Analysis of China's crude steel output in 2022

Ⅰ. In June, China's crude steel average daily output was 3.024,300 tons, down 3.0% month-on-month

According to the National Bureau of Statistics, China's crude steel output in June 2022 was 90.73 million tons, a decrease of 3.3% year-on-year; Pig iron output was 76.88 million tons, an increase of 0.5% year-on-year; Steel products output was 118.42 million tons, a decrease of 2.3% year-on-year. Graphite electrode products are widely used in metallurgy, chemical, machinery and other industries, and can be customized on demand. 

From January to June 2022, China's crude steel output was 526.88 million tons, a  decrease of 6.5% year-on-year; Pig iron output was 438.93 million tons, a decrease of 4.7% year-on-year; Steel products output was 667.14 million tons, a decrease of 4.6% year-on-year. 

In June, China's crude steel average daily output was 3.0243 million tons, down 3.0% month-on-month. Due to the weak demand performance in June and the continuous accumulation of steel inventory, the steel market experienced a sharp decline in the second half of this month. Most domestic steel plants lost money or were on the edge of profit and loss, and gradually expanded the scope of production reduction and maintenance.

Ⅱ. In the first half of the year, China's crude steel apparent consumption was 501million tons, down 6.9% year-on-year

According to the data of the Bureau of Statistics and the General Administration of Customs, in June 2022, China's crude steel output was 90.73 million tons, steel products net export was 6.766 million tons, equivalent to 7.048 million tons of crude steel net export (steel is converted at 0.96), billets and ingots net import was 143000 tons, and the crude steel apparent consumption was 83.83 million tons, a decrease of 6.6% year-on-year. (Note: in June 2021, China's crude steel output was revised to 93.826 million tons, and crude steel apparent consumption was revised to 89.71 million tons.)

From January to June 2022, China's crude steel output was 527 million tons, the steel products net export was 27.69 million tons, equivalent to 28.844 million tons of crude steel net export (steel is converted at 0.96), billets and ingots net import was 2.967 million tons, and the crude steel apparent consumption was 501 million tons, a decrease of 6.9% year-on-year. (Note: from January to June 2021, China's crude steel output was revised to 564 million tons, and crude steel apparent consumption was revised to 538 million tons.)

Ⅲ. In June, steel bars average daily output decreased significantly month-on-month

In terms of steel varieties, China's steel output was 667 million tons from January to June 2022, a decrease of 4.6% year-on-year, among which, steel bars output was 118 million tons, a decrease of 14.1% year-on-year; steel wire output was 71.382 million tons, a decrease of 13.8% year-on-year; The cold rolled sheet output was 21.407 million tons, with a increase of 0.4% year-on-year; Medium thickness steel strip output was 96.003 million tons, a increase of 1.3% year-on-year; Welded steel pipes output was 27.403 million tons, a decrease of 4.7% year-on-year.

In June 2022, the average daily output of steel bars, medium thickness steel strips and other products was 669000 tons and 565000 tons, down 37000 tons and 6000 tons respectively from the previous month; The average daily output of steel wire, cold rolled sheet and welded steel pipe was 435000 tons, 126000 tons and 176000 tons, an increase of 3000 tons, 5000 tons and 2000 tons respectively from the previous month. With the further expansion of production reduction in July, the daily average output of major steel varieties is expected to continue to decline.

Ⅳ. In June, North China, central China and other regions of crude steel daily output decreased significantly month-on-month

By region, from January to June 2022, North China crude steel output was 170 million tons, a decrease of 6.6% year-on-year; East China crude steel output was 164 million tons, a decrease of 5.5% year-on-year; Northeast China crude steel output was 49.3 million tons, a decrease of 7.2% year-on-year; Central China crude steel output was 50.303 million tons, a decrease of 7.4% year-on-year; South China crude steel output was 37.407 million tons, down 1.4% year-on-year; Southwest China crude steel output was 31.436 million tons, a decrease of 15.7% year-on-year; Northwest China crude steel output was 24.526 million tons, a decrease of 3.3% year-on-year.

In June 2022, crude steel average daily output in North China, Central China, South China and Northwest China was 1,022,000 tons, 266,000 tons, 203,000 tons and 141,000 tons, a decrease of 54000 tons, 36000 tons, 13000 tons and 9000 tons respectively compared with the previous month; Crude steel average daily output in East China, Northeast China and Southwest China 930,000 tons, 284,000 tons and 178,000 tons, an increase of 6000 tons, 12000 tons and 2000 tons respectively from the previous month. About steel market analysis and prediction, feel free to contact us.