Steel mills and high levels of social inventory run. The supply and demand of the market spread to the circulation area, and the domestic steel inventory continued to grow at the end of last year. On March 15, the highest level was 22,520,000 tons, an increase of 3.51 million tons over the previous year, including 14.32 million tons of construction steel, accounting for 63.6 percent of the total inventory. Then, as seasonal consumption increased, inventory gradually fell, dropping to 15.4 million tonnes on July 26. Market supply exceeds demand has also pushed steel inventories, key enterprises in mid-march steel stock record, reached 14.51 million tons, up 29.7% from a year earlier, in late June fell to 12.68 million tons, still rose 29.9% from a year earlier, up 11.4% over the same period in 2012.
The profitability of the steel mills fell month by month. In the first half of 2013, the profit of metallurgical industry reached 73.69 billion yuan, up 13.7 percent year on year. The profit of ferrous metal smelting and rolling processing was 45.44 billion yuan, up 22.7 percent year on year. 1 - may focus on large and medium-sized iron and steel enterprises is much less than the industry overall profit level, and the monthly decline, despite the profit growth of 34%, but also only 2.8 billion yuan, return on sales of 0.19%. In may, the 86 key and medium-sized steel mills made profits of only 150 million yuan, five months on a month-on-month decline, with 34 losses and up to 40 percent of losses.
Investment in fixed asset investment in the steel industry dropped significantly. Between January and June 2013, the steel industry investment in the fixed assets of 303.5 billion yuan, up 4.3% from a year earlier, the black metal smelting and rolling investment 235.6 billion yuan, up 3.3% from a year earlier, down 6.1% than the same period in 2012; The black metal mining investment reached 679 billion yuan, up 7.8 percent year on year, and the growth rate fell by 15 percentage points