The Steel Industry Is Generally Stable And Has Small Fluctuations

In the first half of 2019, China’s steel industry was generally stable, but there was a sharp increase in output, a sharp rise in imported iron ore prices, and a significant decline in industry profits.

1, the output ( For example stainless steel tubes) has increased substantially. According to the National Bureau of Statistics, the production of pig iron, crude steel and steel in the first half of this year was 404 million tons, 492 million tons and 587 million tons respectively, up 7.9%, 9.9% and 11.4% respectively.

In the first half of the year, the average daily output of crude steel was 2.72 million tons, which was 230,000 tons higher than that of the same period of last year. From April to June, the monthly crude steel output was 85.03 million tons, 89.09 million tons and 87.53 million tons, respectively, an increase of 12.7%. 10.0% and 10.0%, both hit a record high in the same period.

2, the price has stabilized and lowered the average price index of steel products in the first half of the year by 109.5 points, down 4.5% year-on-year; long products outperformed sheet metal, the average price index of long products was 115.8 points, down 2.5% year-on-year, and the average price index of sheets was 105.6 points. Declined by 6.3%. As of the end of June, China’s steel comprehensive price index was 109.5 points, down 5.5% year-on-year. Among them, the price of rebar was 4002 yuan/ton, down 1.3% year-on-year, and the price of hot rolled coil was 3976 yuan/ton, down 9.3% year-on-year.

3. Iron ore prices rose sharply As of the end of June, China’s iron ore price index was 398.32 points, up 67.4% year-on-year, up 56.8% from the beginning of the year; the import iron ore price index was 410.18 points, up 71.1% year-on-year. 60.0% increase; domestic iron ore price index was 335.55 points, up 48.4% year-on-year, up 40.1% from the beginning of the year. On June 28, the price of imported iron ore 62% grade dry-based powder ore was 110.79 US dollars/ton, which was up year-on-year. 71.1%, up 41.6 US dollars / ton from the beginning of the year, an increase of 60.0%.

4, the industry’s profits have dropped significantly. From January to May, after the profit and loss of China’s steel industry was offset, the profit reached 139.93 billion yuan, down 16.6% year-on-year, but the decline was narrower than the beginning of the year. The 92 key large and medium-sized enterprises counted by the China Iron and Steel Association have achieved a profit of 85.5 billion yuan, down 18.2% year-on-year.

5. Both imports and exports decreased According to the data of the General Administration of Customs, steel exports in the first quarter fell sharply by 12.6% in the first quarter.

In the first half of the year, China’s total exports of steel were 34.399 million tons, down 2.6% year-on-year; export value 1902.5 100 million yuan, down 2.3% year-on-year, China imported 5.823 million tons of steel, down 12.7% year-on-year; the import value was 47.17 billion yuan, down 12.3% year-on-year.