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Brief report on Economic Operation of Metallurgical Mining Industry in June 2020
Jul 31,2020 14:03CST
translation
Source:China Metallurgical Mining Enterprises Association Network
The content below was translated by Tencent automatically for reference.

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

According to data from the National Bureau of Statistics, China produced 76.635 million tons of pig iron in June, an increase of 4.1 percent over the same period last year, while it fell 0.9 percent month-on-month. From January to June, China produced 432.681 million tons of pig iron, an increase of 2.2 percent over the same period last year.

Crude steel production in June was 91.579 million tons, up 4.5% from the same period last year, while it was down 0.8% from January to June. Total crude steel production was 499.011 million tons, an increase of 1.4% over the same period last year.

Steel production in June was 115.851 million tons, an increase of 7.5 percent over the same period last year, and 1.2 percent month-on-month increase. From January to June, steel production totaled 605.836 million tons, an increase of 2.7 percent over the same period last year.

II. National Iron Ore production

According to the National Bureau of Statistics, China produced 78.317 million tons of iron ore in June, an increase of 8.4 percent over the same period last year, and an increase of 4.9 percent from January to June. 413.953 million tons of iron ore were produced from January to June, up 4.5 percent from a year earlier. According to the statistics of the China Metallurgical Mining Enterprises Association, the country produced 23.7711 million tons of iron concentrate in June, an increase of 2.7 percent over the same period last year, and a month-on-month increase of 0.8 percent. 129.108 million tons of iron concentrate were produced from January to June, down 0.3 percent from the same period last year.

III. Iron ore imports

According to the General Administration of Customs, China imported 101.682 million tons of iron ore in June, up 35.3 percent from the same period last year and 16.8 percent from the previous month. The average import price was 90.05US dollars per ton, up 3.0 per cent from the previous month, down 7.6 per cent from the same period last year. Imports of iron ore from January to June were 546.907 million tons, an increase of 9.6 percent over the same period last year.

IV. Supply and demand of iron ore

From January to June, the country produced 432.681 million tons of pig iron, an increase of 2.2 percent over the same period last year; domestic iron ore output of 413.953 million tons, an increase of 4.5 percent over the same period last year; and iron ore imports of 546.907 million tons, an increase of 9.6 percent over the same period last year. Iron ore supply growth is greater than demand growth. At the end of June, the inventory of imported minerals at ports across the country dropped to 107.81 million tons, a decrease of 7.84 million tons compared with the same period last year, which was basically unchanged from the end of May 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

According to China's iron ore price index (CIOPI), in June, the average monthly taxable price of domestic iron concentrate (62%) was 752.43 yuan / ton, up 53.92 yuan / ton, or 7.7%, from the previous month; and 6.7% higher than the average tax price in the same month last year. The lowest price of the month was 716.12 yuan / ton at the beginning of the month, and the highest price was 769.94 yuan / ton at the end of the month, up 7.5% from the beginning of the month. The cumulative average tax price from January to June was 711.18 yuan / ton, up 9.6% from the same period last year.

In June, the average monthly CIF price of imported fines was $100.77 / tonne, up $9.2 / tonne, or 10.05 per cent, from the previous month, and 3.4 per cent lower than the average CIF price in the same month last year. The lowest price for the month was $98.50 / tonne at the beginning of the month, and the highest price was $103.05 / tonne in the middle of the month, with the highest monthly increase of 4.4 per cent. The cumulative average price of imported powdered ore from January to June was 90.11 US dollars per ton, up 0.9 percent from the same period last year.

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

From January to June, the growth rate of fixed asset investment in the mining industry dropped by 3.9%. Among them, the growth rate of investment in the ferrous metal mining and dressing industry fell by 7.0%, an increase of 1.6 percentage points over the same period last year, an increase of 2.3 percentage points compared with the decline from January to May; private investment in the ferrous metal mining and dressing industry increased by 5.6%, and the growth rate increased by 19 percentage points from a year earlier to an increase of 19% over the same period last year. 7.4 percentage points lower than the growth rate from January to May. Generally speaking, from January to June, the investment willingness of ferrous metal mining and dressing industry was not strong, and the investment confidence was frustrated.

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

According to data from the National Bureau of Statistics, from January to June, the operating income of the ferrous metal mining and dressing industry was 170.75 billion yuan, an increase of 2.8 percent over the same period last year, and the total profit was 12.21 billion yuan, an increase of 24.2 percent over the same period last year.

VIII. Focus on monitoring the operation of enterprises

Product output

In June, large and medium-sized mining enterprises mainly monitored by the China Metallurgical Mining Enterprises Association produced 31.217 million tons of iron ore, accounting for 40 percent of the country's total output, and the monthly production increased by 2.7 percent over the same period last year. From January to June, the total production of iron ore was 181.2054 million tons, an increase of 2.9 percent over the same period last year. The increase of iron ore production of key enterprises in June was 5.7 percentage points lower than that of the national production, and the cumulative increase of iron ore production from January to June was 1.6 percentage points lower than that of the national iron ore production. 9.965 million tons of iron concentrate were produced in June, an increase of 2.9% over the same period last year. From January to June, 57.058 million tons of iron concentrate were produced, an increase of 1.6% over the same period last year.

Operating condition

In June, the main business income of large and medium-sized mining enterprises monitored by the association was 6.985 billion yuan, a decrease of 3.2% over the same period last year. From January to June, the main business income was 40.428 billion yuan, an increase of 3.7% over the same period last year. The total profits of large and medium-sized mining enterprises that were mainly monitored in June totaled 3.119 billion yuan, and from January to June they totaled 9.898 billion yuan, an increase of 41.4 percent over the same period last year.

financial status

The asset-liability ratio was 49.1%, down 4.8 percent from the same period last year.

Cost status

From January to June, the iron concentrate manufacturing cost of large and medium-sized mining enterprises monitored by the association was 358.74 yuan / ton, down 0.2% from the same period last year; the iron ore manufacturing cost of open-pit mine was 52.39 yuan / ton, up 2.2% from the same period last year; the iron ore manufacturing cost of underground mine was 95.93 yuan / ton, down 5.3% from the same period last year; and the management cost was 4.17 billion yuan, down 3.7% from the same period last year. The sales cost was 456 million yuan, down 8.4% from the same period last year.

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