Xi Rong tells you how steel is developing in the Chinese market?

Steel has been widely used in all walks of life in recent years, and there are many types of steel, according to the shape or section of different steel can be divided into many categories, the following with Xirong steel structure company to understand!

According to the different cross-sectional shapes, steel is generally divided into four categories: profiles, plates, pipes and metal products. Steel is a material of a certain shape, size and performance made by pressure processing of ingots, billets or steel. Most steel processing is through pressure processing, so that the processed steel (billet, ingot, etc.) produces plastic deformation. According to the different processing temperatures of steel, it can be divided into cold working and hot working.

(1) The output reached the highest level in history. From January to June 2013, the cumulative production of crude steel in the country was 390 million tons, a year-on-year increase of 7.4%, and the growth rate was 5.6 percentage points higher than the same period last year. In the first six months, the average daily output of crude steel was 2.154 million tons, equivalent to the annual output of 786 million tons of crude steel. Among them, it reached a record high of 2.208 million tons in February, and although it fell from March to June, it remained at a high level of more than 2.1 million tons. From January to June, crude steel production in Hebei and Jiangsu provinces increased by 6.8% and 13.2% year-on-year, respectively, and the total new output of the two provinces accounted for 42.4% of the national increase of 26.94 million tons, and Shanxi, Liaoning, Henan and Yunnan provinces also increased production by more than 1 million tons. In terms of enterprise type, from January to June, the crude steel output of key large and medium-sized steel enterprises increased by 5.5% year-on-year, which was 2 percentage points lower than the national average, but 60% of the increase in production still came from key large and medium-sized steel enterprises.

(2) Steel prices are running at a low level. From January to June 2013, the overall performance of the domestic steel market was sluggish. With the significant release of crude steel production capacity, market supply and demand have fallen into an imbalance, and steel prices have entered a downward channel, which has fallen weakly for more than 4 months. As of July 26, 2013, the steel price index fell to 100.48 points, down from 6.6 points at the beginning of the year. The prices of the eight steel varieties highlighted by the Iron and Steel Industry Association have decreased to varying degrees compared with the beginning of the year, with an average decline of 5.7%. In terms of varieties, the prices of construction wire rod and rebar, which account for a large proportion of China's steel production, fell by 4.9% and 6.7% respectively, and the prices of medium and heavy plate and hot-rolled coil fell by 5.7% and 9.7% respectively.

(3) Steel exports grew rapidly. The imbalance between supply and demand in the domestic steel market stimulates the export of enterprises. From January to June, China's cumulative export of steel products was 30.69 million tons, a year-on-year increase of 12.6%; Steel imports were 6.83 million tons, down 1.8%, and imported billets and ingots were 320,000 tons, up 50%. The billet is converted into crude steel, and the cumulative net export is 25.06 million tons, an increase of 17.3% year-on-year, accounting for 6.4% of China's crude steel production. From the perspective of export prices, the average price of export bars and wires from January to June was 624.3 US dollars / ton, down 18% year-on-year; Plate 835.2 US dollars / ton, down 2.8% year-on-year.

(4) Steel mills and social inventories operate at a high level. The contradiction between market supply and demand spread to the circulation field, and domestic steel inventories continued to grow at the end of last year. to the record high of 22.52 million tons, an increase of 3.51 million tons from the highest point of the previous year, of which construction steel stocks were 14.32 million tons, accounting for 63.6% of the total inventory. After that, inventories gradually retreated as seasonal consumption increased, falling to 15.4 million tonnes on July 26. The oversupply of the market also pushed up steel mill inventories, with steel inventories of key enterprises hitting a record 14.51 million tons in mid-March, up 29.7% year-on-year, falling to 12.68 million tons in late June, still up 29.9% from the beginning of the year and 11.4% from the same period in 2012.

(5) The profitability of steel mills has been declining month by month. In the first half of 2013, the metallurgical industry achieved a profit of 73.69 billion yuan, a year-on-year increase of 13.7%, of which the ferrous metal smelting and rolling processing industry achieved a profit of 45.44 billion yuan, a year-on-year increase of 22.7%. From January to May, the profitability of key large and medium-sized steel enterprises was far less than the overall level of the industry, and showed a trend of decline month by month, although the profit increased by 34%, but only 2.8 billion yuan, and the sales profit margin was 0.19%. In May, 86 key large and medium-sized steel companies only achieved a profit of 150 million yuan, a month-on-month decline for five consecutive months, of which 34 lost money, with a loss of up to 40%.

(6) The growth rate of fixed asset investment in the steel industry has fallen significantly. From January to June 2013, the investment in fixed assets in the steel industry was 303.5 billion yuan, a year-on-year increase of 4.3%, of which the investment in ferrous metal smelting and rolling was 235.6 billion yuan, a year-on-year increase of 3.3%, down 6.1 percentage points from the same period in 2012; The investment in ferrous metal mining and selection was 67.9 billion yuan, a year-on-year increase of 7.8%, and the growth rate fell sharply by 15 percentage points.

Do you understand the above introduction to the development trend of steel? If you need to consult more, you can directly click the upper right corner online consultation and get in touch with Xirong steel structure!