Development and Reform Commission: the operation of the steel industry from January to June 2020

1. Steady growth in steel output. According to the National Bureau of Statistics, the national output of pig iron, crude steel, and steel from January to June was 432.68 million tons, 499.01 million tons and 605.84 million tons, respectively, up 2.2%, 1.4% and 2.7% year-on-year.
 
2. Steel exports continued to decline and imports increased substantially. According to data from the General Administration of Customs, from January to June, the country’s cumulative steel exports totaled 28.704 million tons, a year-on-year decrease of 16.5%; the cumulative imports of steel products totaled 7.343 million tons, a year-on-year increase of 26.1%.
 
3. Steel prices continued to rise. According to the monitoring of the China Iron and Steel Association, as of the end of June, China's steel composite price index rebounded to 102.69 points, an increase of 1.7% from the end of May and a decrease of 3.4% from the beginning of the year. The rate of decline continued to narrow.
 
4. The company's efficiency has declined year on year. From January to June, China Iron and Steel Association member steel enterprises achieved sales revenue of 2.09 trillion yuan, a year-on-year increase of 1.18%; realized profits of 68.67 billion yuan, a year-on-year decrease of 36.4%, and the rate of decline continued to narrow; sales profit rate was 3.29%, a year-on-year decrease 1.93 percentage points.
 
5. Steel inventory continued to decline. The social inventory of five steel products (rebar, wire rod, hot rolled coil, cold rolled coil, and plate) in major cities across the country fell to 12.16 million tons at the end of June. Compared with the end of March, the social inventory fell by 36.2%.
 
6. The price of imported ore continued to rise. According to data from the General Administration of Customs, the national iron ore imports from January to June were 546.91 million tons, a year-on-year increase of 9.6%. In June, the average price of imported fine ore (62% grade) was US$100.77/ton, a month-on-month increase of US$9.2/ton, an increase of 10.0%.
 

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