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Trends in the steel industry


Output reached a record high level. From January to June 2013, China produced 390 million tons of crude steel, up 7.4% year on year and 5.6 percentage points higher than the same period last year. In the first six months, the average daily crude steel output was 2.154 million tons, equivalent to the annual crude steel output of 786 million tons. Among them, February reached a record high of 2.208 million tons, March to June although there was a decline, but still maintained at a high level of more than 2.1 million tons. From January to June, the crude steel output of Hebei and Jiangsu increased by 6.8% and 13.2% year on year, respectively. The new output of the two provinces accounted for 42.4% of the total increase of 26.94 million tons in China, and Shanxi, Liaoning, Henan and Yunnan provinces also increased by more than 1 million tons. From January to June, crude steel output of large and medium-sized steel enterprises increased by 5.5% year on year, 2 percentage points lower than the national average, but still accounted for 60% of the increase.

Steel prices run low. From January to June 2013, the overall performance of the domestic steel market was depressed. With the substantial release of crude steel capacity, the market supply and demand fall into an imbalance state, steel prices into the downward channel, has been weak decline for more than 4 months. By July 26, 2013, the steel price index dropped to 100.48 points, down from 6.6 points at the beginning of the year. Iron and Steel Industry association statistics of eight varieties of steel prices at the beginning of the year have different degrees of decline, an average decline of 5.7%. By variety, the price of construction wire and spiral steel, which account for a large proportion of Chinese steel production, fell by 4.9% and 6.7% respectively, while the price of medium and thick plate and hot rolled coil fell by 5.7% and 9.7% respectively.

Steel exports are growing fast. The imbalance of supply and demand in the domestic steel market stimulates enterprises to export. From January to June, the country exported 30.69 million tons of steel, up 12.6% year on year; China imported 6.83 million tons of steel, down 1.8 percent, and imported 320,000 tons of billets and ingot, up 50 percent. Converting billet into crude steel, the accumulated net export of 25.06 million tons, up 17.3% year on year, accounting for 6.4% of the crude steel output of our country. From the perspective of export price, the average export price of rod and wire from January to June was 624.3 USD/ton, down 18% year-on-year. Sheet metal is 835.2 USD/ton, down 2.8% year on year.

Steel mills and social inventories run high. The contradiction between supply and demand in the market spreads to the circulation field, and the domestic steel inventory continues to grow at the end of last year. On March 15, it reached a record high of 22.52 million tons, an increase of 3.51 million tons over the previous year's high. Among them, construction steel inventory of 14.32 million tons, accounting for 63.6% of the total inventory. After that, as seasonal consumption increased, inventories gradually fell to 15.4 million tons as of July 26. The oversupply in the market also pushed up steel mills' inventories, which hit a record high of 14.51 million tons in mid-March, up 29.7 percent year on year, and fell to 12.68 million tons in late June, still 29.9 percent higher than the beginning of the year and 11.4 percent higher than the same period in 2012.

Steel mill profitability is falling month by month. In the first half of 2013, the metallurgical industry achieved a profit of 73.69 billion yuan, up 13.7% year on year, among which the ferrous metal smelting and rolling processing industry achieved a profit of 45.44 billion yuan, up 22.7% year on year. From January to May, the profitability of large and medium-sized iron and steel enterprises is far worse than the overall level of the industry, and is declining month by month. Although the profit increases by 34%, it is only 2.8 billion yuan, and the sales profit rate is 0.19%. In May, 86 large and medium-sized steel enterprises only achieved a profit of 150 million yuan, five consecutive months of month-on-month decline, 34 of them in the red, the loss of up to 40%.

The growth rate of fixed asset investment in the steel industry fell significantly. From January to June 2013, the investment in fixed assets in the iron and steel industry was 303.5 billion yuan, up 4.3% year on year, among which the investment in ferrous metal smelting and rolling was 235.6 billion yuan, up 3.3% year on year, 6.1 percentage points lower than the same period in 2012; The investment in black metal mining was 67.9 billion yuan, up 7.8% year on year, or 15 percentage points lower.

Keywords: Jiuhuayang Mechanical Equipment

News


The operation of the steel industry

Steel output maintained growth. In October, the output of pig iron, crude steel and steel was 76.17 million tons, 92.2 million tons and 11.48 million tons, respectively, up 9.4 percent, 12.7 percent and 14.2 percent year-on-year. From January to October, the output of pig iron, crude steel and steel stood at 740 million tons, 870 million tons and 1.08 million tons, respectively, up 4.3 percent, 5.5 percent and 6.5 percent year-on-year.


What are the classifications of the steel industry

The main raw materials of iron and steel production include iron ore, manganese ore, chromium ore, limestone, refractory clay, dolomite, siderite and other minerals of raw ore and finished ore, artificial block ore, iron alloy, coal washing, coke, gas and coal chemical products, refractory products, carbon products, etc.


Trends in the steel industry

Output reached a record high level. From January to June 2013, China produced 390 million tons of crude steel, up 7.4% year on year and 5.6 percentage points higher than the same period last year. In the first six months, the average daily crude steel output was 2.154 million tons, equivalent to the annual crude steel output of 786 million tons. Among them, February reached a record high of 2.208 million tons, March to June although there was a decline, but still maintained at a high level of more than 2.1 million tons. From January to June, the crude steel output of Hebei and Jiangsu increased by 6.8% and 13.2% year on year, respectively. The new output of the two provinces accounted for 42.4% of the total increase of 26.94 million tons in China, and Shanxi, Liaoning, Henan and Yunnan provinces also increased by more than 1 million tons. From January to June, crude steel output of large and medium-sized steel enterprises increased by 5.5% year on year, 2 percentage points lower than the national average, but still accounted for 60% of the increase.


Steel industry development analysis

From January to September 2013, large and medium-sized steel enterprises achieved cumulative sales revenue decreased by 6.49% compared with the same period last year, according to a steel industry operation report released by the China Iron and Steel Association on Wednesday. The loss of loss-making enterprises reached 26.726 billion yuan, an increase of 41.5 times year-on-year, or 45%. Losses in the steel industry continue to intensify.


Status quo of iron and steel industry

The iron and steel industry is an industrial industry mainly engaged in ferrous mineral mining, ferrous metal smelting and processing and other industrial production activities, including the mineral mining industry of ferrous iron, chromium, manganese, iron, steel, steel processing industry, iron alloy smelting, steel wire and products industry and other subdivisions, is one of the important raw material industries of the country. In addition, since steel production also involves non-metallic mineral extraction and products and other industrial categories, such as coking, refractories, carbon products, etc., these industrial categories are usually included in the steel industry.