Recently, a number of iron and steel companies including Anyang Iron and Steel Co. and Baosteel have issued performance reports for 2018. The annual performance of 2018 continues to grow year-on-year, but the fourth quarter profit ring-on-ring decline has become a common phenomenon. Many industry experts believe that the downward trend of steel prices in 2019 will continue, which means that the industry's profit level this year is difficult to surpass last year.
Since the end of last year, most institutions have predicted that the economic growth rate in 2019 will be lower than that in 2018, and the demand for investment and consumption will also face certain downward pressure, which is undoubtedly a huge challenge for the steel industry. In November last year, steel prices fell considerably, which the industry considers to be largely a reflection of unoptimistic expectations for the future.
Although the steel industry as a whole believes that this year is not as good as last year, the pace of reform within the industry will not slow down. In 2019, the main points of structural reform of supply side in iron and steel industry should be shifted from resolving excess capacity to preventing the resurgence of resolved capacity, strictly preventing the resurgence of "floor steel" and strictly prohibiting new production capacity.
The key development tasks of the iron and steel industry have been transformed into deleveraging and merger and reorganization. Excellent enterprises in the iron and steel industry will further enhance their ability to integrate production capacity, accelerate mergers and reorganizations, and raise the high-quality development of the iron and steel industry to a new level.
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