Steel stocks declined in the afternoon. As of press release, China Iron and Steel (00893) fell 18.87% to HK$0.086; Chongqing Iron and Steel (01053) fell 4.35% to HK$0.66; Angang Steel (00347) fell 3.33% to HK$1.45; and Ma On Shan Steel (00323) fell 3.15% to HK$1.23.
The Zhitong Finance App learned that steel stocks declined in the afternoon. As of press release, China Iron and Titanium (00893) fell 18.87% to HK$0.086; Chongqing Iron & Steel (01053) fell 4.35% to HK$0.66; Angang Steel (00347) fell 3.33% to HK$1.45; and Maanshan Iron & Steel (00323) fell 3.15% to HK$1.23.
According to the news, the China Iron and Steel Association revealed that data released by the National Bureau of Statistics showed that in April, crude steel production was 85.94 million tons, down 7.2% from the previous year. From January to April, China's crude steel production was 343.67 million tons, a year-on-year decrease of 3.0%.
Haitong International released a research report saying that the net export volume equivalent to crude steel caliber in 2024Q1 was about 24.98 million tons, a year-on-year net increase of 6.12 million tons, a year-on-year growth rate of 32.44%. Net exports greatly absorbed the pressure on domestic production capacity. Domestic steel companies have poor profits, forcing steel companies to seek foreign exports. Domestic crude steel demand was estimated using crude steel production and net exports. The results showed that domestic crude steel consumption fell by about 4.73% in 2024Q1. Furthermore, judging from the steel sector (Shenwan) PB trend over the past 24 years, the current steel sector PB valuation is already in the bottom area.