In the January-June period of the current year, China’s pig iron, crude steel and finished steel output amounted to 404.0 million mt, 492 million mt and 587 million mt, up 7.9 percent, 9.9 percent and 11.4 percent year on year, respectively, as announced by the Ministry of Industry and Information Technology (MIIT). In April, May and June of this year, China’s crude steel output amounted to 85.03 million mt, 89.09 million mt and 87.53 million mt, rising by 12.7 percent, 10.0 percent and 10.0 percent, respectively, all constituting new historical highs for the given months of the year.
As also indicated by the MIIT, in the first half of this year China's average composite steel price index issued by the China Iron and Steel Association (CISA) was at 109.5 points, down 4.5 percent year on year. In particular, the average CSPI long steel index was at 115.8 points, down 2.5 percent year on year, while the average CSPI flat steel index stood at 105.6 points, decreasing by 6.3 percent year on year.
At the end of June, the Chinese iron ore price index was at 398.32 points, increasing by 67.4 percent year on year, while up 56.8 percent compared to the beginning of the year. On the same date, the China domestic iron ore price index was at 335.55 points, up 48.4 percent year on year while rising by 40.1 percent compared to the beginning of the year, while the iron ore import price index was at 410.18 points, up 71.1 percent year on year and rising by 60.0 percent compared to the beginning of the year.
Meanwhile, in the January-May period of the year, 92 medium-size and large steelmakers in China achieved a gross profit of RMB 85.5 billion ($12.4 billion), down 18.2 percent year on year.
The MIIT stated that, although the overall steel industry moved on a steady trend in the first half of the year, the big rises in crude steel output, the sharp increases in import iron ore prices and the significant decreases in profits should focus the attention of market players.