In 2021, the iron and steel industry will continue to deepen the supply side structural reform, further consolidate the achievements of iron and steel de capacity, promote the green and low-carbon transformation of the industry, actively respond to the changes of domestic and foreign demand situation, actively maintain supply and price stability, maintain the safety and stability of the industrial chain supply chain, and the overall operation trend of the industry is good, laying a good foundation for the high-quality development of the industry.


First, the output of crude steel was high before and low after, with a cumulative year-on-year decrease. In the first half of the year, driven by domestic and foreign demand, the country's cumulative crude steel output was 563 million tons, a year-on-year increase of 11.80%, a record high in the same period. In the second half of the year, with the implementation of national regulation and control policies, the excessive growth of steel production was effectively curbed. Since July, crude steel production has maintained a year-on-year decline for six consecutive months. The annual cumulative crude steel output was 1.033 billion tons, a year-on-year decrease of about 32 million tons, a decrease of 3.0%. The cumulative apparent consumption of crude steel was about 992 million tons, a year-on-year decrease of 5.3%.


Second, iron ore prices continued to rise in the first half of the year and fell in the second half of the year. The price of imported iron ore rose sharply in the first half of the year, reaching an all-time high of $230.59/ton on May 12, which greatly deviated from the fundamentals of supply and demand and seriously affected the stable operation of the iron and steel industry. In the second half of the year, with the decline of steel production driving the reduction of iron ore demand, iron ore prices fell significantly. The total import of iron ore in the whole year was 1.12 billion tons, a year-on-year decrease of 3.9%, and the average price was US $164 / ton, a year-on-year increase of 55.3%.


Third, the fluctuation of steel prices rose, and the high correction began in the fourth quarter. Since the beginning of this year, affected by the sharp rise in the prices of raw fuels such as iron ore and coking coal, the price of steel has been rising all the way in the first half of the year. In mid May, the comprehensive price index of domestic steel reached 174.81 points, a record high. Subsequently, the high price of steel was corrected, especially since the fourth quarter. Affected by the reduction of demand, the price of steel fell sharply. By the end of 2021, the comprehensive price index of domestic steel was 131.70 points, 24.7% lower than the highest point in 2021. The annual average index was 142.03 points, up 36.46 points year-on-year.


Fourth, the total export volume of steel was higher than that of last year and fell month by month in the second half of the year. Affected by the rapid recovery of foreign demand and the sharp rise of international steel prices, China's steel exports rebounded sharply in 2021 after five consecutive years of decline. In the first half of the year, the export of steel continued to grow. China's total export of steel was 37.38 million tons, a year-on-year increase of 30.2%; A total of 7.35 million tons of steel were imported, a year-on-year increase of 0.1%. With the cancellation of export tax rebates and other policies, steel exports have continued to decline month on month since July. In the whole year, 66.9 million tons of steel were exported, with a year-on-year increase of 24.6%; A total of 14.27 million tons of steel were imported, a year-on-year decrease of 29.5%.


Fifth, the sales profit margin has improved significantly, and the industry benefit has reached a record high. Affected by the overall improvement of the national economy, the rise of global commodity prices and other factors, the benefits of the iron and steel industry showed a trend of high before low in 2021, and the benefits of the iron and steel industry reached an all-time high. In the whole year, the accumulated operating revenue of key large and medium-sized iron and steel enterprises was 6.93 trillion yuan, a year-on-year increase of 32.7%; The total accumulated profit was 352.4 billion yuan, a year-on-year increase of 59.7%, a record high; The sales profit margin reached 5.08%, 0.85 percentage points higher than that in 2020.