SISCO: Coarse steel output of member steel enterprises increased by 5.91%

Recently, at the nineteenth China Iron and steel raw materials international symposium, He Wenbo, the party secretary and executive vice president of the China Iron and Steel Industry Association, introduced the operation of the steel industry in 1-8.

In January-August 2019, the output of crude steel in China was 665 million tons, an increase of 9.1% over the same period of last year. The output of crude steel in member enterprises of Steel Association increased by 5.91% and that of non-member enterprises increased by 19.38%, and that of non-member enterprises was much higher than that of member enterprises. In 1-8 months, China exported 44 million 970 thousand tons of steel, a decrease of 2 million 80 thousand tons, a decrease of 4.4%, a total of 7 million 640 thousand tons of imported steel, a decrease of 1 million 120 thousand tons compared with the same period last year, and a decrease of 12.8%. The overall price of steel showed a downward trend. In January-August, the average composite price index of CSPI steel was 108.89 points, which was 6.13 points lower than that of the previous year, with a decline of 5.33%.

Affected by falling steel prices and rising raw material prices, the economic benefits of the whole industry showed a downward trend. From January to August, the profit margin of sales of member iron and steel enterprises was only 4.88%, which was 2.66 percentage points lower than that of the previous year.

He Wenbo said that since 2019, driven by domestic demand, iron and steel production has increased rapidly. According to statistics, steel production increased by 55.51 million tons in the first eight months and net exports decreased by 952,000 tons, which means that the increments are used to meet domestic steel demand, of which 2/3 meet the increment of demand in the construction field. At the same time, demand support is still sustainable.