Output value has reached the highest level ever before. In the period from 2016 to June, the country produced 390 million tons of crude steel, an increase of 7.4% over the same period of last year, an increase of 5.6 percentage points over the same period of last year. In the first 6 months, the daily output value of crude steel was 2 million 154 thousand tons, equivalent to the annual output of crude steel of 7.86 million tons. Meanwhile, it reached a pre-record high of 2.28 million tons in February and remained at a higher level of over 2.1 million tons in March-June despite a decline. From January to June, the output value of crude steel in Hebei and Jiangsu provinces increased by 6.8% and 13.2% respectively, accounting for 42.4% of the increase of 26.94 million tons in China. The output of Shanxi, Liaoning, Henan and Yunnan provinces also increased by more than 1 million tons. From January to June, the crude steel output value of key large and medium-sized iron and steel enterprises increased by 5.5% year-on-year, which is lower than the national average growth rate of 2 percentage points, but still 60% of the increase comes from key large and medium-sized iron and steel enterprises.
The sale price of steel is low. In 2016, 1-6, the domestic steel shopping malls were depressed. With the release of crude steel production capacity, market supply and demand fell into imbalance, steel prices into a downward channel, has been weakly down for more than four months. As of July 26, 2016, the steel price index dropped to 100.48 points, down from 6.6 in the year. The prices of the eight steel grades calculated by the iron and Steel Industry Association have all declined to varying degrees over the year, with an even drop of 5.7%. In terms of categories, the prices of construction wire rods and screw bars, which account for a large proportion of China's steel output value, fell by 4.9% and 6.7% respectively, while those of medium and heavy plates and hot rolled coils dropped by 5.7% and 9.7% respectively.
Steel sales and exports increased rapidly. The imbalance between supply and demand of domestic steel shopping malls affects the export of enterprises. From January to June, China exported 3.69 million tons of steel, adding 12.6% year-on-year; imported 6.83 million tons of steel, down 1.8%; imported billets and ingots 320,000 tons, adding 50%. The billet was converted into crude steel, with a total net export of 25.06 million tons, adding 17.3% over the same period, accounting for 6.4% of China's crude steel output value. In terms of export prices, the average export price of rods and wires in January-June was 624.3 US dollars per ton, down 18% compared with the same period of last year, and that of sheet metal was 835.2 US dollars per ton, down 2.8% compared with the same period of last year.
Steel sales

Steel mills and social inventories are running at a high level. The contradiction between supply and demand in the market extends to the circulation field, and domestic steel stocks continue to increase at the end of last year. On March 15, it reached a record high of 22.52 million tons, an increase of 3.51 million tons over the previous year's peak, during which 14.32 million tons of steel was built, accounting for 63.6% of the total inventory. After that, with seasonal consumption, inventory gradually dropped, and dropped to 15 million 400 thousand tons in July 26th. Shopping malls oversupply also pushed steel stocks higher. In mid-March, key enterprises'steel stocks reached a record of 14.51 million tons, an increase of 29.7% over the same period last year, and dropped to 12.68 million tons in late June, still adding 29.9% over the year before and 11.4% over the same period in 2012.
The surplus level of steel mills is declining month by month. In the first half of 2016, the metallurgical profession completed a profit of 73.69 billion yuan, an increase of 13.7 percent over the same period of the year. During this period, the ferrous metal exercise and calendering industry completed a profit of 45.44 billion yuan, an increase of 22.7 percent over the same period of the year. From January to May, the surplus of key large and medium-sized iron and steel enterprises was far lower than the overall occupational level, and showed a monthly downward trend. Although the completion profit increased by 34%, but only 2.8 billion yuan, the sale profit rate was 0.19%. In May, 86 key large and medium-sized steelmakers made a profit of only 150 million yuan, falling for five consecutive months, with 34 losing money, with a loss of up to 40%.
The increase in investment in fixed assets of iron and steel industry has dropped markedly. In the period from 2016 to June, the fixed assets of iron and steel industry contributed 303.5 billion yuan, an increase of 4.3% over the same period of the year. During this period, the investment of ferrous metal exercise and calendering was 235.6 billion yuan, an increase of 3.3%, a decrease of 6.1 percentage points over the same period of 2012. The investment of ferrous metal mining was 67.9 billion yuan, an increase of 7.8%, a sharp drop of 15 percentage points.