In the first half of the year, my country’s iron and steel industry performed well. The overall situation was booming in production and sales and improved efficiency. Some economic indicators closely related to steel consumption maintained growth. For example, the two-year average growth rate of fixed asset investment accelerated month by month. The growth rate is higher than the level before the epidemic. On August 1, China Iron and Steel Association released the performance of the steel industry in the first half of the year, showing that from the monthly changes in the first half of the year, my country’s steel demand growth rate, crude steel average daily production, steel price index, and corporate economic benefits have all increased. The trend of high decline, while iron ore prices continue to remain high, shows that the pressure of steel companies to reduce costs and increase efficiency is gradually increasing.

　　 In the first half of the year, the country produced a total of 563 million tons of crude steel, an increase of 11.8% year-on-year. Due to the continuous implementation and gradual effects of measures to promote economic recovery since 2020, my country’s major steel industries generally suffer from early consumption overdrafts and gradually rising bases. The apparent consumption of crude steel is expected to be 537 million tons, a year-on-year increase of 10.3%.

　　 According to information released by the China Iron and Steel Association, in the first half of the year, the country produced 456 million tons of pig iron, a year-on-year increase of 4.0%; the country’s cumulative production of steel products was 698 million tons, a year-on-year increase of 13.9%. From the perspective of the output of steel products, the steel products with a large cumulative increase in the first half of the year are: steel bars, medium and thick wide strip steels, cold-rolled thin and wide steel strips, hot-rolled thin and wide steel strips, bars, wire rods (wire rods) and coated plates (Band) etc.

　　 In fact, in the first half of the year, my country's steel mill inventories fluctuated greatly. Since the inventory reached a high point in early March, the inventory has basically been in a downward trend. The decline rate slowed down in May and June, and then rebounded somewhat. The China Iron and Steel Industry Association believes that with the implementation of production reduction targets, the in-depth inspection of "returning" and the advancement of environmental protection inspections, the reduction of crude steel output will have a broader scope and the effect will be more obvious. Judging from the recent reduction in crude steel output, in June, the provinces where my country's crude steel output decreased more month-on-month were Hebei, Jiangsu, Liaoning, Shandong and Guangdong. In the first ten days of July, my country’s daily crude steel production level continued to accelerate downward. The provinces that reduced production more were Shanxi, Hubei, and Hebei; the companies that reduced production more were Baowu, Jianlong, Hegang, Xinhua Metallurgy, Shanxi Jinnan, etc. It shows that the task of suppressing production is being implemented, and the effect is beginning to show.

　　 In the second half of the year, my country’s steel demand growth will weaken accordingly. However, it cannot be ignored that my country’s iron ore prices continued to rise in the first half of the year and other raw materials and fuel prices have also generally risen. Steel companies’ costs have risen and their profit margins have been squeezed. The China Iron and Steel Association reminds that Chinese steel companies must closely follow market changes, further strengthen self-discipline, be alert to risks, optimize structures, and reduce costs, especially to reduce the purchase cost of raw materials, and strive to maintain the stability of the steel market and production and operation.