He Wenbo, Secretary of the Party committee and executive president of China Iron and Steel Industry Association, said at the recent video conference on the economic operation of some iron and steel enterprises held by China Iron and Steel Industry Association in the first quarter, in the first quarter of this year, the iron and steel industry basically realized the safe and stable operation of the whole industry, the situation was better than expected, and showed a positive trend month on month. 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 benefit in the first quarter will decline year-on-year, and the business situation is still grim
The participants believed that in the later stage, under the goal of stable national 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 improve, and the steel industry will maintain a stable operation on the whole.
estimated economic benefits in the first quarter
year on year decrease
China Baowu, Angang, Shougang and other iron and steel enterprises respectively introduced the production and operation in the first quarter.
from the situation reflected, at present, the 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 increase of procurement costs and manufacturing costs, the further reduction of profit space, and the smooth operation of stable production is facing great challenges
He Wenbo said that in the first quarter, the steel industry basically realized the safe and stable operation of the whole industry, the situation was better than expected, and showed a positive 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.
He further said that on the whole, in the first quarter, steel consumption has not been substantially started, and steel production is still running at a low level. Due to the dynamic matching between supply and demand on the whole, relatively stable steel market prices have 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.
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.
industry demand may be released in the second half
“Gold, silver and four” is the traditional consumption peak season of the iron and steel industry every year. Under the influence of multiple factors, the “golden third” market in China’s steel market failed to arrive as scheduled. At the beginning of April, the steel market performed strongly. At present, the main contract price of rebar futures has exceeded 5000 yuan / ton, breaking the high point of the year.
can steel city usher in “Silver Four”? In this regard, my steel network experts said that the demand in April may be lower than expected, restraining the rise of steel prices. At the same time, the high cost and the expectation of the central bank’s RRR reduction support the steel price. There are still many uncertain factors in the short-term market, and the steel price may continue to fluctuate in the range
“At present, all the company’s projects have been started, but affected by the epidemic, the materials are not in place and the rush progress is average. Therefore, the demand for steel in April is not large.” Some business people also disclosed.
According to he Wenbo, the key issue at present is to ensure logistics, smooth flow, supply and balance between supply and demand. “Ensuring the supply of raw materials is the key. We should try our best to coordinate all forces to promote the smooth flow of logistics.”
Qu Xiuli, vice president and Secretary General of China Iron and Steel Industry Association, believes that the demand in the second quarter should be the peak season. With the epidemic under control, the demand may gradually pick up.
The steel demand forecast for 20222023 released by the world iron and Steel Association shows that the steel demand will remain stable in 2022 due to the efforts of the Chinese government to promote infrastructure investment and stabilize the real estate market. The stimulus measures introduced in 2022 are likely to support a small increase in steel demand in 2023.
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