ton, methanol from 1898.52 yuan / ton to 1924.30 yuan / ton, carbon black from 5772.95 yuan / ton to 6,479.06 yuan / ton, and pure benzene from 5962.58 yuan / ton to 6631.23 yuan / ton. The cost of washed coal decreased from 1570.18 yuan / ton in the second quarter to 1472.63 yuan / ton in the second quarter.
The return on investment in Huajin of China Coal has also declined compared with the same period last year. The investment income in the first three quarters was 2.426 billion yuan, while that of Q3 in the single quarter was 640 million yuan, down about 26.79 percent from 875 million yuan in the third quarter of last year. The main reason for the decline in investment income is that the price of coking coal fell sharply in the third quarter compared with the same period last year. Choice data show that the ex-factory price of coking coal in Handan in the third quarter of this year is about 500yuan / ton lower than the average price in the third quarter of last year.
Ex-factory price of coking coal in Handan area from 2022 to 2023 (data source: Choice)
At present, Shanxi Province has issued an "Emergency notice on doing a good job in shutting down 4.3m coke ovens" and has begun to promote the complete shutdown of 4.3m coke ovens. according to Mysteel data, if carried out as planned, Shanxi will phase out 18.24 million tons of 4.3m coking capacity in October. If other regions follow, it will help to increase the operating rate of the industry, balance market supply and demand, and enhance the profitability of coke enterprises.
Industry analysts believe that due to the poor market performance of the steel industry downstream of the coking industry, hot metal production may continue to decline, and coke demand may also be restrained to a certain extent, so it is uncertain whether the coking industry can quickly achieve profitability after the phase-out of 4.3-meter coke ovens, while the reduction in demand for raw fuel by downstream steel enterprises may also restrain coking coal prices.