The most popular three high pressure overcapacity

2022-08-07
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The "three highs" put heavy pressure on overcapacity, which has become a fatal injury to the iron and steel industry

the daily output of crude steel is 2.13 million tons, a record high; Sales profit margin 0.28%; The profit decreased month by month. In March, it was only 267million yuan, with a loss of 45.3%. In the first quarter of this year, although the steel industry successfully turned losses into profits, this group of data that set the highest or lowest record is still eye-catching

it was learned from the second information conference of China Iron and Steel Industry Association in 2013 that since the beginning of this year, while the main iron and steel industry has significantly reduced its losses, high output, high inventory and high ore prices are still lingering

zhujimin, executive vice president of CISA, said that with the arrival of the peak demand season in the second quarter and the beginning of the new government, the steel market demand will improve. However, due to the rapid release of production capacity and the great pressure of cost rise, the situation of high cost and low profit of steel enterprises is difficult to change in a short time, and overcapacity is the primary difficulty of the current steel industry

final loss reduction of main businesses

according to the data of the National Bureau of statistics, the national production of pig iron, crude steel and steel (including repeated materials) in the first quarter was 178.23 million tons, 191.89 million tons and 245.51 million tons respectively, with a year-on-year increase of 7.6%, 9.1% and 12.3% respectively, an increase of 4.4, 6.6 and 5.8 percentage points over the same period last year. Among them, the crude steel production of member enterprises increased by 5.8% year-on-year, 3.3 percentage points lower than the national growth rate

in terms of import and export, according to Chinese customs statistics, China exported 14.43 million tons of steel in the first quarter, an increase of 18.8% year-on-year; The total imported steel was 3.23 million tons, a year-on-year decrease of 5.3%, and the imported steel billet was 150000 tons, a year-on-year increase of 38.6%; The total net export of billets converted into crude steel was 11.76 million tons, a year-on-year increase of 2.57 million tons, an increase of 28%; The import of iron ore was 186.48 million tons, a year-on-year decrease of 40000 tons, basically the same as that of the previous year

under the restriction of high output, the steel price shows a low recovery trend. By the end of February, CSPI steel comprehensive price index of iron and Steel Association was 111.12 points, up 5.81 points or 5.52% from 105.31 points at the beginning of the year, but down 7.35 points or 6.2% year on year. In March, the steel price showed a downward trend. By the end of March, the steel price index was 107.05 points, down 4.07 points, or 3.66%, for five consecutive weeks

in the past 2012, China's main iron and steel industry suffered a large loss. The main profit of large and medium-sized iron and steel enterprises was -23.172 billion yuan, a year-on-year decrease of 135.82%. This situation finally improved in the first quarter of this year, and the main iron and steel industry decreased significantly. According to the statistics of China Iron and Steel Association, in the first quarter, large and medium-sized iron and steel enterprises achieved a sales revenue of 875.85 billion yuan, an increase of 0.94% year-on-year; Profits and taxes reached 20.346 billion yuan, a year-on-year increase of 30.24%; The company achieved a profit of RMB 2.486 billion, turning losses into profits on a year-on-year basis, with a sales profit margin of 0.28% and a loss of 34.9%

high production capacity consumes profits

throughout the first quarter, profit, inventory and ore price are still the key words for the operation of the entire steel industry

although the main iron and steel industry decreased significantly in the first quarter, the profit decreased month by month, including 1.338 billion yuan in January, 998million yuan in February and 267million yuan in March. When the monthly loss reached 45.3%

different from the monthly decline in profits, the social inventory of steel has increased month by month since this year. By the end of March, the social inventory of major steel markets and major steel varieties in China had increased by more than 10 million tons over the end of the previous year, an increase of more than 80%. The continuous rise of steel inventory has brought great pressure to the steel market. The inventory of iron and steel enterprises also increased significantly. According to the statistics of China Iron and Steel Association on member enterprises, the inventory of iron and steel enterprises at the end of March was 14.83 million tons, an increase of 4.77 million tons or 47.4% over the 10.06 million tons at the beginning of the year

in 2013, the price of imported iron ore was still unsolved, and once returned to the high of $150. Compared with the beginning of the year, the price of imported iron ore has increased by more than 20-30 US dollars per ton, which is far higher than the amount of steel price increase. At the same time, the price of domestic iron ore has also risen, resulting in high steel production costs. On February 20 this year, the state raised railway freight prices by 1.5 points per ton kilometer, affecting the iron and steel industry by more than 20 billion yuan a year. In zhujimin's view, whether it is the decline of profits month by month, the overstock of steel inventory, or even the soaring price of iron ore, the main culprit is the rapid growth of production capacity in the capital. Under high production capacity, the contradiction between market supply and demand remains

in the case of limited market demand growth, the steel output has increased significantly, which further intensifies the contradiction between supply and demand in the steel market, and the competition among enterprises, especially the product homogenization competition, has become more intense. Zhujimin said

it is worth mentioning that with the increase of trade friction events, the export of China's steel products will become more difficult. Since 2013, due to the slow recovery of the international economy and the increasing international trade protection, the European Union, the United States, Australia, Canada, Malaysia, Thailand, India and other countries have successively initiated anti-dumping, countervailing investigations and trade protection on China's steel products exports. In the first quarter of this year, more than 10 cases were involved, especially in ASEAN countries, which have recently received strong reactions

The central economic work conference made it clear that this year China will continue to implement an active fiscal policy and a prudent monetary policy to maintain sustained and healthy economic development; The state will vigorously promote the construction of new urbanization and support the development of the real economy, which are good for the development of the iron and steel industry

zhujimin said that compared with last year, the overall market environment of the steel industry this year will be better than last year. With the arrival of the peak demand season in the second quarter and the beginning of the new government, the steel market demand will improve. However, due to the rapid release of production capacity and the great pressure of rising costs, the operation of steel enterprises is still difficult to fundamentally improve

in terms of demand, although it has improved, it is still difficult to increase significantly. The expected target for China's economic growth this year is set at (4) about 7.5% of the maximum load elongation and failure elongation. Although it is slightly lower than that of the previous year, it is still growing rapidly. Investment will play a key role in economic growth

promoting urbanization is the biggest highlight of the steel market this year. Under the influence of favorable factors such as the growth of the automobile industry, the acceleration of railway investment and the gradual recovery of the shipbuilding industry, the downstream demand will gradually improve. Zhujimin said that at the same time, it is difficult to see a large increase in steel consumption. Steel enterprises should not have too high expectations, let alone blindly expand production

driven by the rising cost, the price of steel will increase at the same time to improve the driving comfort. However, due to the oversupply of the market, the high steel inventory and the intensified international trade protection, the market competition will be more intense, and the steel price is difficult to increase significantly. If the production capacity is not controlled, it may continue to decline. Zhujimin said

the rising cost will also make the iron and steel enterprises in a low profit state for a long time. Although the world economic situation this year is better than that of last year, on the whole, the recovery is slow. Major developed countries have implemented loose monetary policies. The prices of international bulk primary products are steadily rising. China is facing imported inflation pressure. In terms of market conditions, in addition to the continuous rise in the prices of raw and fuel materials such as iron ore and scrap steel, the costs of land, labor and environmental protection will increase. In addition, China will intensify its efforts in energy conservation and emission reduction. The pace of reform in resources, energy prices, finance and taxation will be further accelerated, and the costs will be further increased. The situation of high cost and low profit of iron and steel enterprises is difficult to change in the short term

controlling production capacity is the primary task

controlling production capacity, promoting self-discipline and reducing costs have become a realistic choice for iron and steel enterprises to survive under the pattern of low profits. Zhujimin suggested that iron and steel enterprises should strive to improve the operation quality and economic benefits of enterprises through measures such as controlling the release of production capacity, optimizing product structure, in-depth benchmarking and tapping potential, and strengthening internal management

overcapacity in the steel industry and the market supply for COMAC, as the main R & D body of C919 large aircraft project, are the primary difficulties faced by the industry. Zhujimin said that the review of the standard conditions for the iron and steel industry should be taken as an important starting point for resolving overcapacity, and the development of iron and steel enterprises should be carefully understood, "said Qian, manager of Jinmin Research Institute, to strengthen the elimination of backward production capacity, strictly control the rapid growth of iron and steel production capacity, and promote the structural adjustment, transformation and upgrading of the iron and steel industry

at the same time, iron and steel enterprises should strengthen industry self-discipline to ensure market stability. First, organize relevant enterprises to discuss and negotiate, reasonably control the steel output, especially the output of key varieties, and strictly prevent the excessive growth of output; Second, strengthen the coordination between supply and demand in the domestic market, standardize the sales behavior of enterprises, straighten out the price formation mechanism of steel products, maintain market stability and the overall interests of the industry, promote win-win cooperation and avoid vicious competition; Third, promote steel export in a standardized and orderly manner, strengthen information exchange and self-discipline of export enterprises, and improve the grade of export products; Fourth, strengthen export early warning, strengthen coordination and communication with steel organizations in major exporting countries or regions, enhance understanding and reduce trade frictions

for high ore prices, in addition to strictly reducing costs and increasing efficiency, the role of China's iron ore spot trading platform should not be ignored

zhujimin once again stressed that expanding the trading volume is still the primary task of the iron ore spot trading platform in the future. We should not only call on member enterprises, especially large enterprises, to take the lead in increasing platform procurement, but also promote major foreign iron ore suppliers to increase resource investment

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