Although steel prices are not low this year, the price of iron ore is close to the highest level in history, making the profits of Chinese steel mills bleak. According to the latest statistics from the National Development and Reform Commission, the profits of Chinese steel mills shrank by 0.1% year-on-year in the first four months.
According to the latest statistics released by the National Development and Reform Commission website on June 24, the entire steel industry, including mines and steel mills, achieved a profit of 90.9 billion yuan in the first four months, an increase of 16.8% year-on-year. However, in the first quarter, domestic and imported iron ore prices were rampant, and most of the new profits of the industry were divided by the mines.
Statistics from the National Development and Reform Commission show that in the first April, the ferrous metal mining ore dressing industry made a profit of 24.1 billion yuan, an increase of 71.6%, and the steel mill (ferrous metal smelting and rolling processing industry) had a profit of 48.5 billion yuan, a year-on-year decline of 0.1%.
The domestic steel market rose from the second half of last year and remained at a relatively high level of approximately 4,900 yuan (rebar) in the near term. The NDRC statistics also prove the trend of the steel market. Data show that in May, the domestic steel market price index averaged 136.04, an increase of 2.24 points over the previous month and an increase of 13 points over the same period last year. The average price of 6.5mm high line was 4,954 yuan/ton, up 33 yuan/ton from the previous month, or 0.7%, up 14% year-on-year; 20mm plate price 5,062 yuan/ton, down 6 yuan/ton from the previous month, It was 0.1%, up 7.5% year-on-year; 1.0mm cold-rolled coil prices were 5,638 yuan/ton, down 34 yuan/ton from the previous month, a decrease of 0.6%, and 4.7% year-on-year.
In respect of steel plant production, in May, the country’s crude steel production increased by 7.8% year-on-year, the growth rate slowed by 12.9 percentage points year-on-year, and steel production increased by 10.6%, a 13-percentage-point drop. Coke production increased by 11.9%, slowing down by 8.6 percentage points. Ferroalloy production rose 13.1%, slowing down by 8.5 percentage points. The export of steel products was 4.76 million tons, which was 10,000 tons less than the previous month. Imports were 1.28 million tons, which was 90,000 tons less than the previous month. The export of coke was 450,000 tons, which was 30,000 tons less than the previous month.
Since the beginning of this year, the price of imported iron ore has been operating at a high level. This is the most important reason for the decline in the profits of steel mills. According to customs statistics, China’s total iron ore imports reached 283 million tons in the first five months, an increase of 8.1% from 262 million tons in the same period of last year, while total imports in the previous May reached US$ 45.2 billion, which was US$ 28.32 billion in the same period of last year. An increase of 59.6%. According to the average import price, the average import price in the first five months of this year reached US$159.6/ton, compared with only US$108.1/ton in the same period of last year, and the average price increase this year reached 48%.
According to the latest statistics released by the National Development and Reform Commission website on June 24, the entire steel industry, including mines and steel mills, achieved a profit of 90.9 billion yuan in the first four months, an increase of 16.8% year-on-year. However, in the first quarter, domestic and imported iron ore prices were rampant, and most of the new profits of the industry were divided by the mines.
Statistics from the National Development and Reform Commission show that in the first April, the ferrous metal mining ore dressing industry made a profit of 24.1 billion yuan, an increase of 71.6%, and the steel mill (ferrous metal smelting and rolling processing industry) had a profit of 48.5 billion yuan, a year-on-year decline of 0.1%.
The domestic steel market rose from the second half of last year and remained at a relatively high level of approximately 4,900 yuan (rebar) in the near term. The NDRC statistics also prove the trend of the steel market. Data show that in May, the domestic steel market price index averaged 136.04, an increase of 2.24 points over the previous month and an increase of 13 points over the same period last year. The average price of 6.5mm high line was 4,954 yuan/ton, up 33 yuan/ton from the previous month, or 0.7%, up 14% year-on-year; 20mm plate price 5,062 yuan/ton, down 6 yuan/ton from the previous month, It was 0.1%, up 7.5% year-on-year; 1.0mm cold-rolled coil prices were 5,638 yuan/ton, down 34 yuan/ton from the previous month, a decrease of 0.6%, and 4.7% year-on-year.
In respect of steel plant production, in May, the country’s crude steel production increased by 7.8% year-on-year, the growth rate slowed by 12.9 percentage points year-on-year, and steel production increased by 10.6%, a 13-percentage-point drop. Coke production increased by 11.9%, slowing down by 8.6 percentage points. Ferroalloy production rose 13.1%, slowing down by 8.5 percentage points. The export of steel products was 4.76 million tons, which was 10,000 tons less than the previous month. Imports were 1.28 million tons, which was 90,000 tons less than the previous month. The export of coke was 450,000 tons, which was 30,000 tons less than the previous month.
Since the beginning of this year, the price of imported iron ore has been operating at a high level. This is the most important reason for the decline in the profits of steel mills. According to customs statistics, China’s total iron ore imports reached 283 million tons in the first five months, an increase of 8.1% from 262 million tons in the same period of last year, while total imports in the previous May reached US$ 45.2 billion, which was US$ 28.32 billion in the same period of last year. An increase of 59.6%. According to the average import price, the average import price in the first five months of this year reached US$159.6/ton, compared with only US$108.1/ton in the same period of last year, and the average price increase this year reached 48%.
Prefabricated House,Steel Structure Co., Ltd. , http://www.wfsteelstructure.com