China Crude Steel Output Is Estimated to Drop 2.2% YoY in 2022

SHANGHAI, Dec 16 - China Metallurgical Industry Planning and Research Institute (“MPI”) held a conference on the forecast of China and global steel demand in 2022 as well as the competitiveness (and development quality) ratings of Chinese steel enterprises in 2021 on December 15. The MPI believes that China's crude steel output in 2021 and 2022 will be 1.040 billion mt and 1.017 billion mt respectively, down 2.3% and 2.2% year-on-year.

The competitiveness (and development quality) ratings of Chinese steel enterprises released by PMI showed that a total of 122 steel enterprises were assessed this time, with a combined crude steel output accounting for approximately 90.2% of the country's total output.

According to the assessment results, 18 steel companies received A+ rating, including China Baowu Iron & Steel Group Co Ltd, CITIC Pacific Special Steel Group Co Ltd, Shougang Group Co Ltd, Jiangsu Shagang Group. 38 steel companies, including Hebei Jinxi Iron and Steel Group and Fujian Sansteel (Group) Co. Ltd. were granted with A rating. 36 steel companies, including Tangshan Donghai Iron and Steel Group Co. and Hebei Taixing Iron and Steel Group Co. were given B+ rating.

MPI said that there were 92 steel companies rated A+, A or B+, accounting for 75.4% of the total number of steel companies assessed, with a combined crude steel production of 86.3% of the country's total output.