Industry trends in the steel industry | steel fabrication
(1) The output reached the highest level in history. From January to June of 2013, the country's cumulative production of crude steel 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 in 2012. In the first six months, the average daily output of crude steel was 2.154 million tons, equivalent to an annual output of 786 million tons of crude steel. Among them, it reached a record high of 2.208 million tons in February. Although it dropped from March to June, it still remained at a relatively high level of more than 2.1 million tons. In terms of provinces and regions, from January to June, the crude steel output of Hebei and Jiangsu increased by 6.8% and 13.2% respectively year-on-year. The combined output of the two provinces accounted for 42.4% of the national increase of 26.94 million tons. In addition, Shanxi, Liaoning, Provinces such as Henan and Yunnan have also increased production by more than 1 million tons. In terms of enterprise types, from January to June, the crude steel output of key large and medium-sized iron and steel enterprises increased by 5.5% year-on-year, 2 percentage points lower than the national average increase, but 60% of the increase in production still came from key large and medium-sized iron and steel enterprises.
(2) Low steel prices run. From January to June 2013, the overall performance of the domestic steel market was sluggish. With the large release of crude steel production capacity, market supply and demand have fallen into a state of imbalance, and steel prices have entered a downward channel and have been weakly down for more than four months. As of July 26, 2013, the steel price index fell to 100.48 points, which was lower than 6.6 points at the beginning of the year. The prices of the eight steel products under the key statistics of the Iron and Steel Association have all declined to varying degrees from the beginning of the year, with an average drop of 5.7%. In terms of varieties, the prices of construction wire rod and rebar, which account for a large proportion of my country's steel output, fell 4.9% and 6.7%, respectively, and the prices of medium and heavy plates and hot rolled coils fell 5.7% and 9.7%, respectively.
(3) Steel exports have grown rapidly. The imbalance between supply and demand in the domestic steel market stimulates corporate exports. From January to June, my country exported 30.69 million tons of steel products, an increase of 12.6% year-on-year; imported steel products were 6.83 million tons, a decrease of 1.8%, and imported steel billets and ingots were 320,000 tons, an increase of 50%. Converting billets into crude steel, the cumulative net export was 25.06 million tons, an increase of 17.3% year-on-year, accounting for 6.4% of my country's crude steel output. In terms of export prices, the average export price of bar and wire from January to June was US$624.3/ton, a year-on-year decrease of 18%; and the average price of plates was US$835.2/ton, a year-on-year decrease of 2.8%.
(4) Steel mills and social inventories are running at a high level. The contradiction between market supply and demand spread to the circulation field, and domestic steel stocks continued to grow at the end of the previous year. On March 15, it reached a record high of 22.52 million tons, an increase of 3.51 million tons from the highest point of the previous year, of which 14.32 million tons of construction steel inventory, accounting for 63.6% of the total inventory. After that, with the increase in seasonal consumption, the inventory gradually fell, and fell to 15.4 million tons on July 26. The oversupply in the market also pushed up steel mill inventories. In mid-March, the steel inventory of key enterprises reached a historical record, reaching 14.51 million tons, an increase of 29.7% year-on-year. In late June, it fell to 12.68 million tons, still an increase of 29.9% compared with the beginning of 2012. Year-on-year growth of 11.4%.
(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 iron and steel enterprises was far worse than the overall industry level, and showed a monthly decline. Although the profit increased by 34%, it was only 2.8 billion yuan, and the sales profit rate was 0.19%. In the month of May, 86 key large and medium-sized iron and steel enterprises only achieved a profit of 150 million yuan, which was a decline for the fifth consecutive month. Among them, 34 suffered losses, with losses as high as 40%.
(6) The growth rate of investment in fixed assets in the iron and steel industry has dropped significantly. From January to June 2013, the investment in fixed assets in the iron and 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%, a decrease of 6.1 percentage points from the same period in 2012; The selected investment was 67.9 billion yuan, an increase of 7.8% year-on-year, and the growth rate dropped sharply by 15 percentage points.