Zhang Changfu, vice president of China Iron and Steel Association, recently said at the regular information meeting that due to the further slowdown in steel production growth, product structural contradictions are more prominent, enterprises are facing greater financial pressures, and high production costs will continue, and so on. In the second half of this year, China's steel industry will face greater difficulties in its operation.
The latest data shows that in the first half of this year, China's steel industry continued to maintain rapid development, and crude steel output reached 350 million tons, an increase of 9.6%. However, due to the sharp increase in the price of imported iron ore, it has made the production and operation of enterprises more difficult, and steel companies are still in a low-efficiency state. The member companies that were included in the statistics of the association had a sales profit margin of only 3.14% in the first half of the year, down 0.4 percentage points year-on-year.
According to customs statistics, the average landed price of imported iron ore in the first half of the year was 160.89 US dollars per ton, a record high, up by 47.92 US dollars per ton over the same period last year, an increase of 42.41%. In the first half of the year, the import of iron ore was 334.25 million tons. Due to the sharp increase in import prices, foreign exchange expenditure was 16.01726 billion US dollars. According to the average exchange rate of RMB against the US dollar in the first half of the year, the cost of the steel industry was increased by 104.11 billion yuan.
At the same time, factors such as coal and electricity also have an impact on steel production. In order to alleviate the power shortage, the state raised the price of electricity sold by 15 provinces (municipalities) such as Shanxi, and will introduce new pricing mechanism for refined oil products, as well as price reform measures for resource products such as ladder prices, and natural gas prices will also be Up. From the above situation, the trend of high cost of steel production is difficult to change in the short term.
Zhang Changfu said that in the first half of this year, the apparent consumption of medium-thick wide steel belts only increased by 3.7%, while the bar and steel bars reached 11.4% and 15.2% respectively. In the case of the original, fuel prices have risen sharply, the price of plate and hot-rolled coils has not only increased slightly, but even lower than the price of rebar in the same period. At the same time, steel exports have shown a downward trend from March onwards. In the first half of the year, net exports of crude steel increased by only 1.09 million tons, only 6.8%. Due to the large-scale construction of affordable housing in the second half of the year and the implementation of the spirit of the Central Water Conservancy Work Conference, large-scale hydraulic engineering construction will also be carried out one after another, and the demand for construction steel market will be more vigorous. The growth of shipbuilding, automobiles and construction machinery will slow down, and the structural contradictions of products will become more prominent. The overcapacity of plate and strip and the homogenization competition of products will become more intense. Therefore, steel production growth in the second half of the year will likely slow down.
According to the statistics of China Steel Association, the financial expenses of large and medium-sized iron and steel enterprises in the first half of the year increased by 33.79%. If the liquidity of the market in the later period is further weakened, the situation facing enterprises is even more severe.
At the press conference, Zhang Changfu also announced that the "China Iron Ore Price Index" (hereinafter referred to as the Index) prepared by the China Iron and Steel Association will be put into trial operation in August and officially launched in October. The index will be announced on a weekly basis. According to reports, the index includes two sub-indices: “domestic iron ore price index†and “imported iron ore price indexâ€. The “domestic iron ore price index†is based on the price of dry iron fine powder in 14 provinces, autonomous regions and 32 mining areas; the “imported iron ore price index†will be related to the member companies of Sinosteel Concord Minmetals Chamber of Commerce. Based on the data, and refer to the transaction price of imported iron ore market in 8 domestic ports. The above two indices are “weighted and calculated†to obtain the “China Iron Ore Price Indexâ€.
The latest data shows that in the first half of this year, China's steel industry continued to maintain rapid development, and crude steel output reached 350 million tons, an increase of 9.6%. However, due to the sharp increase in the price of imported iron ore, it has made the production and operation of enterprises more difficult, and steel companies are still in a low-efficiency state. The member companies that were included in the statistics of the association had a sales profit margin of only 3.14% in the first half of the year, down 0.4 percentage points year-on-year.
According to customs statistics, the average landed price of imported iron ore in the first half of the year was 160.89 US dollars per ton, a record high, up by 47.92 US dollars per ton over the same period last year, an increase of 42.41%. In the first half of the year, the import of iron ore was 334.25 million tons. Due to the sharp increase in import prices, foreign exchange expenditure was 16.01726 billion US dollars. According to the average exchange rate of RMB against the US dollar in the first half of the year, the cost of the steel industry was increased by 104.11 billion yuan.
At the same time, factors such as coal and electricity also have an impact on steel production. In order to alleviate the power shortage, the state raised the price of electricity sold by 15 provinces (municipalities) such as Shanxi, and will introduce new pricing mechanism for refined oil products, as well as price reform measures for resource products such as ladder prices, and natural gas prices will also be Up. From the above situation, the trend of high cost of steel production is difficult to change in the short term.
Zhang Changfu said that in the first half of this year, the apparent consumption of medium-thick wide steel belts only increased by 3.7%, while the bar and steel bars reached 11.4% and 15.2% respectively. In the case of the original, fuel prices have risen sharply, the price of plate and hot-rolled coils has not only increased slightly, but even lower than the price of rebar in the same period. At the same time, steel exports have shown a downward trend from March onwards. In the first half of the year, net exports of crude steel increased by only 1.09 million tons, only 6.8%. Due to the large-scale construction of affordable housing in the second half of the year and the implementation of the spirit of the Central Water Conservancy Work Conference, large-scale hydraulic engineering construction will also be carried out one after another, and the demand for construction steel market will be more vigorous. The growth of shipbuilding, automobiles and construction machinery will slow down, and the structural contradictions of products will become more prominent. The overcapacity of plate and strip and the homogenization competition of products will become more intense. Therefore, steel production growth in the second half of the year will likely slow down.
According to the statistics of China Steel Association, the financial expenses of large and medium-sized iron and steel enterprises in the first half of the year increased by 33.79%. If the liquidity of the market in the later period is further weakened, the situation facing enterprises is even more severe.
At the press conference, Zhang Changfu also announced that the "China Iron Ore Price Index" (hereinafter referred to as the Index) prepared by the China Iron and Steel Association will be put into trial operation in August and officially launched in October. The index will be announced on a weekly basis. According to reports, the index includes two sub-indices: “domestic iron ore price index†and “imported iron ore price indexâ€. The “domestic iron ore price index†is based on the price of dry iron fine powder in 14 provinces, autonomous regions and 32 mining areas; the “imported iron ore price index†will be related to the member companies of Sinosteel Concord Minmetals Chamber of Commerce. Based on the data, and refer to the transaction price of imported iron ore market in 8 domestic ports. The above two indices are “weighted and calculated†to obtain the “China Iron Ore Price Indexâ€.
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