China Steel Association: steel consumption growth exceeds expectations this year
Benefited from the rapid recovery of the national economy, the demand for steel and a series of tax reduction and fee reduction policies issued by the state during the epidemic period, the overall performance of the national steel industry this year was better than expected, but the unstable and uncertain factors faced in the future increased significantly, so we should be relatively cautious in expanding production and ensuring supply. This is the analysis made by Luo Tiejun, vice president of China Iron and Steel Association, at the 2021 coal, steel and coke medium and long term contract negotiation meeting held here a few days ago. According to the data, in the first 10 months of this year, China's crude steel output was 874 million tons, a year-on-year increase of 5.5%; pig iron output was 742 million tons, a year-on-year increase of 4.3%. Except for the negative growth in March, steel production remained positive growth in other months.
Strong demand to pull steel production high operation at the same time, led to a substantial increase in steel imports. In the first 10 months, China's steel imports increased by 74% year-on-year, and steel exports decreased by nearly 20% year-on-year. Since June, a phased net import of crude steel has been formed.
Luo Tiejun said that this year's steel consumption growth is unexpected, and this consumption intensity is abnormal. We should be rational and not overly optimistic. We should be relatively cautious in expanding production and ensuring supply.
In addition, as the prices of raw materials for iron and steel production, such as iron ore, coke and scrap steel, have risen significantly and remained at a high level. Although the benefits of the iron and steel industry are better than expected, they are still significantly lower than the average profit margin of the national industrial industry, and the profitability sustainability of the industry is facing a test.
Due to the growth of the steel industry, the flange industry is facing new challenges.
