Recently, China Iron and Steel Industry Association held a video conference on the economic operation of some iron and steel enterprises in the first quarter to analyze the operation of the industry, understand the main problems and prominent difficulties encountered in the production and operation of iron and steel enterprises, grasp the operation trend of the industry in the later stage, and put forward countermeasures and suggestions.
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. The stricter environmental protection control and arduous task of carbon reduction 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 increase 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 conflict between Russia and Ukraine and the covid-19 pneumonia 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 stable growth of the country, 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.
When talking about the operation of the steel industry, he Wenbo, Secretary of the Party committee and executive president of the Steel Association, said that in the first quarter, under the circumstances of China’s complex shape and facing various difficulties and shocks in economic operation, the steel industry conscientiously implemented various strategic departments and programs 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, and the situation was better than expected, And showing a positive trend month on month. Major enterprises have overcome many difficulties and achieved 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 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 of markets outside China, take the balance of supply and demand as the goal, advocate industry self-discipline, maintain the elasticity of supply, maintain the stable operation of the steel market, and achieve better economic benefits on the basis of maintaining supply and price. Second, the key is to ensure the supply of raw materials. 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 the world’s cutting-edge low-carbon technology 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 in strengthening data governance, improving data quality, improving data services and building data confidence with member enterprises.
“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.
