China steel industry's Jan-May profits slide significantly

sxcoal.com Price,  Import & Export,  Production & Sales,  Cost & Profit,  Iron Ore,  Steel Products 2020-07-07 11:23:55

Steel production and sales have resumed to normal and operated stably by May, while the profit of China's steel industry slumped sharply over January-May amid double squeezes from falling steel prices and rising imported iron ore prices, showed data from the Ministry of Industry and Information Technology (MIIT) released on July 3.


The profit of ferrous metallurgy and rolling processing industry slid sharply by 50.6% year on year to 18.70 billion yuan ($2.65 billion) in May, with the operating income reaching 604.65 billion yuan, a year-on-year decrease of 0.9%.


From January to May, ferrous metallurgy and rolling processing industry realized a total profit of 49.33 billion yuan, down 57.2% year on year, with the operating income reaching 2.55 trillion yuan, down 6.0% year on year.


Steel output kept high. According to data from the National Bureau of Statistics (NBS), output of pig iron, crude steel and steel products reached 77.32 million, 92.27 million and 114.53 million tonnes in May, up by 2.4%, 4.2% and 6.2% year on year respectively.


China produced 360 million, 410 million and 490 million tonnes of pig iron, crude steel and steel products from January to May, a year-on-year growth of 1.5%, 1.9% and 1.2% respectively.


Steel prices fell continuously. China's steel price index averaged 99.8 points in May, down 10.8% from a year ago. The index contracted 8.3% from the previous year to 100.3 points during January-May, compared with a reduction of 5.7% in the first quarter.


Steel stocks of key steel mills in China totaled 13.28 million tonnes in late May, a decrease of 8.13 million tonnes or 38.0% from the peak in early March, according to the statistics of China Iron and Steel Association.  


The stocks of five major steel varieties - rebar, steel wires, HRC, medium plates and CRC- hit 13.12 million tonnes in 20 cities, a decrease of 7.09 million tonnes or 35.1% from the peak in early March, falling for eight successive sessions from early March.


Steel exports remained under headwinds. According to statistics from the General Administration of Customs, China exported 4.40 million tonnes of steel products totally in May, tumbling by 23.4% on the year. Steel imports were 1.28 million tonnes, an increase of 30.3% year on year.


From January to May, the cumulative steel exports reached 25.0 million tonnes, down 14.0% year on year, and imports were 5.46 million tonnes, up 12.0% year on year.


Iron ore prices continued climbing up. In May, China's average composite iron ore price index was 335.6 points, an increase of 8.6% month on month, of which the average imported iron ore price index was 339.0 points, growing by 10.1% from a month ago.


From January to May, the index averaged 325.2 points, an increase of 4.3% year on year, of which the average imported iron ore price index was 326.3 points, an increase of 2.0% year on year.


Surprisingly, the ferrous metal mining and processing industry has achieved favorable performance during January-May, with the total profit reaching 10.18 billion yuan, an increase of 20.9% year on year. The growth expanded 68.7 percentage points from the first quarter, according to data from the NBS.  


(Writing by Shengnan Liu  Editing by Jessie Jia)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 China Jul thermal coal market: prices in reversed V shape 2020-08-07

Thermal coal prices rose in China in the first half of July backed by safety regulation and control on sales quota at mines, but headed south in the second half amid a slide in buying interest from we

2 China Jul coastal coal shipping market: freight rates up on demand 2020-08-07

China's coastal coal shipping market spiraled up in July, as some power plants maintained coal shipment from northern ports. Purchase was robust from power plants in Guangdong and Fujian

3 Chinese coking coal market still silent amid weak supply-demand fundamentals 2020-08-07

China's coking coal market extended the silence on August 7 citing abundant supply, poor demand and high stocks at both supply and demand sides. Coking coal stocks at mines surveyed by sx

4 China Coal Daily Track (Aug 7) 2020-08-07

Thermal coal Production area Coal delivery in Shaanxi province improved after the rain tapered off. Demand, especially for lumps, fared better, with some mines lifting prices by 5-20 yuan/t

5 Typhoon drives up thermal coal vessel freight despite waning demand 2020-08-07

Typhoon Hagupit, the fourth typhoon of this year, has brought heavy downpours and disrupted coal handling at Chinese ports, driving up shipping rates of thermal coal vessels, although downstream deman

6 Indonesian thermal coal outlook dims as tepid demand persists 2020-08-07

Outlook for Indonesian thermal coal market was clouded by persisting tepid demand from major importing countries, and recent deep output cuts are less likely to create a strong jolt in the short run.

7 Weekly China coal market news summary (Aug 3-Aug 7) 2020-08-07

China's Jul coal imports slump 20.63% on yr China's coal imports slumped 20.63% in July compared with the same month last year, as strict import restrictions continued to weigh ... &nbs

8 Weekly global coal market news summary (Aug 3-Aug 7) 2020-08-07

Global coal-fired power plants size first decreases in H1 The size of coal-fired power generation utilities decreased for the first time on record in the first half of 2020, with the closed

9 China's Jul natural gas imports fall 11.8% on mth, customs 2020-08-07

China imported 7.35 million tonnes of natural gas in July, falling 0.99 million or 11.8% from the preceding year, showed data from the General Administration of Customs on August 7. The i

10 China's Jul coal imports slump 20.63% on yr 2020-08-07

China's coal imports slumped 20.63% in July compared with the same month last year, as strict import restrictions continued to weigh down Chinese buying appetites, despite a large price advantage of o

Most Read Articles

1 Glencore H1 coal production rises 15% amid COVID-19 woes 2020-08-03

Glencore said in a report on July 31 that its coal production declined 15% year on year to 58.10 million tonnes in the first half of this year, mainly due to some operations' suspension in Colombia am

2 China's 90 large coal miners H1 output up 0.3% 2020-08-03

Raw coal output from China's 90 large miners climbed 0.3% from a year ago to 1.3 billion tonnes during January-June, official data showed. Operating revenue (including non-coal businesses

3 Australian thermal coal price logs a 27% yearly drop despite similar demand shrink 2020-08-04

Australian high-ash thermal coal price was subject to a nearly 27% year-on-year decline, although the price was also in a 20-day downside starting from July 24 last year due to similar demand shrink,

4 Bayan Resources H1 coal output falls nearly 25% 2020-08-05

Bayan Resources, one major coal producer in Indonesia, registered a year-on-year slump of 24.4% in coal output to 12.1 million tonnes in the first half year. Its coal sales decreased 3.9%

5 China's domestic thermal coal market moving sideways with downward bias 2020-08-03

This week started with a quiet session for the spot thermal coal market at northern Chinese transfer ports, the same picture like other days last week, as demand remained lackluster and supply kept gr

6 Tepidness continues in China coking coal market 2020-08-03

Tepidness was still seen in China's coking coal market, and prices of the steel-making material remained under downward pressure. Last week 12 mines monitored by sxcoal.com cut coking coa

7 Mongolian year-to-date coal exports plunge 46.4% on COVID-19, customs 2020-08-04

The year-to-date coal export from Mongolia totaled 11.26 million tonnes as of August 2, marking a year-on-year slump of 46.4%, according to Mongolian website IKON on August 3, citing Mongolian customs

8 Indonesia Aug coal HBA price hits fresh low 2020-08-06

The Indonesian government set its coal benchmark price (HBA) for August at $50.34/t, notching the lowest since January 2009, the Energy and Mineral Resources Ministry said in a statement on August 5.

9 Indonesian thermal coal loses strength in Chinese market, driving market shift 2020-08-03

Indonesian low-calorific value thermal coal, usually popular among Chinese buyers for blending in power generation, lost strength again in Chinese market after a fortnight of uptick. This

10 China's H1 coal railway shipments down 6.8% on yr 2020-08-04

Coal shipments through the railway network across China totaled 1.12 billion tonnes in the first six months this year, down 6.8% from the same period in 2019, data from the National Development and Re