SHANGHAI FABULOUS MATERIAL INC.
SHANGHAI FABULOUS MATERIAL INC.
NEWS
Operation of Iron and Steel Industry in the First Half of 2019
Operation of Iron and Steel Industry in the First Half of 2019
Operation of Iron and Steel Industry in the First Half of 2019
In the first half of the year, the iron and steel industry has been running smoothly on the whole. However, there are some problems, such as a large increase in output, a sharp rise in the price of imported iron ore, and a significant decline in the profits of the industry, which need to be paid close attention to.
First, the output has increased substantially. According to the data of the National Bureau of Statistics, the output 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, up by 7.9%, 9.9% and 11.4% respectively. The average daily output of crude steel in the first half of the year was 2.72 million tons, an increase of 230,000 tons over the same period last year. From April to June, the crude steel output in one month was 85.03 million tons, 89.09 million tons and 87.53 million tons, respectively, which increased by 12.7%, 10.0% and 10.0% over the same period of last year, all of which reached a record high in the same period.
2. Prices have declined steadily. In the first half of the year, the steel composite price index averaged 109.5 points, down 4.5% year-on-year; the performance of long timber was better than that of plate, the average price index of long timber was 115.8 points, down 2.5% year-on-year, and the average price index of plate was 105.6 points, down 6.3% year-on-year. By the end of June, China's steel composite price index was 109.5 points, down 5.5% year on year. Among them, the price of threaded steel is 4002 yuan/ton, down 1.3% year on year, and the price of hot rolled coil is 3976 yuan/ton, down 9.3% year on year.
3. The price of iron ore has risen sharply. By the end of June, China's iron ore price index was 398.32 points, up 67.4% year-on-year and 56.8% year-on-year. The imported iron ore price index was 410.18 points, up 71.1% year-on-year and 60.0% year-on-year. The domestic iron ore price index was 335.55 points, up 48.4% year-on-year and 40.1% year-on-year. On June 28, the CIF price of 62% grade dry-base powder ore imported directly from iron ore was 110.79 US dollars per ton, up 71.1% year-on-year and 41.6 US dollars per ton, up 60.0% from the beginning of the year.
4. Profit of the industry has declined significantly. From January to May, China's iron and steel industry realized a profit of 139.93 billion yuan, down 16.6% year on year, but the decline was narrower than at the beginning of the year. The profits of 92 key large and medium-sized enterprises according to the statistics of China Iron and Steel Industry Association reached 85.5 billion yuan, down 18.2% from the same period last year.
5. Both imports and exports declined. According to the General Administration of Customs, steel exports in the first quarter increased by 12.6% year-on-year, while steel exports in the second quarter fell sharply. In the first half of the year, China's total export of steel was 34.399 million tons, down by 2.6% year-on-year; the export amount was 190.25 billion yuan, down by 2.3% year-on-year. Over the same period, China imported 58.223 million tons of steel, down 12.7% year-on-year; the amount of imports was 47.17 billion yuan, down 12.3% year-on-year.
In the first half of the year, the iron and steel industry has been running smoothly on the whole. However, there are some problems, such as a large increase in output, a sharp rise in the price of imported iron ore, and a significant decline in the profits of the industry, which need to be paid close attention to.
First, the output has increased substantially. According to the data of the National Bureau of Statistics, the output 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, up by 7.9%, 9.9% and 11.4% respectively. The average daily output of crude steel in the first half of the year was 2.72 million tons, an increase of 230,000 tons over the same period last year. From April to June, the crude steel output in one month was 85.03 million tons, 89.09 million tons and 87.53 million tons, respectively, which increased by 12.7%, 10.0% and 10.0% over the same period of last year, all of which reached a record high in the same period.
2. Prices have declined steadily. In the first half of the year, the steel composite price index averaged 109.5 points, down 4.5% year-on-year; the performance of long timber was better than that of plate, the average price index of long timber was 115.8 points, down 2.5% year-on-year, and the average price index of plate was 105.6 points, down 6.3% year-on-year. By the end of June, China's steel composite price index was 109.5 points, down 5.5% year on year. Among them, the price of threaded steel is 4002 yuan/ton, down 1.3% year on year, and the price of hot rolled coil is 3976 yuan/ton, down 9.3% year on year.
3. The price of iron ore has risen sharply. By the end of June, China's iron ore price index was 398.32 points, up 67.4% year-on-year and 56.8% year-on-year. The imported iron ore price index was 410.18 points, up 71.1% year-on-year and 60.0% year-on-year. The domestic iron ore price index was 335.55 points, up 48.4% year-on-year and 40.1% year-on-year. On June 28, the CIF price of 62% grade dry-base powder ore imported directly from iron ore was 110.79 US dollars per ton, up 71.1% year-on-year and 41.6 US dollars per ton, up 60.0% from the beginning of the year.
4. Profit of the industry has declined significantly. From January to May, China's iron and steel industry realized a profit of 139.93 billion yuan, down 16.6% year on year, but the decline was narrower than at the beginning of the year. The profits of 92 key large and medium-sized enterprises according to the statistics of China Iron and Steel Industry Association reached 85.5 billion yuan, down 18.2% from the same period last year.
5. Both imports and exports declined. According to the General Administration of Customs, steel exports in the first quarter increased by 12.6% year-on-year, while steel exports in the second quarter fell sharply. In the first half of the year, China's total export of steel was 34.399 million tons, down by 2.6% year-on-year; the export amount was 190.25 billion yuan, down by 2.3% year-on-year. Over the same period, China imported 58.223 million tons of steel, down 12.7% year-on-year; the amount of imports was 47.17 billion yuan, down 12.3% year-on-year.