“In 2021, the national economy will continue to recover, providing a good environment for the development of the iron and steel industry.” On January 10, at the third meeting of the Sixth General Meeting of China Iron and Steel Industry Association, Gao Xiangming, vice president of China Iron and Steel Association, Secretary of the Party committee and chairman of China Baowu TISCO group, was entrusted by Chen Derong, President of China Iron and Steel Association, Secretary of the party Committee and chairman of China Baowu TISCO group to make a work report in the form of video connection. The iron and steel industry has actively responded to the changes in demand situation outside China, worked hard to overcome the impact of high raw fuel prices and digested factors such as the sharp rise in environmental protection costs. The overall operation situation of the industry is good, in line with policy guidance and market expectations, and has made outstanding contributions to meeting the steel demand of downstream industries and ensuring the sustainable recovery of the national economy.
From both ends of steel supply and demand, the dynamic balance between supply and demand has been realized. The report shows that at the beginning of 2021, the steel industry made efforts to meet the strong demand of the steel market brought by the rapid growth of downstream industries and fully release production capacity. The daily steel production level increased month by month from January to April, forming a situation of prosperous production and marketing. After entering may, with the implementation of production restriction measures and the slowdown of demand growth in downstream industries, the steel industry timely controlled production capacity, and the monthly steel output decreased month on month for six consecutive months. In the first 11 months, the steel output was 946 million tons, a year-on-year decrease of 2.60%, equivalent to 908 million tons of apparent steel consumption, a year-on-year decrease of 5.2%; The output of pig iron was 796 million tons, a year-on-year decrease of 4.20%; The steel output was 1.223 billion tons, a year-on-year increase of 1.0%. The annual steel output is expected to be 1.03 billion tons, about 35 million tons less than that in 2020. The steel inventory has gradually decreased since reaching the high point in early March, and the level at the end of 2021 is basically the same as that in the same period in 2020. Overall, the supply and demand of steel will be basically balanced in 2021, creating good conditions for the development of downstream industries. During this period, with the overall situation in mind, the majority of enterprises actively took effective measures, resolutely implemented the decision-making and deployment of reducing steel output, and made positive efforts to realize the year-on-year decline of steel output.
From the perspective of business performance, the iron and steel industry has made efforts to overcome the difficulties of high raw fuel prices through tapping potential and increasing efficiency, and the industrial efficiency has reached the best level in history. In 2021, the price of imported iron ore fluctuated sharply, up to US $233.1/t. The average import price of Customs in the first 11 months was US $169.9/t, up 64.5% year-on-year; The prices of coking coal, metallurgical coke, scrap steel and other raw fuels also increased by a large margin. Affected by cost and demand, steel prices rose first and then declined. The average value of China’s steel price index in the first 11 months was 142.96 points, a year-on-year increase of 37.67%. Member iron and steel enterprises actively tap potential, reduce cost, improve quality and efficiency, and achieved an operating revenue of 6336.2 billion yuan in the first 11 months, a year-on-year increase of 36.25%; The total profit was 351.7 billion yuan, a year-on-year increase of 86.46%, the best level in history; The sales profit margin was 5.54%, a year-on-year increase of 1.48 percentage points. In November, the total profit was 9.2 billion yuan, down 64.03% month on month.
From the perspective of green development, the “double carbon” goal leads the green and low-carbon transformation and development of the iron and steel industry. After China determined the strategic objectives of carbon peaking and carbon neutralization, the low-carbon work Promotion Committee of the iron and steel industry came into being. The industry leading enterprises took the lead in putting forward the timetable and roadmap of carbon peaking and carbon neutralization. A number of iron and steel enterprises made breakthroughs in exploring new low-carbon metallurgical processes. Iron and steel enterprises have accelerated the transformation of ultra-low emission. By the end of 2021, 34 enterprises have completed the publicity of ultra-low emission transformation, of which 23 have completed the whole process transformation and publicity, with a steel production capacity of about 141 million tons; 11 enterprises have completed some ultra-low emission transformation, evaluation and monitoring progress publicity, and the steel production capacity is about 84 million tons. In addition, 61 enterprises are undergoing expert review and enterprise rectification before publicity, and 94 steel mills are listed on the list of green factories of the Ministry of industry and information technology. In the first 11 months, the comprehensive energy consumption per ton of steel, new water consumption per ton of steel, chemical oxygen demand and sulfur dioxide emissions decreased by 0.20%, 0.43%, 7.22% and 21.05% respectively year-on-year.
(source: International Business Daily)
