Steel Industry Operation
(I) production is at an all-time high. From January to June 2013, the country produced 390 million tons of crude steel, an increase of 7.4% over the same period last year, and the growth rate was 5.6 percentage points higher than that of the same period last year. In the first six months, the average daily output of crude steel was 2154,000 tons, equivalent to 786 million tons of crude steel a year. Among them, February reached a record high of 2208,000 tons, although it fell back in March and June, but remained at a high level of over 2.1 million tons. Points provinces, between January and June, hebei, jiangsu provinces crude steel production increased by 6.8% and 13.2% respectively, compared to the two provinces combined new production accounted for 42.4% of the country's 26.94 million tonnes of increment, otherwise and yunnan, henan, shanxi, liaoning province is over 1 million tons. Enterprise type, 1 - June, key large and medium-sized steel enterprises crude steel production growth of 5.5% year-on-year, below the national average increase of 2%, but there are still a 60% increase from the key large and medium-sized iron and steel enterprises.
(2) low price operation of steel. From January to June 2013, the overall domestic steel market performance was depressed. With the large release of crude steel production capacity, the market supply and demand are unbalanced, the price of steel has entered the downward channel, and the weakness has been down for more than 4 months. As of July 26, 2013, the steel price index dropped to 100.48, down from 6.6 at the beginning of the year. The iron and steel association's key statistics on the prices of eight steel varieties have fallen at a different level from the beginning of the year, with an average decline of 5.7 percent. In terms of varieties, the price of construction materials and rebar steel, which account for a large proportion of China's steel production, fell by 4.9% and 6.7% respectively, and the price of medium plate and hot-rolled coil fell by 5.7% and 9.7% respectively.
(3) steel exports have increased rapidly. The imbalance between supply and demand of domestic steel market stimulates the export of enterprises. From January to June, China's total exports of steel totaled 30.69 million tons, up 12.6% year on year. Imports of steel 6.83 million tons, down 1.8 percent, imported steel billets and ingot 320,000 tons, up 50 percent. The raw material is converted into crude steel with a total net export of 25.06 million tons, up 17.3% year on year, accounting for 6.4% of China's crude steel production. In terms of export prices, the average price of export rod in January and June was 624.3 usd/ton, which was down 18% year on year. The board was $835.2 / ton, down 2.8% year on year.
(4) high operation of steel mills and social stocks. The contradiction of market supply and demand is spreading to the circulation area, and domestic steel stocks continue to grow at the end of last year. On March 15, it reached a record high of 22,520,000 tons, an increase of 3.51 million tons over the previous year. Among them, construction steel inventory was 14.32 million tons, accounting for 63.6% of the total inventory. Then, as seasonal consumption increased, stocks retreated, dropping to 15.4 million tons on July 26. Market supply exceeds demand has also pushed steel inventories, key enterprises in mid-march steel stock record, reached 14.51 million tons, up 29.7% from a year earlier, in late June fell to 12.68 million tons, still rose 29.9% from a year earlier, up 11.4% over the same period in 2012.
(5) the profitability of the steel mill is declining month by month. In the first half of 2013, the profit of metallurgical industry reached 73.69 billion yuan, up 13.7% year on year, among which the profit of ferrous metal smelting and rolling processing was 45.44 billion yuan, up 22.7 percent year on year. 1 - may focus on large and medium-sized iron and steel enterprises is much less than the industry overall profit level, and the monthly decline, despite the profit growth of 34%, but also only 2.8 billion yuan, return on sales of 0.19%. In the month of may, 86 major and medium-sized iron and steel enterprises only realized a profit of 150 million yuan, falling for five consecutive months, with 34 losses and a loss of up to 40%.
(6) the growth of fixed asset investment in the steel industry has fallen significantly. Between January and June 2013, the steel industry investment in the fixed assets of 303.5 billion yuan, up 4.3% from a year earlier, the black metal smelting and rolling investment 235.6 billion yuan, up 3.3% from a year earlier, down 6.1% than the same period in 2012; The investment in black metal mining was 67.9 billion yuan, up 7.8 percent year on year, and the growth rate was down by 15 percent.