China Steel Association held a video conference on the economic operation of some iron and steel enterprises in the first quarter of 2022

According to the WeChat public number “China Iron and Steel Association” news, in April 15th, the China Iron and Steel Industry Association held a quarterly official account of the iron and steel enterprises economic operation video conference, analyzed the operation of the industry, understood the main problems and difficulties in the production and operation of the steel enterprises, grasped the operation situation of the latter industry and put forward countermeasures and suggestions. He Wenbo, Secretary of the Party committee and executive president of the Steel Association, attended the meeting and made a concluding speech; Qu Xiuli, vice president and secretary general, presided over the meeting; Chief economist Wang Yingsheng, deputy secretaries Shi Hongwei and Huang Dao, heads of relevant business departments and principals in charge of operation of 17 iron and steel enterprises attended the meeting.

He Wenbo first expressed condolences to all cadres and workers of Baowu located in Shanghai and learned more about the epidemic prevention and control, production and operation of Baowu. After that, the Steel Association reported the operation of the steel industry in the first quarter and the main problems that should be paid attention to. The production and operation of Angang, Sichuan iron and Steel Group Co., Ltd., Hunan Shougang Group Co., Ltd., Liuzhou Iron and Steel Group Co., Ltd., Liuzhou Iron and Steel Group Co., Ltd., China Baotou Iron and Steel Group Co., Ltd., Liuzhou Iron and Steel Group Co., Ltd., Liuzhou Iron and steel Group Co., Ltd., China Baotou Iron and Steel Group Co., Ltd., Hunan Baotou Iron and Steel Group Co., Ltd., Liuzhou Iron and Steel Group Co., Ltd., Liuzhou Iron and Steel Group Co., Ltd., Liuzhou Iron and Steel Group Co. On the whole, in the first quarter, iron and steel enterprises paid close attention to three major events: economic work, epidemic prevention and control and safe production. The production and operation situation was better month on month. Most enterprises achieved a good start in the first quarter, but at the same time, they were faced with difficulties such as blocked logistics and transportation and sharp rise in costs. Stricter environmental storage control and arduous carbon reduction tasks also brought new challenges to enterprise operation. From the reflected situation, the current difficulties encountered by iron and steel enterprises in production and operation are relatively concentrated, mainly due to the impact of stricter epidemic prevention and control on personnel flow and logistics transportation, and the continuous rise in the prices of raw fuels such as iron ore, coking coal, coke and scrap steel, resulting in the rise of procurement costs and manufacturing costs, the profit space is further reduced, and the smooth operation of stable production faces great challenges.

As for the operation situation of the industry, the participants believed that the current international situation is complex and changeable, the impact of the Russian Ukrainian conflict and covid-19 epidemic on the global industrial chain supply chain is obvious, and the international bulk commodity market fluctuates greatly. The epidemic situation in China also shows a trend of local aggregation and multi-point distribution, and the demand for steel is relatively weak. In the later stage, under the goal of national steady growth, with the mitigation of the epidemic situation and the force of multiple policies, the demand for steel will be accelerated, the steel production will gradually return to normal, the demand growth is expected to be greater than the output growth, the market supply and demand pattern will be improved, and the overall iron and steel industry will maintain a stable operation.

In his concluding speech, he Wenbo congratulated Shougang on its excellent performance and achievements in the Beijing Winter Olympics. Turning to the operation of the iron and steel industry, he said that in the first quarter, the iron and steel industry conscientiously implemented the strategic arrangements of the CPC Central Committee and the State Council, actively took measures to deal with the epidemic and market changes, basically realized the safe and stable operation of the whole industry, the situation was better than expected, and showed a better trend month on month. It is not easy for major enterprises to overcome many difficulties and achieve a “good start” in benefit indicators, but some enterprises have encountered great difficulties in production and operation. On the whole, in the first quarter, the steel consumption has not been substantially started, and the steel production is still running at a low level. Due to the dynamic matching between supply and demand on the whole, the relatively stable steel market price has been maintained. At the same time, the industry also faces many problems, especially the sharp rise in the cost of raw materials, which has compressed the profit space. It is expected that the economic benefits in the first quarter will decline year-on-year, and the business situation is still severe.

He Wenbo said that the key issue at present is to ensure logistics, smooth flow, supply and balance between supply and demand. In the next step, we will mainly carry out the following work: first, carefully monitor the economic operation of the industry , closely track the changes in markets outside China, advocate industry self-discipline with the goal of balancing supply and demand, maintain the elasticity of supply, maintain the smooth operation of the steel market, and achieve better economic benefits on the basis of ensuring supply and stable price . First of all, we should try our best to coordinate all forces to promote the smooth flow of logistics. At the same time, we should base ourselves on the current situation and plan for the long term, actively implement the “cornerstone plan”, lock in goals and promote the orderly development of all work third, solidly promote the “double carbon” work, and focus on the key points of scientific and technological work in terms of supporting the development of cutting-edge low-carbon technologies in the world and encouraging the expansion of production and market of high-end products dominated by key materials of special steel, we should eliminate unreasonable policy obstacles and study and launch specific and effective support policies fourth, we should further strengthen industry data management and services all professional working committees should play a role and work with member enterprises to strengthen data governance, improve data quality, improve data services and build data confidence.

“Facing the future, we should also strengthen our confidence and take the initiative. The iron and Steel Association will sort out and summarize the problems and demands reflected by enterprises, pay close attention to research, actively coordinate and give timely feedback. We should adhere to the goal orientation, problem orientation and result orientation, and continue to do a good job in all work.” He Wenbo said.

At the meeting, Wang Yingsheng and Huang Dao responded and exchanged views on the problems raised by enterprises, such as poor logistics, steel export, raw fuel import, stricter environmental protection control, energy consumption “double carbon” work, combined with the ongoing work of the steel association to strengthen industry self-discipline and publicity of ultra-low emission transformation.

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