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“Since this year, with the introduction of a series of policy measures to further expand domestic demand and promote economic growth, the iron and steel industry as a basic raw material for construction, automobile, machinery and other industries has shown signs of recovery.” Inspection by the Ministry of Industry and Information Technology, Raw Materials Industry Department Jia Yinsong said.

According to the latest data released by the Ministry of Industry and Information Technology, in the context of the decline of 37% in the production of crude steel in the first two months of the other 65 steel-producing countries in the world, China's crude steel production still achieved a 1.4% increase in the first quarter.

Investment pull effect has become increasingly apparent

“The positive signs in the operation of the industrial economy have gradually increased, initially reversing the momentum of rapid growth and decline, and some industries and regions have begun to shift to good directions.” Zhu Hongren, director of the Office of Supervision and Coordination of the Ministry of Industry and Information Technology, stated that in external demand Under the adverse situation of severe shrinkage, the state has introduced a series of policies and measures to “expand domestic demand, maintain growth, and adjust structure”.

It is understood that the country’s policy of expanding domestic demand has a significant pull effect on the basic raw material steel industry. For example, policies such as “home appliances going to the countryside” and “cars going to the countryside” have promoted the sales of related products, and have led to the development of steel products in these fields. Demand; for example, large-scale investment in the country’s infrastructure, such as railways, has led to a surge in heavy rail steel demand, which has increased by 146% in the first quarter compared to the same period last year.

Driven by this, from January to March this year, the country’s crude steel production was 12.744 million tons, an increase of 1.4% over the same period of last year. In March, the national average daily steel production was 1.455 million tons, which was an increase from the lowest level of 1.07 million tons of daily production in early November last year. 36%, but also higher than the national average daily output of 1.37 million tons last year.

Major foreign iron and steel enterprises are experiencing a significant reduction in production. January-February, the world's 65 major steel-producing countries except China's steel production was 88.65 million tons, a year-on-year decrease of 37.2%, China's share of steel production in the global market from January to February increased to 47.9%.

It can be said that "Compared with the sluggish global steel industry, the Chinese steel industry performed best in the first quarter," said Jia Yinsong, an inspector of the Department of Raw Materials Industry of the Ministry of Industry and Information Technology.

Significantly faster pace of structural adjustment

China is a big country in steel production and consumption. Crude steel production ranks first in the world for 13 consecutive years. However, due to extensive and long-term development of the steel industry, there are problems such as excess production capacity, large dependence on external products, and weak resource control. The international financial crisis further exacerbated these contradictions. Taking surplus production capacity as an example, in April, domestic steel prices fell again due to excessive recovery of production.

More than 1,000 steel mills in the country have made the steel production capacity extremely dispersed and disorderly competition among small and large steel mills. On the one hand, the international iron ore market prices have soared. On the other hand, the profit rate of the steel industry has been greatly reduced. Under the impact of the international financial crisis, the entire industry suffered a substantial loss. Statistics show that in the first two months of this year, the national steel industry turned from a profit of 25.5 billion yuan in the same period of last year to a loss of 770 million yuan.

In addition, China's steel production is still focused on high energy consumption, low value-added products, some high-value steel still rely on imports. According to the latest statistics from the Customs, in 2008 China's cumulative steel exports amounted to 59.23 million tons, with a total export value of US$63.4 billion. In 2008, China imported a total of 15.43 million tons of steel, and the cumulative import amount was US$ 23.4 billion. Imported steel is mainly concentrated in high value-added cold rolling, special thick plates, high-temperature alloy plates and other varieties. From the customs data, it can be calculated that the average price of imported steel products in China last year was more than 40% higher than that of exported steel products.

“The international financial crisis has brought great impact on the steel industry, but it has also become a good time for industrial restructuring.” Jia Yinsong said. Zhao Xia, deputy general manager of Baosteel Group, also believes that the international financial crisis has greatly reduced the cost of acquisitions and restructurings, which will help eliminate backward production capacity and accelerate industry consolidation.

In recent years, the pace of reorganization and merger of the steel industry has gradually accelerated. Based on the restructuring of Shaoguan Iron and Steel Group and Guangdong Steel Group, in March this year, Baosteel Group and Hangzhou Iron and Steel Group signed a reorganization of the Ningbo Steel Agreement, and Baosteel obtained a controlling share of 56.15% of Ningbo Steel with a total of RMB 2.0214 billion. Before this, Wuhan Iron & Steel reorganized Liugang to form Guangxi Iron and Steel Group, Tangshan Iron and Steel Group and Hebei Iron and Steel Group.

According to the statistics of the China Iron and Steel Association, in 2008, the 10 largest enterprise groups producing steel in China produced a total of 212,735,900 tons of crude steel, accounting for 42.5% of the total crude steel output, which was 5.71 percentage points higher than the previous year.

It is of great significance to adjust and revitalize the plan

In order to promote the steady and rapid development of the domestic steel industry, in mid-January, the State Council executive meeting reviewed and approved in principle the adjustment and revitalization plans for the steel industry, and related rules were also announced in March.

“Adjustment and rejuvenation planning is playing an important role in promoting the development of the steel industry.” Chi Jingdong, deputy secretary-general of the China Iron and Steel Association, believes that planning not only focuses on the current situation, but also focuses on the long-term development of the industry. Adjust the structure and promote upgrades.

In terms of control of total volume and promotion of restructuring, in addition to explicitly encouraging the joint reorganization of Baosteel, Wuhan Iron and Steel and Anshan Iron and Steel Company, the planning rules, regional restructurings such as Shandong Iron and Steel Group and Shanxi Iron and Steel Group are also planned. In 2011, the country formed a number of large iron and steel enterprises, such as Baosteel Group, with production capacities of over 50 million tons, which have strong international competitiveness; and several large-scale iron and steel enterprises with production capacities ranging from 10 to 30 million tons. The proportion of domestic top five steel companies' production capacity accounts for more than 45% of the country's total production capacity, and the proportion of production capacity of the coastal Yanjiang iron and steel enterprises accounts for more than 40% of the national production capacity. Jia Yinsong said that at present, the Ministry of Industry and Information Technology has, together with related departments, studied the initiation of the formulation of merger and reorganization regulations for the steel industry.

In eliminating backward production capacity and promoting industrial upgrading, the plan has new requirements for the elimination of backward production capacity: By the end of 2010, we will eliminate 53,400,000 tons of blast furnaces with a capacity of 300 cubic meters or less, 3.2 million tons of converters with a capacity of 20 tons or less, and electric furnaces; By the end of 2011, 400 cubic meters or less of blast furnaces, 30 tons or less of converters and electric furnaces will be eliminated, and 72 million tons of outdated ironmaking capacity and 25 million tons of steelmaking capacity will be eliminated. Jia Yinsong revealed that the Ministry of Industry and Information Technology is currently investigating the backward production capacity of steel.

In addition, in order to promote steel exports, starting from April 1, China has increased the export tax rebate for 59 steel products from 5% to 13%. Jia Yinsong revealed that the National Development and Reform Commission and the Ministry of Industry and Information Technology will release local technological transformation project plans to promote enterprises to increase technological transformation and enhance product competitiveness.

With the announcement of the adjustment and revitalization plan, steel-producing provinces such as Hebei, Shanxi, and Shandong are also stepping up efforts to formulate relevant plans to accelerate the integration of steel enterprises in the province. Shanxi Province proposed in the “Shanxi Province Metallurgical Industry Adjustment and Revitalization Plan” that by 2015, more than 200 steel enterprises in the province will only be retained to 10 or less, and Taigang Group will adopt a large-scale joint reorganization from the current 10 million tons. Level, jumped to 30 million tons. By the end of 2011, Shanxi will eliminate 20 million tons of backward iron-making capacity and 16 million tons of steelmaking capacity.

Relevant experts believe that this year will be a turning point in the development of China's steel industry, and the steel industry will shift from rapid growth to stable development. The steel industry can only take advantage of favorable opportunities, turn risks into opportunities, change from passive to active, and accelerate the structural adjustment and industrial upgrading so as to get out of the predicament as soon as possible, achieve stable development, and promote the transformation of the steel industry from big to strong. (

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