Steel industry profits fell by nearly 50%

The data released by the National Development and Reform Commission on August 16 showed that in the first half of the year, the iron and steel industry realized a profit of 66.4 billion yuan, a decrease of 49.4% year-on-year. Among them, the profit of the ferrous metal mining industry was 35.8 billion yuan, a decrease of 14.5%; the profits of the iron and steel smelting and processing industries were 24.9 billion yuan, a drop of 68.1%.

Recently, the National Development and Reform Commission reported on the operation of the steel industry in the first half of 2012. In the first half of the year, the country's crude steel output was 3,570,200,000 tons, an increase of 1.8% year-on-year, and the growth rate was down 7.8 percentage points year-on-year. In the first five months, the steel industry realized a profit of 52.2 billion yuan, a decrease of 49.4% year-on-year.

Crude steel production rebounded slightly in mid-July. Since June, the output of crude steel in the country has continued to decline on a ten day basis, but the national crude steel production has rebounded slightly in mid-July. According to the statistics of the China Iron and Steel Association, the average daily output of crude steel in the country in mid-July was 1.993 million tons. In the first half of the month, 1,958,100 tons increased by 35,300 tons or 1.8%. However, the output of crude steel of key steel enterprises was 1,651,200 tons, but the output of the ring decreased by 0.62 million tons or -0.38%.

Sales were weaker in the same period last month in June. In the middle of July, the average daily sales volume of steel in 76 key steel enterprises was 1,120,400 tons, down 37,800 tons or 3% year-on-year in the same period of the previous year; the sales of long steel products were 6,137,700 tons and 5,635,900 tons of plate and strip were sold in mid-June. Decreased by 5% and 0.25% respectively.

The inventory level of key steel enterprises approached the highest point in history. The steel inventory of 76 key steel enterprises was 12.45 million tons, an increase of 165.88 million tons or 5.59% from the previous month of 11.79 million tons in July, setting a record high, approaching the record high inventory of 12.46 million tons in mid-February this year. Stocks are equivalent to 7.89 days of daily output, up by 0.39 days from the previous 7.50 days in July, and higher than the 12-year average of 0.67 days. The stock at the end of the ten days is equivalent to the daily sales of 10.28 days, which is 0.04 days higher than the 10.24 days in the first ten days of July. It is 1.54 days more than the 12-year average of 8.74 days.

Steel prices continue to explore. The average selling price of steel for 76 key enterprises was 4,416 yuan/ton, which was a drop of 73 yuan/ton or 1.6% from the previous month. Among them, the sales price of long products was 4,321 yuan/ton, down 0.57% month-on-month, and the sales price of plate and strip was 4,716 yuan/ton, down by 0.3% from the previous month, while the price of tubing rose by 3.42% against the trend to 6,093 yuan/ton.