I. Crude steel production is nearly 20. The first decline since the year. From January to June, China’s crude steel, pig iron, and steel product output reached 409.971 million tons, 356.943 million tons, and 558.822 million tons, respectively, representing year-on-year declines of 1.3%, 2.3%, and an increase of 2.0%. For the first time in nearly 20 years, the nation’s crude steel production has declined.

　　 II. Steel exports surged significantly. In the first half of the year, the country’s steel exports totaled 52.4 million tons, an increase of 27.8% year-on-year; steel imports reached 6.65 million tons, a decrease of 8.2% year-on-year. The cumulative net steel exports for the first half of the year, converted into crude steel equivalent, amounted to 47.66 million tons, up by 12.79 million tons compared to the same period last year.

　　 3. Steel prices continue to hit new lows. In the first half of the year, the comprehensive steel price index fell from 83.09 points at the end of last year to 66.69 points by the end of June, a decline of 19.7%. So far this year, the decline in the comprehensive steel price index has already exceeded last year’s full-year decline.

　　 4. Iron ore prices and steel prices have diverged. Since April of this year, iron ore prices have rebounded upward. China’s iron ore price index has risen from $46.84 per ton on April 10 to $59.19 per ton by the end of June, representing an increase of as much as 26.4%. Meanwhile, the composite steel price index fell by 10.2% over the same period, creating a divergence between iron ore and steel price trends.

　　 V. Losses from core business activities have intensified. In the first half of the year, large and medium-sized steel enterprises achieved sales revenue of 1.5 trillion yuan, a decrease of 17.9% year-on-year; realized profits and taxes of 39.05 billion yuan, down 14.1% year-on-year; and reported total profits of 1.64 billion yuan. Meanwhile, their core business suffered losses totaling 21.68 billion yuan, an increase of 16.768 billion yuan compared to the same period last year. A total of 43 enterprises reported losses, accounting for 42.6% of the surveyed member enterprises; the output of these loss-making enterprises accounted for 36.8% of the total output of member enterprises. The total losses incurred by these loss-making enterprises amounted to 18.55 billion yuan, representing a year-on-year increase of 98.5%.

　　 Six, there is a clear divergence among enterprises. In the first half of the year, the top 10 profitable companies collectively earned a profit of 16.59 billion yuan, an increase of 113.1% year-on-year; the top 10 loss-making companies collectively incurred losses of 13.97 billion yuan, up 152.3% year-on-year.