SMM News: first, the production situation of the iron and steel industry

According to the National Bureau of Statistics, China produced 77.315 million tons of pig iron in May 2020, an increase of 2.4 percent over the same period last year and 7.4 percent month-on-month growth of 7.4 percent. From January to May, China produced a total of 355.986 million tons of pig iron, an increase of 1.5 percent over the same period last year.

Crude steel production in May was 92.267 million tons, an increase of 4.2 percent over the same period last year, and 8.5 percent month-on-month growth. From January to May, crude steel production was 411.751 million tons, an increase of 1.9 percent over the same period last year.

Steel production in May was 114.527 million tons, an increase of 6.2 percent over the same period last year, and an increase of 7.0 percent month-on-month. From January to May, steel production was 488.191 million tons, an increase of 1.2 percent over the same period last year.

II. National Iron Ore production

According to the National Bureau of Statistics, large-scale enterprises produced 74.642 million tons of iron ore in May 2020, an increase of 8.1% over the same period last year and 0.4% month-on-month growth of 0.4%. From January to May, 336.967 million tons of iron ore were produced, up 4.1% from a year earlier. According to the China Metallurgical Mining Enterprises Association, the national iron concentrate output in May was 23.58 million tons, an increase of 1.8 percent over the same period last year, and an increase of 4.1 percent month-on-month. From January to May, 105.34 million tons of iron concentrate were produced, down 1.0 percent from the same period last year.

III. Iron ore imports

According to the General Administration of Customs, iron ore imports in May 2020 were 87.026 million tons, up 3.9 percent from the same period last year, down 9.0 percent from the previous month. The average import price was 87.44 yuan per ton, down 2.1 percent from the previous month. From January to May, imports of iron ore were 445.306 million tons, up 5.1% from the same period last year. The average import price was US $89.98 / ton, up 3.3% from the same period last year.

IV. Supply and demand of iron ore

From January to May, China produced 355.986 million tons of pig iron, an increase of 1.5 percent over the same period last year; domestic iron ore output of 336.967 million tons, an increase of 4.1 percent over the same period last year; and iron ore imports of 445.306 million tons, an increase of 5.1 percent over the same period last year. Iron ore supply growth is slightly greater than demand growth. At the end of May, the inventory of imported minerals at ports across the country fell to 107.84 million tons, a decrease of 16.14 million tons compared with the same period last year and 6.14 million tons lower than at the end of April. Judging from the above data, the growth of iron ore supply is slightly larger than that of demand at the present stage, and the tight balance between supply and demand in the market shows signs of easing.

V. Iron ore prices

In May, the average monthly tax price of domestic iron concentrate (62%) was 698.51 yuan / ton, an increase of 8.87 yuan / ton, or 1.3%, over the previous month. The lowest price of the month was 685.27 yuan / ton at the beginning of the month, and the highest price was 715.54 yuan / ton at the end of the month, which rose 4.4% at the end of the month compared with the beginning of the month. The average tax price rose 6.5% over the same month last year. The cumulative average tax price from January to May was 702.05 yuan per ton, an increase of 64.79 yuan per ton over the same period last year, or 10.1 percent.

In May, the average monthly CIF price of imported powdered ore was 91.57 US dollars per ton, up 8.39 US dollars per ton, or 10.1 per cent, over the previous month. The lowest price for the month was $82.91 / ton at the beginning of the month, and the highest price was $98.95 / ton at the end of the month, with a maximum monthly increase of 19.3%. The average CIF price dropped 6.2% compared with the same month last year. The cumulative average price of imported powdered ore from January to May was 87.83 US dollars per ton, up 1.43 US dollars per ton from the same period last year, or 1.7 percent.

VI. Investment in fixed assets of ferrous metal mining and dressing industry

From January to May, the growth rate of fixed asset investment in the mining industry dropped by 8.7%. Among them, the growth rate of investment in the ferrous metal mining and dressing industry fell 4.7 percent, an increase of 3.5 percentage points over the same period last year, and 8.3 percentage points lower than that in January-April; private investment in the ferrous metal mining and dressing industry increased by 13 percent, and the growth rate increased by 22 percentage points compared with the same period last year. Generally speaking, from January to May, the investment willingness of ferrous metal mining and dressing industry is not strong, and the investment confidence is still insufficient.

VII. main financial indicators of ferrous metal mining and dressing industry

According to data from the National Bureau of Statistics, from January to May, the operating income of the ferrous metal mining and dressing industry was 135.91 billion yuan, up 1.0 percent from the same period last year; the operating cost was 109.19 billion yuan, up 1.4 percent from the same period last year; and the total profit was 10.18 billion yuan, up 20.9 percent from the same period last year.

VIII. Focus on monitoring the operation of enterprises

1. Product output

In May 2020, large and medium-sized mining enterprises mainly monitored by the China Metallurgical Mining Enterprises Association produced 31.1806 million tons of iron ore, accounting for 41.8% of the country's total output. Monthly production increased by 3.3% over the same period last year. From January to May, the total production of iron ore was 150.01 million tons, an increase of 5.5% over the same period last year. The monthly increase in iron ore output of key enterprises is 4.8 percentage points lower than that of the national output, and the cumulative increase of iron ore output from January to May is 1.4 percentage points higher than that of the national output. In May, large and medium-sized mining enterprises mainly monitored by the association produced 9.872 million tons of iron concentrate, an increase of 3.9 percent over the same period last year. From January to May, 47.094 million tons of iron concentrate were produced, an increase of 3 percent over the same period last year.

2. Operating condition

In May, the main business income of large and medium-sized mining enterprises monitored by the association was 6.686 billion yuan, compared with 6.348 billion yuan in the same period last year, an increase of 5.3 percent over the same period last year, and profits totaled 1.482 billion yuan, down 24.8 percent from 1.971 billion yuan in the same period last year. The main business income of large and medium-sized mining enterprises mainly monitored from January to May was 33.443 billion yuan, an increase of 5.2% over the same period last year, and the total profit was 6.779 billion yuan, an increase of 20.2% over the same period last year.

3. Financial situation

(1) Financial expenses: in May, the financial expenses of large and medium-sized mining enterprises mainly monitored by the association were 276 million yuan, up 12.6% from 245 million yuan in the same period last year. 1.104 billion yuan from January to May, down 5.1% from 1.163 billion yuan in the same period last year. The cost of using funds decreased significantly compared with the previous year.

(2) Asset-liability ratio: at the end of May, the asset-liability ratio of large and medium-sized mining enterprises mainly monitored by the association was 48.5%, down 6 percentage points from the same period last year.

4. Cost status

At the end of May, the manufacturing cost of iron concentrate in large and medium-sized mining enterprises monitored by the association was 360.92 yuan / ton, an increase of 2.7% over the same period last year; the manufacturing cost of open-pit iron ore was 51.87 yuan / ton, an increase of 3.5% over the same period last year; and the manufacturing cost of underground iron ore was 95.99 yuan / ton, down 5.1% from the same period last year. The management fee in May was 710 million yuan, down 7.2% from the same period last year. From January to May, the management fee was 3.373 billion yuan, down 6.3% from the same period last year. The sales expenses in May were 91 million yuan, up 5.8% from the same period last year. From January to May, the sales expenses were 365 million yuan, down 11.6% from the same period last year.

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