SMM Network News: from January to May, the iron and steel industry gradually got rid of the impact of the epidemic, production and sales basically returned to normal, and maintained a stable operation as a whole. Affected by the double squeeze of falling steel prices and rising imported iron ore prices, the economic benefits of the whole industry have declined greatly.

First, output remains high. According to the National Bureau of Statistics, in May, the national output of pig iron, crude steel and steel was 77.32 million tons, 92.27 million tons and 114.53 million tons respectively, up 2.4%, 4.2% and 6.2% respectively over the same period last year. From January to May, the national output of pig iron, crude steel and steel was 360 million tons, 410 million tons and 490 million tons respectively, up 1.5%, 1.9% and 1.2% respectively over the same period last year.

Second, steel prices continue to fall. In May, China's steel price index averaged 99.8 points, down 10.8% from a year earlier. From January to May, China's steel price index averaged 100.3 points, down 8.3% from the same period last year, or 2.6% more than in the first quarter.

Third, steel inventory continues to decline. According to the statistics of the China Iron and Steel Association, in late May, the steel inventory of iron and steel enterprises was 13.28 million tons, down 8.13 million tons or 38.0% from the peak in early March. The social inventory of five major varieties of steel in 20 cities is 13.12 million tons, a decrease of 7.09 million tons, or 35.1%, compared with the peak in early March, showing a downward trend for 80 years in a row.

Fourth, the export situation is still grim. According to statistics from the General Administration of Customs, in May, the country exported a total of 4.401 million tons of steel, down 23.4 percent from the same period last year, and imported 1.28 million tons of steel, an increase of 30.3 percent over the same period last year. From January to May, a total of 25.002 million tons of steel were exported, down 14.0 percent from the same period last year, while imports of steel were 5.464 million tons, up 12.0 percent from the same period last year.

Fifth, iron ore prices continue to rise. In May, China's iron ore price composite index averaged 335.6 points, up 8.6 per cent from the previous month, while the average imported iron ore price index was 339.0 points, up 10.1 per cent from the previous month. From January to May, China's iron ore composite index averaged 325.2 points, up 4.3 per cent from a year earlier, while the average imported iron ore price index was 326.3 points, up 2.0 per cent from a year earlier.

Sixth, the economic benefits have dropped sharply. According to the National Bureau of Statistics, in May, the operating income of the ferrous metal metallurgy and Calendering industry was 604.65 billion yuan, down 0.9 percent from the same period last year, and the realized profit was 18.7 billion yuan, down 50.6 percent from the same period last year. From January to May, the operating income of ferrous metal metallurgy and Calendering processing industry was 2.54695 trillion yuan, down 6.0% from the same period last year, and the total profit was 49.33 billion yuan, down 57.2% from the same period last year.

Seventh, the mining and dressing industry of ferrous metal ores is outstanding. According to the data of 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, an increase of 1.0% over the same period last year, and the total profit was 10.18 billion yuan, an increase of 20.9% over the same period last year, an increase of 68.7% over the first quarter.

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