Can the profitability of steel enterprises continue to improve?

From the perspective of the foreign environment, the global economy is still facing the risk of severe inflation and economic recession. In September, Europe and the United States and other countries and regions are expected to raise interest rates. The tightening of global monetary policy has kept the international capital market and commodity market under pressure.
From the perspective of the domestic environment, China’s economy was sluggish in August, and various economic indicators slowed down marginally. At present, the country’s policy of stabilizing growth has been further intensified, the weather conditions have improved, and the growth has been stabilized, which is expected to drive relevant indicators to improve in September.
(To learn more about the impact of specific steel products, such as 150*150mm h beam steel, you can feel free to contact us)
From the perspective of the supply side, in August, steel production was affected by both profit recovery and insufficient downstream demand, showing a trend of gradual recovery under pressure. It is estimated that the daily output of crude steel in China may be around 2.65 million tons, and it may recover to 2.65 million tons in September. The level of about 2.7 million tons, due to the low base in the same period last year, rebounded for the first time in September or this year.
From the demand side, with the improvement of climatic conditions in September, it is more suitable for building construction. With the support of a number of funds from the national steady growth policy and the approval of mature basic projects for the start of construction, the development of infrastructure investment will drive the demand for construction steel to have a certain room for improvement. At the same time, the demand for manufacturing steel will continue to recover under pressure.
(If you want to know more about the industry news on carbon steel h beam, you can contact us at any time)
On the whole, the domestic steel market will still face the impact of global inflation and interest rate hikes, supply chain, year-on-year rebound, seasonal demand expectations and other factors; Performance may vary.
(If you want to get the price of specific steel products, such as hot rolled steel h-beams, you can contact us for quotation at any time)
From the cost side, the decline in the cost side in the early stage has slowed down and is showing a gradual recovery trend. The domestic steel market has rebounded slightly. It is expected that the profit performance of steel enterprises in September is average, and the room for improvement is limited.