In the future, China's steel demand will be in the stage of reduction adjustment. During the "Fourteenth Five-Year Plan" period, the total demand for steel products will show a downward trend in fluctuations, but the overall demand will remain at a high level.
Li Xinchuang, president of the Institute of Metallurgical Planning and Research revealed at the 8th China Iron and Steel Technology and Economy High-end Forum on November 23 that according to China's steel consumption in the first three quarters and the trend of economic operation in the fourth quarter, the Chinese steel consumption in 2019 will be judged About 870 million tons, an increase of 5.3%.
Li Xinchuang predicts that in the future, China's steel demand will be in the stage of reduction adjustment. During the "Fourteenth Five-Year Plan" period, the total demand for steel products will show a downward trend in fluctuations, but the overall demand will remain at a high level.
This forum is sponsored by the Metallurgical Industry Planning Research Institute and the Chinese Metal Society, and its theme is "Technology to improve efficiency and reduce costs-the new economy promotes high-quality development."
Since this year, the state has implemented large-scale tax and fee reductions and targeted reductions in measures, which have created good external conditions for the survival and development of enterprises. At the same time, the steel industry itself has strengthened its internal capabilities and comprehensively promoted quality improvement and efficiency, laying the foundation for the steel industry to move towards high-quality development.
According to Li Xinchuang's analysis, the domestic economic operation in the first three quarters was better than expected, especially driven by the infrastructure construction closely related to steel, the industry has grown steadily, and major projects in various places have started, creating a better market environment for the steel industry , China's steel production and consumption have achieved large increases.
Data show that from January to October, the country ’s crude steel output was 829 million tons, a year-on-year increase of 7.4%. Steel production was 1.01 billion tons, a year-on-year increase of 9.8%. Imported iron ore was 877 million tons, a year-on-year decrease of 1.6%, and export steel was 55.087 million tons. , A year-on-year decrease of 5.8%. According to estimates, China ’s steel consumption in the first 10 months reached 742 million tons, a year-on-year increase of 6.68%.
"Overall, in the face of complex domestic and foreign environments, steel companies are seizing market opportunities, continuously meeting market demand, and actively promoting ultra-low-emissions reforms while achieving stable production increases, exploring new paths for mergers and reorganizations, and achieving phased Results. "Li Xinchuang said.
At the same time, the entire steel industry is facing many difficulties and challenges such as the rapid release of production capacity, protection from international trade doctrine, rising corporate costs, and increasing downward pressure on the economy.
Iron and steel enterprises have higher pressure to increase costs. Since the beginning of this year, the price of imported iron ore has risen sharply due to the dam collapse in the Vale of Brazil and the hurricane in Australia. From July this year, the price of imported iron ore rose to USD 119.51 / ton; Rising prices of scrap steel and coking coal, as well as rising environmental protection costs and logistics costs, the cost of iron and steel companies has risen sharply, and manufacturing costs have risen by 8-10%, which has led to a decrease in the benefits of most enterprises year-on-year.
Data show that from January to September, the sales revenue of members of the China Steel Association was 3.18 trillion yuan, a year-on-year increase of 11.6%; the total profit realized was 146.6 billion yuan, a year-on-year decrease of 32.0%; the sales profit margin was 4.6%, a decrease of 3 compared with the same period last year percentage point.
At the forum, Miao Changxing, the first-level inspector of the Industrial Policy Department of the Ministry of Industry and Information Technology, said that it is necessary to promote the high-quality development of steel around five aspects: innovative development, integrated development, green development, coordinated development and key technological innovation.
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