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In the first half of the year, the iron and steel industry gradually got rid of the impact of the epidemic.
Jul 31,2020 14:52CST
translation
Source:Ministry of Industry and Information Technology
The content below was translated by Tencent automatically for reference.

SMM News: in the first half of 2020, the iron and steel industry gradually got rid of the impact of the epidemic, resumed work and production in an orderly manner, and production and operation maintained a stable operation.

First, production maintains a high level of operation. In June, the national output of pig iron, crude steel and steel was 77.64 million tons, 91.58 million tons and 115.85 million tons respectively, up 4.1%, 4.5% and 7.5% respectively over the same period last year. From January to June, the national output of pig iron, crude steel and steel was 433 million tons, 499 million tons and 606 million tons respectively, up 2.2%, 1.4% and 2.7% respectively over the same period last year.

Second, steel prices are low. According to the China Iron and Steel Association, in June, China's steel price index averaged 103.1 points, down 5.4% from the same period last year. From January to June, China's steel price index averaged 101.0 points, down 7.7% from a year earlier, of which long wood fell by 8.2% on average and plate by 7.5% on average.

Third, the pressure of steel trade is rising. According to the General Administration of Customs, in June, the country exported 3.701 million tons of steel, down 30.2 percent from the same period last year, and imported 1.878 million tons of steel, an increase of 98.7 percent over the same period last year. From January to June, the country exported a total of 28.704 million tons of steel, down 16.5 percent from the same period last year, and imported 7.343 million tons of steel, an increase of 26.1 percent over the same period last year.

Fourth, the economic benefits have dropped sharply. According to the National Bureau of Statistics, in June, the ferrous metal metallurgy and Calendering industry achieved a business income of 639.1 billion yuan, an increase of 6.0 percent over the same period last year, and a total profit of 34.75 billion yuan, an increase of 35.3 percent over the same period last year. From January to June, the operating income of the ferrous metal metallurgy and Calendering industry reached 3.18604 trillion yuan, down 3.8 percent from the same period last year, and the total profit was 84.08 billion yuan, down 40.3 percent from the same period last year.

Fifth, steel inventory remains high. According to the monitoring of the China Iron and Steel Association, in late June, the steel inventory of key enterprises was 13.62 million tons, an increase of 330000 tons, or 2.5 percent, over the end of last month, and an increase of 2.39 million tons, or 21.3 percent, over the same period last year. The social inventory of five kinds of steel (medium plate, cold-rolled sheet, hot-rolled sheet, wire rod and rebar) in the country's main steel market was 12.16 million tons, down 960000 tons from the previous month, or 7.3 percent, and an increase of 710000 tons, or 6.2 percent, over the same period last year.

Sixth, there has been a simultaneous increase in the import volume and price of ore. According to the General Administration of Customs, iron ore imports in June were 101.68 million tons, up 16.8 percent from the previous month and 35.3 percent from the same period last year. The average import price was 100.8 US dollars per ton, up 10.0 percent from the previous month. From January to June, iron ore imports totaled 546.91 million tons, up 9.6 per cent from the same period last year. The average import price was 90.20 US dollars per ton, up 0.9 per cent from the same period last year and 1.8 per cent higher than in the first quarter.

Seventh, steel consumption continues to grow. In June, China's apparent consumption of crude steel was 90.31 million tons, an increase of 8.6 percent over the same period last year. From January to June, China's apparent consumption of crude steel was 480.66 million tons, an increase of 3.8 percent over the same period last year. From the perspective of the downstream steel industry, compared with the first quarter, the new construction area of real estate, automobile production and ship output increased by 145.8%, 87.1% and 55.9% respectively in the second quarter, strongly supporting the growth of iron and steel production.

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