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I. Quantity analysis of industry enterprises
According to data, as of the end of December 2018, China's iron and steel industry above the scale of 5,138 enterprises. Among them, the number of loss-making enterprises in the steel industry reached 1100 at the end of December 2018, with a loss area of 21.4%; By the end of November 2019, there were 5,173 enterprises above designated size in China's steel industry. As can be seen from the change of the number of enterprises above the scale, with the advance of the industry's supply-side reform, the steel enterprises decreased rapidly and tended to stabilize in 2019.
Second, industry market size analysis
Under the joint action of supply-side structural adjustment, environmental supervision, and strong market demand, steel prices in 2018 run at a high level, the price of imported iron ore remained basically stable, and the industry efficiency reached the best level in history. In 2019, due to the accelerated growth of steel production, steel prices fluctuated in a narrow range downward trend, iron ore and other raw fuel material prices rise and other factors, the economic benefits of steel enterprises fell sharply. In 2019, the sales revenue of iron and steel enterprises of China Iron and Steel Association increased by 10.1% year on year. Realized profit declined 30.9% year on year.
Production and marketing of the steel industry
Since the reform and opening up, China's iron and steel industry has developed rapidly, and its steel output has increased rapidly and ranks first in the world for many years. Since 2009, China's steel output has shown an increasing trend, but after 2015, the steel output has declined. China's steel output reached 1204.774 million tons in 2019, up 9.0 percent year on year.
China's steel supply and demand will basically balance in 2019. Compared with 2018, the cumulative sales volume of the four quarters in 2019 increased. By the fourth quarter of 2019, China's steel sales volume had reached 1189.672 million tons, up 9.2% year on year. From the steel production and sales rate cumulative value, 2019 basically stable at more than 99%.
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