CISA: the prices of raw and fuel materials such as iron ore and coking coal have risen rapidly and are at a high level

"In the first quarter, the operation of the steel industry was generally stable and achieved a good start in the first quarter."

On April 25, China Iron and Steel Industry Association (hereinafter referred to as CISA) held an information conference for the first quarter of 2022. Qu Xiuli, vice president and Secretary General of CISA, said at the meeting.

Qu Xiuli said that in the first quarter, the overall supply and demand of the steel market was balanced, and the steel price rebounded slightly. According to the monitoring of China Steel Association, the average value of China steel price index (CSPI) in the quarter was 135.92 points, up 4.38% year-on-year.

At the same time, affected by the tightening situation of epidemic prevention and control in some regions and the rapid rise of commodity prices, iron and steel enterprises are facing difficulties such as blocked logistics and transportation and sharp rise in costs. The task of tightening environmental control and reducing carbon is arduous, which also brings new challenges to the production and operation of enterprises.

At present, the international bulk commodity market fluctuates greatly, and the prices of raw and fuel materials such as iron ore, coking coal, coke and scrap steel for iron and steel production rise rapidly and remain at a high level.

According to the monitoring of China Iron and Steel Association, at the end of March, the price of ciopi imported ore was 158.39 US dollars / ton, up 33.2% from the beginning of the year. In the first quarter, the average market prices of coking coal, metallurgical coke and scrap steel were 2813 yuan / ton, 3167 yuan / ton and 3665 yuan / ton respectively, with a year-on-year increase of 75.1%, 27.0% and 13.5% respectively.

In the first quarter of this year, the economic benefits of the iron and steel industry decreased year-on-year and rebounded month by month.

According to the statistics of China Iron and Steel Association, the operating revenue of member iron and steel enterprises in the quarter was 1499.3 billion yuan, a year-on-year decrease of 3.26%; The total profit was 55.3 billion yuan, a year-on-year decrease of 25.8%, with a month-on-month recovery trend; The average sales profit margin was 3.69%, a year-on-year decrease of 1.12%. At the end of March, the asset liability ratio of member steel enterprises was 61.08%, a year-on-year decrease of 1.73%.

Qu Xiuli predicts that the overall benefit of the steel industry this year will be lower than that of last year, but the decline will be narrowed in the second half of the year.

Shi Hongwei, deputy secretary of China Iron and Steel Association, said that with the gradual control of the epidemic, the supply chain and industrial chain of the iron and steel industry will be improved, and the bulk logistics will be gradually smooth. In the second half of this year, the steel demand restrained in the early stage will be released.

The growth rate of steel industry is basically the same as that of the national economy last year.

When talking about the key work in the next stage, Qu Xiuli suggested that the iron and steel industry should strive to do a good job in the stable operation of the industry. Under the guidance of national ministries and commissions, we will conscientiously implement the series of decisions and arrangements of "double control" of production capacity and output, and actively take effective measures to ensure the realization of the goal of "year-on-year decline in crude steel output in the whole year".

In addition, we should promote the stable and sustainable development of the industrial chain. From the strategic perspective of stable and sustainable development of the industrial chain, we will promote the implementation of the "cornerstone plan" for resource guarantee, promote the orderly development of China's new iron ore resources, overseas new equity iron ore, scrap resource recycling and other work, and improve the resource guarantee capacity of the iron and steel industry.

Qu Xiuli also mentioned that we should promote green and low-carbon development, focus on promoting scientific and technological innovation, and deeply carry out benchmarking and tapping potential activities.

According to the statistics of China Iron and Steel Association, in the first quarter, the total energy consumption of member iron and steel enterprises decreased by 9.01%, the total amount of discharged wastewater decreased by 17.38%, the chemical oxygen demand decreased by 18.07% and the sulfur dioxide emission decreased by 24.03% year-on-year.

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