According to the data of the Allied Metallurgical Chamber of Commerce, the supply and demand of China's steel market will be basically balanced in 2019. It is estimated that the annual output of steel will be 995 million tons, an increase of 67 million tons and an increase of 7% over 2018; the output of pig iron will be 800 million tons, an increase of 3.8% over the same period last year; The annual output of steel is expected to be 1.2 billion tons, a year-on-year increase of 9.1%.

Wang Lianzhong, executive deputy secretary-general of the Allied Metallurgical Chamber of Commerce, said that in the next step, the steel industry will further make full use of market and legal means to promote the merger and reorganization of steel companies, increase the concentration of the industry, increase the reform of mixed ownership, and strengthen the market vitality of the steel companies and the international Competitiveness.

From the perspective of private enterprises, from January to October 2019, private steel companies produced 506 million tons of steel, an increase of 11.14% year-on-year, accounting for 61.04% of the national steel output; pig iron output was 380 million tons, an increase of 8.3% year-on-year, accounting for national iron production 56.3%; steel production was 705 million tons, an increase of 13.48% year-on-year, accounting for 70% of the country's steel. The production of private enterprises has shown a stable, stable, rising and controlled situation. In this context, it is expected that the annual steel output of private steel companies in 2019 will be about 600 million tons, an increase of 9.69% year-on-year, accounting for about 60.3% of the country. The output of steel was 860 million tons, a year-on-year increase of 15.18%.

From the perspective of industry profits, it is estimated that the industry will realize a profit of 240.5 billion yuan in 2019. Among them, private steel companies are expected to realize a profit of 158 billion yuan, accounting for 66% of the total profit of the steel industry. In terms of ton steel profits, Shandong Shiheng Special Steel, Hebei Puyang Iron and Steel, and Jiangxi Western Special Steel have the highest ton steel profits, reaching 995 yuan, 690 yuan, and 613 yuan, respectively.

Wang Lianzhong said that due to unfavorable factors such as the rise in imported iron ore prices and the decline in steel product prices in 2019, the profits of steel companies fell by nearly 40%, but fundamentally, it is difficult for the industry to support high profit margins for a long time, and the economic benefits tend to be in a reasonable range.