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Analysis on China's Steel Production and Investment Performance in H1, 2014(Part One)

I. Overview of investment in steel industry in H1, 2014

China’s steel industry, including ferrous metals mining and dressing industry, ironmaking industry, steelmaking industry and steel-processing industry (foundry and ferroalloy industries were not taken into account), posted planned investment of 1195.043 billion yuan in projects under construction in the first half of this year, with the year-on-year growth recorded at -4.23 percent, compared to 4.71 percent in the same period of 2013. The industry realized fixed asset investment of 237.507 billion yuan in the first six months, up -7.08 percent from a year earlier, indicating a steep fall from a 5.88 percent gain registered in the same period last year.


The investment in ironmaking industry in January-June 2014 slipped 41.01 percent year on year; that in steel-processing industry fell 12.62 percent year on year; that in steelmaking industry lost 6.51 percent year on year. Only the ferrous metals mining and dressing industry posted a year-on-year growth of 10.83 percent during the given period. The aggregate rate of decline in ironmaking, steelmaking and steel-processing industries in the first half of the year narrowed from that in January-May 2014 and the growth in ferrous metals mining and dressing industry also slowed from the first five months.


There were 1,992 new projects in China’s steel industry in the first half of the year, down 290 from the corresponding period of 2013. The number of projects in steel-processing and steelmaking industries decreased 121 and 70 respectively. The ferrous metals mining and dressing and ironmaking industries also posted a drop.


The share of investment in steel-processing, ironmaking and steelmaking industries declined further while that in ferrous metals mining and dressing industry saw a big rise. In the first half of 2014, steel-processing industry achieved investment of 111.644 billion yuan, accounting for 47.01 percent of the total investment amount in China’s steel industry (the share was down 2.98 percentage points compared to that in the same period of 2013). Steelmaking industry realized investment of 42.233 billion yuan, taking up 17.78 percent (the share was down 0.12 percentage points). Investment in iron-making industry amounted to 8.38 billion yuan, a share of 3.53 percent, which was down 2.03 percentage points from January-June 2013. The share of investment in ferrous metals mining and dressing industry, totaling 75.249 billion yuan, was 31.68 percent, a gain of 5.13 percentage points from the same period last year.