In the past two years, due to the international economic downturn, China's economic growth rate has declined, some industries have experienced negative growth in steel consumption, market demand has shrunk, and steel prices have dropped significantly, resulting in serious difficulties for the steel industry. In the face of a severe situation, steel companies are following the principle of; Stabilize the market, control production, adjust structure, and ensure profitability; The policy has actively taken various measures to reduce adverse effects, making positive contributions to meeting the development needs of downstream industry users and supporting the stable, healthy, and sustainable development of the national economy.

one、 two0onetwoAnnual operation of the steel industry

oneThe national crude steel production is growing at a low rate, while the output of member enterprises is decreasing

In 2021, the national production of pig iron, crude steel, and steel was 6.79 million tons, 0.76 million tons, and 9.86 million tons respectively, an increase of 3.7% year-on-year three.one%、7.7%， Compared with the previous year, the growth rates have decreased by 4.7, 5.8, and 4.6 percentage points respectively. Among them, member steel companies of the Iron and Steel Association produced 8.9 million tons of crude steel, a year-on-year decrease of 0.6%; Other enterprises produced 90000 tons of crude steel, a year-on-year increase of 24.8%. Two years of membership enterprise“ Control production volume; The measures have achieved certain results.

twoSteel prices remain consistently low throughout the year

Both international and domestic steel prices have shown a downward trend in the past two years. At the end of the year, the International Steel Composite Price Index was one seven five points, a decrease of 6.3% from the end of the year and 8.9% from the end of the year; The comprehensive price index of domestic steel is one0five.threeone points, a decrease of onetwo.five 7% from the end of the year and oneone-62% from the end of the year. Among them, the price index of long steel is one06.7 points, a year-on-year decrease of onefive.6five%, and the price index of sheet steel is one0five.74 points, a year-on-year decrease of 9.07%. On September 7th, the domestic comprehensive steel price index fell below 100 points, reaching the lowest point of the year at 99.24 points. Although it slowly rebounded afterwards, it remained low by the end of the year.

threeThe profitability of member steel enterprises has significantly decreased, while the number of loss making enterprises has increased significantly

Over the course of two years, member steel companies have achieved a cumulative sales revenue of three hundred million yuan, a year-on-year decrease of four percent; Achieved a profit and tax of 740.89 million yuan, a decrease of fivefour.threethree%, and a profit of one five.81 billion yuan, a year-on-year decrease of 98.2%. Among them, the entire industry suffered losses in months one and two, with slight profits in months three, four, and five. There were losses again in months six, seven, eight, and nine. Starting from late September, due to the rebound in steel prices, the business improved in the fourth quarter, achieving a turnaround from losses to profits. For the whole year, there were two cumulative loss making enterprises, an increase of one five compared to the previous year, with a loss of 28.7 five%. The loss making enterprises incurred a total loss of 28.9 billion yuan, an increase of 7.9 times compared to the previous year.

fourModerate increase in steel exports, decrease in imports

In 2021, the export of steel products reached three million tons, an increase of 6.85 million tons year-on-year, a growth of four percent; Imported steel reached 660000 tons, a year-on-year decrease of 90000 tons, a decrease of 100000%. Imported steel billets reached 60000 tons, a year-on-year decrease of 80000 tons, a decrease of 40000%; The net export of crude steel offset by imports and exports was 80000 tons, an increase of 9.61 million tons year-on-year, a growth of 27.6%, accounting for approximately 6.2% of the country's crude steel production. Although steel exports have increased moderately, the structure of exported steel urgently needs to be optimized. In 2021, the average import price of steel in China was $0.4 per ton, while the average export price was $0.8 per ton. The average price difference between imports and exports was $79.6 per ton, an increase of $0.6 per ton compared to 2021.

fiveThe growth rate of fixed assets investment in the steel industry fell back

In the year of two0onetwo, the fixed assets investment in the national steel industry was RMB 6five8four billion, an increase of two.97% year on year, and the growth rate dropped by onetwo.fivefour percentage points compared with the year of two0oneone. The investment in the black metal mining and beneficiation industry was 1.9 billion yuan, a year-on-year increase of 2.7%, with a growth rate five percentage points higher than the previous year; The investment in black metal smelting and rolling processing industry was five billion yuan, a year-on-year decrease of 2.0%, and a year-on-year increase of 4.6%. Although the total investment in the smelting and rolling processing industry has slightly decreased compared to the previous year, the total investment of five hundred million yuan is still very large, and the newly generated production capacity will inevitably increase the pressure of current overcapacity.

2、 Two, one, twoProminent problems in the operation of the steel industry in the year

oneInsufficient market demand, excessive production capacity, and sharp drop in steel prices have plunged the steel industry into extreme difficulties

The national industrial added value increased by 0.1% compared to the previous year, but the growth rate decreased by 3.9 percentage points compared to the previous year; The delivery value of national industrial exports increased by 7.1%, a decrease of 9.9 percentage points from the 6.6% growth in 2021. The investment in the railway transportation industry only increased by two. f% year-on-year; The investment in the road transportation industry increased by 6.6%, a decrease of three to two percentage points; The growth rate of national real estate development investment has fallen by 1.7 percentage points, especially the newly started housing area has decreased by 7.3% year-on-year, compared to a growth of 6.2% in the same period last year; The three major indicators of the shipbuilding industry, shipbuilding completion volume, decreased by two% year-on-year, new orders volume decreased by four% year-on-year, and held orders volume decreased by two 8.66%.

Due to insufficient demand and excessive production capacity in downstream industries, the contradiction between supply and demand in the steel market is very prominent. Steel sales are extremely difficult, and prices have plummeted, leading to further intensified competition among enterprises, especially in terms of product homogenization competition. The steel industry has encountered difficulties that have not been seen since the new century.

twoThe high price of imported iron ore and the low price of steel have swallowed up the meager profits of steel enterprises

Last year, steel prices remained low for a long time, but as soon as there was a slight increase in steel prices, imported iron ore immediately followed suit, and the increase was much higher than that of steel prices. Taking January as an example, the Steel Association's steel price index only increased by 2.9% month on month, but during the same period, the lowest order price for imported iron ore (the third week of September) had already risen by 1.9%. The price of steel is not synchronized with the price of imported iron ore, and the price increase of imported iron ore is much higher than that of steel, which has swallowed up the meager profits of steel enterprises. Making the procurement of imported iron ore a high-risk game for steel companies is due to the lack of“ Step on the right spot; And fall into losses.

It is particularly important to draw the attention of media friends to the fact that in just 20 days from late February last year to mid January this year, the price of imported iron ore has risen from one-fifth US dollars per ton to one-fifth 9 US dollars per ton, an increase of four four US dollars per ton, a rise of up to 3.8%. Calculated based on the requirement of one-6 tons of iron ore per ton of steel production, it is equivalent to an increase of four two yuan per ton of steel cost, while the domestic market steel price has only increased by about one-06 yuan per ton. From the perspective of iron ore supply and demand, the domestic pig iron production in the first two months of last year and the first and middle months of this year were both lower than the production in the first one month of last year. Steel production did not increase, and imported iron ore did not increase either. It can be inferred that the surge in imported iron ore prices in this round is not due to significant changes in supply and demand, but entirely caused by artificially raising prices in the monopolistic market. Some ore suppliers are very blatant in raising ore prices, such as when ore prices began to decline on January 6th, and even a large miner purchased ore at a high price in reverse to increase prices.

threeThe current situation of tight funds, difficult and expensive financing for enterprises has not been changed

Last year, the financial situation of steel enterprises intensified, and the difficulty of financing increased. In 2021, the sales revenue of member companies decreased by four.threeone%, bank loans increased by 8.6% year-on-year, and financial expenses increased by four.two 9% year-on-year. The asset liability ratio of member companies continues to rise, reaching 68.3% by the end of 2021, an increase of 1.8 percentage points year-on-year.

fourThe high tax burden and unreasonable local charges have further increased the burden on enterprises

Due to the increase in taxes such as mineral resource tax, the tax burden on enterprises has increased, and some places have also imposed advanced taxes on steel companies to ensure that tax revenue does not decrease. At the same time, some unreasonable charging projects in certain places have imposed a heavy burden on enterprises, causing them unbearable suffering.

fiveIndustry self-discipline needs to be strengthened, and vicious competition is becoming increasingly prominent

One reason is that some enterprises lack self-discipline and compete to lower prices in steel sales; Secondly, some enterprises adopt tax evasion methods such as issuing fewer or no invoices, selling steel at low prices and disrupting the order of fair competition; Thirdly, due to ineffective crackdowns in some areas, counterfeit and inferior steel products flood the market.

3、 Two or threeKey tasks in the steel industry for the year

The Central Economic Work Conference pointed out that the international economic situation in the next two decades is still complex and full of variables, and the world economy has entered a period of deep transformation and adjustment from the rapid development period before the crisis. There are new opportunities for China's economic development to expand domestic demand, enhance innovation capabilities, and promote the transformation of development mode. Overall, the operating environment of the steel industry in 2021 is better than in 2021, and there will be a certain increase in steel demand. But the difficulties and challenges faced this year should not be underestimated: firstly, the demand growth in downstream industries is flat, making it difficult for steel consumption to increase significantly; Secondly, the expansion of steel production capacity has not been effectively curbed, and the situation of oversupply will not change; Thirdly, the high cost of raw materials and fuels is difficult to change, and it is challenging to establish a fair and transparent order for imported iron ore; The fourth issue is the fierce competition of product homogenization, and the vicious competition between enterprises has not yet been resolved. The establishment of a fair competition order in the industry still needs further deepening of reforms by the country.

In the next two decades, the market situation is unlikely to fundamentally improve, and the steel industry still faces severe challenges. The entire industry must take seriously studying and implementing the spirit of the 18th National Congress of the Communist Party of China as the central task, conscientiously implement the spirit of the Central Economic Work Conference, and; Transforming methods, optimizing structure, improving quality, and increasing efficiency; As a key focus of the year's work, we will accelerate technological innovation, strengthen product innovation, management innovation, and business model innovation, and strive to achieve innovation driven new development in China's steel industry. Specifically, the following aspects of work need to be done well:

oneSeriously implement the spirit of the 18th National Congress of the Communist Party of China, deeply summarize the experience and lessons of China's steel industry development, and explore new ideas and models for innovative development of the steel industry

One is to seriously consider the proposal put forward at the 18th National Congress of the Communist Party of China; Double the two; The strategic requirements include significantly improving the quality of urbanization and further enhancing the level of opening up to the outside world, exploring the opportunities and challenges faced by the development of the steel industry. Secondly, it is necessary to deeply summarize the experience and lessons learned from the development of China's steel industry since the new century, solve industry development problems, seriously consider the direction and focus of steel industry development in the next ten years, explore development laws, and innovate industry and enterprise development concepts; Thirdly, we should seriously consider the historical responsibility that the steel industry should shoulder in strengthening ecological civilization construction and building a beautiful China, as well as the opportunities, pressures, and challenges it faces; The fourth is to seriously consider further improving the level of openness of China's steel industry, and to study and implement; Go out; The problems and proposed measures to be addressed in the development strategy.

twoMaking the resolution of overcapacity an important task for the entire industry

Actively cooperate with relevant ministries and commissions such as the National Development and Reform Commission and the Ministry of Industry and Information Technology to study and implement the proposals put forward at the Central Economic Work Conference; We should make full use of the pressure mechanism formed by the international financial crisis and prioritize resolving the contradiction of overcapacity; Suggestions for industry countermeasures; We should take the cooperation in auditing steel enterprises that comply with the "Steel Industry Standard Conditions" as an important lever to resolve overcapacity, carefully understand the current development status of steel enterprises, and provide a basis for the formulation of policies and measures to standardize the production and development of steel enterprises and eliminate outdated production capacity; We should closely cooperate with the Ministry of Industry and Information Technology and other departments to carry out the relevant work of the "Guiding Opinions on Accelerating the Merger and Restructuring of Key Industry Enterprises", strengthen the research on the merger and restructuring of steel enterprises, and timely reflect the demands of enterprises. In short, it is hoped that government regulatory departments and the entire industry will fully follow market mechanisms and strive to expand consumption, strictly control new construction, orderly transfer, promote integration, and steadily exit, gradually resolving overcapacity in the steel industry.

threeStrengthen industry operation monitoring and industry self-discipline, and strive to promote market stability

One is to strengthen the monitoring and analysis of industry economic operations, closely monitor market trends and economic conditions, strengthen research on trending and directional issues, timely release relevant analysis reports, and guide enterprises to make correct business decisions; The second is to regularly organize enterprise discussions and consultations, reasonably control production capacity, standardize sales behavior, study and rationalize the mechanism of steel product price formation, safeguard the overall interests of the industry, and avoid vicious competition; The third is to strengthen the coordination of supply and demand in the domestic market, maintain market stability, and focus on strengthening the coordination of supply and demand in the sheet metal market; The fourth is to promote steel exports in a standardized and orderly manner, strengthen export warning work, enhance information exchange among export production enterprises, strengthen communication with major exporting countries or regions' steel organizations, enhance understanding, and reduce friction.

fourContinue to promote the work of iron ore spot trading platform

The focus of this year's iron ore spot trading platform is to take measures to further expand the platform's trading volume. Firstly, member companies, especially large enterprises, should take the lead in increasing their procurement volume on the platform, setting a ratio, and implementing it seriously; Secondly, promote and encourage major foreign iron ore suppliers to increase their resource allocation on the platform; Thirdly, we need to change our service concept, strive to provide high-quality services for both supply and demand sides, and continuously expand the platform's spot trading functions. In short, the spot trading platform for iron ore plays an important role in discovering prices and promoting fair trade, and member companies should strongly support it.

fiveIn depth development; Benchmarking and tapping potential; Activity, increase efforts to reduce costs and increase efficiency

In the face of a severe market environment, further development is needed; Benchmarking and tapping potential; Activity. The association should promote the industry through typical experiences, refine enterprise benchmarking content, organize special seminars, and other methods; Benchmarking and tapping potential; Continuously deepening work, vigorously reducing costs and expenses, and striving to improve industry profitability.

6. Vigorously strengthen technological innovation and accelerate the transformation and upgrading of the steel industry

One is to accelerate the improvement of a technology innovation system that is centered on enterprises, market-oriented, and combines industry, academia, research, and application, fully leveraging the leading role of enterprises in scientific and technological innovation, and promoting the construction of innovative enterprises; The second is to strengthen; Twelfth Five Year Plan; Organize and implement national science and technology support plan projects, increase the evaluation (appraisal) of major common scientific and technological achievements in the industry, carry out industry scientific research and technology exchange activities, and accelerate the promotion and application of scientific and technological achievements; Thirdly, we will improve the efficiency of energy conservation, emission reduction, and comprehensive resource utilization, and continue to organize large-scale energy consuming steel equipment energy conservation and consumption reduction benchmarking competitions; The fourth is to implement the innovation driven development strategy, promote technological progress and management innovation in the industry, and further strengthen the cultivation and training of urgently needed and scarce talents and innovative high-end talents in the industry through national talent engineering projects.