SHANGHAI, Aug 5 (SMM) - In the first half of 2022, the steel prices rose first and then fell, but the overall steel industry was generally stable.
First, crude steel output decreased year-on-year. According to the data released by the Bureau of Statistics, the crude steel output increased month by month from January to May 2022 but fell for the first time in June. The output in June was 90.73 million mt, down 5.88 million mt, or 3.3%, from the previous month. From January to June, the crude steel output in China stood at 527 million mt, a year-on-year decrease of 36.45 million mt, or 6.5%.
Second, the steel prices rose first and then fell. In 2022, steel prices kept increasing slowly, and continued to drop since the prices rose to the annual high in mid-April. According to China Iron and Steel Association, as of the end of June, China's comprehensive steel price index was 122.52, down 7.0% from the beginning of 2022 and 14.0% from the year's high.
Third, steel stocks rose year-on-year. As of the end of June, the steel inventory of key enterprises in China was 16.95 million mt, a year-on-year increase of 23.1%, according to China Iron and Steel Association. The social inventory of five varieties of steel in 21 cities of China stood at 12.52 million mt, up 9.3% YoY.
Fourth, profits of the industry declined significantly. According to the Bureau of Statistics, from January to June, the total profit of the ferrous metal smelting and rolling processing industry was 82.6 billion yuan, a year-on-year decrease of 68.7%. The total loss was 41 billion yuan, up 442.4% YoY.
Fifth, the investment in iron ore mining has increased rapidly. According to the data from the Bureau of Statistics, from January to June 2022, the growth rate of investment in the ferrous metal mining and dressing industry increased by 76.1% year-on-year and rose by 74.6 percentage points over the same period last year. The growth rate of investment in the ferrous metal smelting and rolling processing industry grew by 1.6% YoY, up 24.7 percentage points over the same period last year.