第一财经·2025-07-19 14:58Core Viewpoint - The profitability of Chinese steel companies is significantly lower than that of Japanese steel companies, with the CEO of Nippon Steel highlighting the challenges faced by Chinese manufacturers due to low pricing strategies [1][2]. Financial Performance Comparison - In 2024, Nippon Steel's net profit was 350.2 billion yen (approximately 16.9 billion RMB), while the top five Chinese steel companies had net profits of 7.362 billion RMB (Baowu Steel), 5.126 billion RMB (CITIC Special Steel), 2.261 billion RMB (Nanjing Steel), 2.032 billion RMB (Hualing Steel), and 1.49 billion RMB (Jiuli Special Materials) [1][2]. - The combined net profit of the top four Chinese steel companies in 2024 was less than that of Nippon Steel alone [2]. Industry Challenges - The Chinese steel industry is facing overcapacity, price competition, and increasing technical standards, leading to a decline in profitability [2][6]. - In 2024, the total profit of key Chinese steel companies was 42.9 billion RMB, a year-on-year decrease of 50.3% [6][7]. - The apparent consumption of crude steel in China has decreased from 1.048 billion tons in 2020 to 892 million tons in 2024, indicating a significant drop in demand [8]. Export Dynamics - Despite increasing steel exports, the average export price has declined, with the volume of steel exports doubling from 53.67 million tons in 2020 to 111 million tons in 2024, while the average price fell from 847.2 USD/ton to 755 USD/ton [9][10]. - Trade protectionism against Chinese steel products is rising, with multiple anti-dumping investigations initiated by countries like Vietnam and South Korea [9][10]. Strategic Adjustments - Chinese steel companies are attempting to improve their competitiveness by focusing on high-end steel production and reducing costs through better management practices [13][14]. - The industry is urged to adopt a more flexible production mechanism to balance supply and demand, especially in light of declining domestic demand and increasing export challenges [15].