Unlike last year's hot market trend, the steel industry this year after a poor start, has not been waiting for the expected release of demand. The first three quarters, facing challenges such as weakening demand and high costs, the steel industry has been under pressure all the way forward.
On October 31, the China Iron and Steel Industry Association held a three-quarter information conference in Beijing, introducing the first three quarters of the operation of the steel industry.
China Steel Association Vice President and Secretary-General Qu Xiuli said that this year, the steel industry operating environment is more severe, the production and operation of enterprises face weakening downstream demand, falling steel prices, rising raw fuel costs and other challenges. In the face of many challenges, the steel industry to actively adapt to market changes, to improve quality, reduce costs and increase efficiency measures, the overall operation of the industry has remained relatively stable, and has been stabilized to a good trend.
The first half of this year, the domestic steel market demand is relatively weak, steel production, steel import and export data, steel prices are down year-on-year, the market recovery is less than expected.
According to data released by the National Bureau of Statistics, the first three quarters, the country's cumulative steel production of 781 million tons, down 3.4%; pig iron production of 656 million tons, down 2.5%; steel production of 1.006 billion tons, down 2.2% year-on-year. Among them, in July, the national average daily steel production of 2.63 million tons, the lowest level of the year. With China's economic recovery to improve, market expectations improve, August and September, the national average daily steel production back to the ring.
According to CISA's calculations, in the first three quarters, domestic steel apparent consumption was about 741 million tons, down 4.2% year-on-year. The main steel industries, the real estate industry indicators have declined, machinery, automotive industry, although the overall growth but a smaller increase. In the third quarter, a series of economic stabilization measures have come into effect, the main steel industry, especially infrastructure construction and manufacturing industries show a return to improvement, but the overall demand is still relatively weak.
In terms of import and export, according to data released by the General Administration of Customs, the first three quarters, the country's total exports of 51.21 million tons of steel, down 3.4% year-on-year; 8.34 million tons of imported steel, down 22.1%. The number of steel imports and exports fell, but the overall price has risen. The first three quarters, China's average steel export price of $ 1472 / ton, up 32.2% year-on-year; the average import price of $ 1590 / ton, up 25.8%.
Domestic steel prices fell significantly in the first three quarters. China Steel Association monitoring data show that the first three quarters, China Steel Price Index (CSPI) average of 126.90 points, down 11.42% year-on-year. From the monthly situation, January-April rose slightly, May-July continued to fall, August-September to stop falling and stabilize. September at the end of the Chinese steel price index (CSPI) of 112.76 points, down 1.41%, down 14.38% from the beginning of the year, down 28.50%.
On the cost side, this year, coking coal, coke, iron ore, scrap and other raw fuel prices rose rapidly and continued to be high, resulting in high steel production costs, the industry to improve efficiency faces enormous pressure.
According to the China Steel Association statistics, the first three quarters, key steel enterprises coking coal procurement costs rose 51.1% year-on-year, the purchase cost of blown coal rose 40.3% year-on-year, the purchase cost of imported iron ore fell year-on-year, but is still higher than the same period in 2019 and 2020 levels.
Under the influence of weak demand and rising costs, the performance of steel companies in the first three quarters has also declined significantly. According to the CISA statistics, in the first three quarters, member steel companies achieved a total revenue of 4.87 trillion yuan, down 9.27% year-on-year; profit and tax of 189 billion yuan, down 56.98% year-on-year; total profit of 92.8 billion yuan, down 71.34% year-on-year. China Steel Association said that the overall rate of decline and the same period last year, the base is high.
Qu Xiuli said, from the enterprise research situation, the whole industry of China's steel in the market environment changes in the long-term and inevitable have a more realistic and sober understanding of the new market environment is enhancing the adaptability of the measures taken to cope with the market impact is showing results.
Qu Xiuli said that the next phase, the steel industry will continue to strengthen the monitoring of the operation, and strive to achieve stable operation of the industry, optimize the policy environment to vigorously promote joint restructuring of the industry, and continuously improve industrial concentration; while adhering to green and low-carbon, and actively promote the three major steel transformation projects; strengthen the construction of the industry chain, and accelerate the implementation of the cornerstone plan and the promotion of steel housing as the main direction of steel applications to expand the implementation of the plan to land.
In addition, the steel industry will continue to focus on resource advantages, collaborate to promote scientific and technological innovation, and focus on tackling a number of "neck" steel materials and core technologies.
