China’s steel output at 1.05 billion t for 2020, accounts for 58% of the global steel output

[xizhimen]

CONF: China’s steel output at 1.05 billion t for 2020, accounts for 58% of the global steel output

Source：MysteelDec 21, 2020 09:45See Full-size Table Here

China Crude Steel Art Abyss
https://www.steelguru.com/author/strategic-research-institute
China’s crude steel output will probably reach 1.05 billion tonnes for 2020, or having maintained an average growth of 50 million tonnes/year in recent years, and its share in the global steel output will rise to 58% from the 53% for 2019,

Luo Tiejun, vice chairman of China Iron & Steel Association (CISA), shared with delegates of Mysteel Annual Summit on December 19 in Shanghai.

The high steel production this year has been driven by strong demand, he emphasized, sharing that against the 5.5% on-year growth in China’s crude steel output over January-November, the country’s apparent crude steel consumption is estimated to have grown by 9.8% on year to 950 million tonnes in the first 11 months of 2020. “Actually,

Unprecedented steel demand in China pushed steel mills to increase daily crude steel output to a record high of 3.09 million tonnes a day in September 2020, which started tapering in in October 2020 to 2.97 million tonnes a day and 2.92 million tonnes a day in November 2020 as with the onset of winters in North China resulted in output restrictions forcing many steel mills to undertake maintenance. However, as the steel realization is very strong, daily crude steel output in December 2020 is likely to remain above 2.9 million tonnes a day, meaning we could witness China producing record 1.05 billion tonnes of crude steel in 2020, up by about 5% YoY, despite crude steel production shrinking to 79.9 million tonnes in January, 74.77 million tonnes in February and 78.97 million tonnes in March, when COVID19 spread had slowed down activities.

CONF: China’s steel output at 1.05 billion t for 2020 | Mysteel Global

www.mysteel.net

 

[xizhimen]

In 1949, the year the PRC established, China's steel output was 158,000 tons, accounted for 0.1% of the world total steel output. India produced around 1 million tons steel around the same time.
Back then the output of steel was the single most important indicator of a country's overall industrial development level. it shows how far China was behind in the world.

 

[xizhimen]

China makes first step towards taking control of world copper market, consumes over half of the world copper supply
By Robin Bromby
-November 20, 2020

China consumes more than half of the world’s copper supply

China has rolled out a yuan-denominated copper futures contract open to foreign traders — a move that is being seen as an attempt to prise open the London Metal Exchange’s (LME) domination of trading in the red metal.

It is also a clear signal that China is pushing ahead with plans for full internationalisation of the yuan.

The new futures contract began trading on Thursday (19 November).

Beijing wants to be a price-maker, not a price-taker, especially when it is largely dependent on imports for any commodity.

It should be assumed that its goal is eventually to have the yuan price dominating copper trading, not the greenback.

News reports have quoted copper suppliers expecting to be dealing in yuan rather than dollars down the track.

In 20 years, China has grown from consuming 12% of the world’s copper supply to using more than half of it now.

The Shanghai trade contract is not the city’s first copper instrument — but is the first international one.

Copper is the world’s most traded metal
While the existing copper contract put in place was tradeable only by Chinese investors, the new one will be available to foreigners, bringing in a potentially larger number of trades.

It is also significant because copper is the world’s most traded metal.

While Beijing’s other attempts to gain footholds in commodities trades — a yuan-denominated crude futures contract, the Shanghai Gold Exchange and iron ore contracts traded in the northern city of Dalian — have made progress, this is the first venture into the LME’s territory.

So far as one can see, China — which has managed to dominate the processing of many commodities (think graphite, rare earths, tungsten, tin, antimony, among many) — is now clearly looking at controlling the supply and trading of commodities.

The new copper contract is traded through the Shanghai International Energy Exchange (INE), the exchange that also operates China’s crude oil futures trading.

The INE is a subsidiary of the Shanghai Futures Exchange.

China copper futures uses same system as LME
Copper traded under the new futures contract will be free of taxes and customs duty — and with the copper having to be delivered into bonded warehouses, just as the LME operates.

The INE crude contract has clearly shown China the potential of engaging with the international futures market.

While it is still well behind the West Texas Intermediate (WTI) and Brent benchmarks in terms of market clout, the contract’s trading has increased substantially in its first two years of operation and attracted foreign participants.

However, China accounts for only 15% of global crude oil consumption. This could be one reason why the INE crude contract remains still a bit-player, with many other Asian countries still working on WTI or Brent as their oil price guidelines.

Copper is quite a different kettle of fish.

The country’s influence on copper is likely to grow to a much greater extent than its one on crude oil.

Yuan to supplant greenback
Not only does the move give China some pricing power, it being the world’s biggest importer, it extends the international role of the yuan (and diminishes that of the US dollar by the same degree).

It helps, too, that the red metal’s “Dr Copper” moniker gives the metal a particularly high profile as investors use it to assess economic health.

One commentator described the new copper contract as “the country’s first, and perhaps most dramatic, endeavour in international futures markets”.

This is because of its impact on the yuan as an international currency is just as vital to Beijing as its ability to put a lid on copper prices.

China wants to make increase the yuan’s convertibility and for this it needs what one banker described as the “availability of deep, liquid markets for financial products”.

Hong Kong controls LME
The yuan being an equal to the US dollar on international markets is a high priority for the Chinese leadership.

The LME has been in operation for 147 years.

It is wholly owned by HKex, the Hong Kong based operator of the Hong Kong Stock Exchange and the Hong Kong Futures Exchange

HKex’s website’s home page proclaims its mission as “reshaping the global market landscape”.

As we have seen in the past few months, Beijing is tightening its control of Hong Kong’s politics and economy.

And Beijing is also in the business of “reshaping the global market landscape”.

China makes first step towards taking control of world copper market

China has rolled out a yuan-denominated copper futures contract open to foreign traders — a move that is being seen as an attempt to prise open the London Metal Exchange’s (LME) domination of trading in the red metal.

smallcaps.com.au

 

[xizhimen]

Alumina and aluminum
Alumina is the common name for aluminum(III) oxide. It is used to produce aluminum metal. Aluminum ranks number one in the consumption volumes among all base metals, and is expected to strengthen its dominant position as a key structural material in the coming years. The increasing global demand for aluminum continues to be driven by China in 2018. The country made up more than half of the primary aluminum consumption worldwide in 2019, fourfold the share of the second-placed Middle East, and was also the largest aluminum smelter producer worldwide by a wide margin.

 

[xizhimen]

China's 2020 steel output tops 1 billion tonnes for first time: report

11:02, 23-Dec-2020

China's crude steel output is forecast to top 1 billion tonnes, and consumption is likely to reach over 980 million tonnes in 2020, both hit record high, said a recent report by the China Metallurgical Industry Planning and Research Institute.

In the first ten months of this year, the production of crude steel nationwide was 874 million tonnes, a 5.5 percent year on year increase. The number is expected to climb to 1.05 billion for the full year, 5.4 percent higher compared to the previous year, according to the industry report.

"The steel industry has played a vital role in supporting China's economic recovery," said the institute's chief engineer Li Xinchuan, adding that the construction, machinery, and energy sectors have used more metal, driven by a raft of government policies that promote investment and steady growth.

From a global perspective, steel consumption in other regions outside Asia will present a downward trend in 2020, according to a separate report by the institute on forecasting global steel demand.

"In 2020, steel consumption in Asia will rise against the trend, mainly because China's steel consumption increased by 9.6 percent year on year, which supported the year-on-year 1.7 percent growth of steel consumption in Asia," said Li.

China's steel consumption use is estimated to rise 1 percent to 991 million tonnes in 2021, according to the report.

China's 2020 steel output tops 1 billion tonnes for first time: report

news.cgtn.com

 

[Cabatli_TR]

Top 10 steel-producing countries​
Rank​	Country​	2019 (Mt)​	2018 (Mt)​	%2019/2018​
1​	China	996.3​	920.0​	8.3​
2​	India	111.2​	109.3​	1.8​
3​	Japan	99.3​	104.3​	-4.8​
4​	United States	87.9​	86.6​	1.5​
5​	Russia (e)	71.6​	72.0​	-0.7​
6​	South Korea	71.4​	72.5​	-1.4​
7​	Germany (e)	39.7​	42.4​	-6.5​
8​	Turkey	33.7​	37.3​	-9.6​
9​	Brazil	32.2​	35.4​	-9.0​
10​	Iran (e) (1)	31.9​	24.5​	30.1​

(e) - annual figure estimated using partial data or non-worldsteel resources.

 

[Cabatli_TR]

 

[adenl]

Top 10 steel-producing countries​
Rank​	Country​	2019 (Mt)​	2018 (Mt)​	%2019/2018​
1​	China	996.3​	920.0​	8.3​
2​	India	111.2​	109.3​	1.8​
3​	Japan	99.3​	104.3​	-4.8​
4​	United States	87.9​	86.6​	1.5​
5​	Russia (e)	71.6​	72.0​	-0.7​
6​	South Korea	71.4​	72.5​	-1.4​
7​	Germany (e)	39.7​	42.4​	-6.5​
8​	Turkey	33.7​	37.3​	-9.6​
9​	Brazil	32.2​	35.4​	-9.0​
10​	Iran (e) (1)	31.9​	24.5​	30.1​

(e) - annual figure estimated using partial data or non-worldsteel resources.

Surprisingly, Turkey isn't that far behind Germany.

 

[Cabatli_TR]

Surprisingly, Turkey isn't that far behind Germany.

If we agreed to purchase British Steel factory, the annual production figures would have been much higher. Unfortunately, Oyak realized that BS won’t give much profit to company in following years so British steel was sold to Chinese bidder.

 

[xizhimen]

All 100% of China's steel production is consumed by China domestically, this is crazy... infrastructure, infrastructure and infrastructure...

 

[xizhimen]

NBS: China’ 2020 crude steel output hits 1.05 billion t​

Source：MysteelJan 18, 2021 15:00

Just as expected, China’s crude steel output had exceeded 1 billion tonnes for 2020, approximating 1.05 billion tonnes or up 5.2% on year, according to the latest release by the country’s National Bureau of Statistics (NBS) on January 18.

The on-year growth was 3.1 percentage points lower than that for 2019, as the battle against the COVID-19 for most of the first quarter of 2020 affected the steel output and demand to some extent, Mysteel Global noted.
However, China’s crude steel production had posted on-year gains since April and the pace picked up in the latter months, mainly as the domestic demand recovered substantially since the second quarter of 2020 with the resumption of economic and industrial activities and Beijing’s investments in infrastructures as part of the economic rescue efforts.

For December alone, China produced 91.3 million tonnes of crude steel, up 7.7% on year, and the daily output also recovered 0.7% on month after having retreated on month for October-November, Mysteel Global calculated based on NBS’s data.

For finished steel, the production for the whole 2020 grew more substantially by 7.7% on year to 1.3 billion tonnes, and the December output alone reached 120.3 million tonnes, which jumped 12.8% on year as against the 10.8% on-year growth for November, according to NBS data.

The strong performance in the country’s finished steel output matched the overall enthusiasm among the Chinese steel producers to maintain high finished steel output most of the time last year on the positive steel margins due to the robust demand first at home and then from abroad in the latter half of 2020 on the ease of the impact of the COVID-19, Mysteel Global noted.

Mysteel’s steel pricing assessments backed up the rationale, as China’s national price of HRB 400 20mm dia rebar surged Yuan 696/tonne ($107.3/t) on year to a 25-month high of Yuan 4,579/t on December 22, and that of the Q235 4.75mm hot-rolled coil (HRC) soared by Yuan 1,115/t on year to Yuan 4,994/t on the same day, or a new high since Mysteel started the latter’s assessment in July 2010, both including the 13% VAT.

Robust demand also saw China’s finished steel stocks empty to the pre-pandemic “normal” level by the end of 2020, and stocks of five major finished steel products comprising rebar, wire rod, hot-rolled coil, cold-rolled coil and medium plate at the commercial warehouses in China’s 35 cities, for example, totalled 8.4 million tonnes, or up just 2% on year.

Chin’s steel exports grew on month for the fourth month by December to 4.85 million tonnes, up 10.2% on month or 3.5% higher on year, as reported.

NBS: China’ 2020 crude steel output...

Just as expected, China’s crude steel output had exceeded 1 billi...

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