On the 31st, the China Iron and Steel Industry Association released the operation situation of the steel industry in the first half of the year. The reporter learned from the press conference that steel enterprises faced difficulties in operation in the first half of the year, and the industry was on the brink of losses. At the same time, the reporter gained a deep understanding of the three major industries in the steel industry; Strange Appearance ";, And feel that the industry urgently needs to accelerate structural adjustment

Price operation; High” With“ Low”

On the one hand, steel prices are running at a low level, and on the other hand, raw material prices such as iron ore are running at a high level, making it extremely difficult for steel companies to reduce costs

It is reported that since the sharp decline in steel prices in the fourth quarter of last year, steel prices have been fluctuating at a low level. After the Spring Festival this year, with the warming weather, steel prices have rebounded, but due to factors such as rapid growth in steel production and high inventory levels, they have continued to decline since late April

In sharp contrast, according to statistics, the price of imported iron ore increased from $136.3 per ton at the end of last year to $152.9 per ton in mid May, and the average landed price of imported iron ore still reached $138.15 per ton in July

“ In the context of the continuous decline in steel prices, the prices of imported raw materials such as iron ore remain high, which is abnormal. Further measures should be taken to promote a further decline in imported mineral prices; Zhang Changfu, Vice President and Secretary General of the China Iron and Steel Association, stated

Given the current highly monopolized situation of imported iron ore, the China Iron and Steel Association pointed out that Chinese steel enterprises are accelerating the implementation of diversified import strategies for iron ore on the one hand, and accelerating the development of domestic iron ore resources on the other hand. It is hoped that China will support steel enterprises in developing domestic iron ore from a policy perspective, while reducing the tax burden on mining enterprises

Zhang Changfu also stated that it is necessary to further strengthen industry self-discipline, conscientiously implement the requirements of the import iron ore trade agency system, fully leverage the information leading role of China's iron ore price index, and enable the just started Beijing iron ore spot trading platform to truly play the role of discovering prices and conducting open and transparent transactions. This will further curb speculation and regulate the order of imported iron ore trade

Overcapacity and New Production

On the one hand, overcapacity has been criticized, while on the other hand, steel production is still increasing

Zhang Changfu told reporters that overcapacity in steel production is a global problem. The International Steel Association announced that the 62 major steel producing countries and regions in the world produced 131 million tons of steel in May 2012, a year-on-year increase of 0.7%, with a capacity utilization rate of 79.6%. If calculated based on a production capacity of over 900 million tons, the capacity utilization rate in China is also less than 80% according to the daily crude steel production level in May

Faced with overcapacity, the Chinese steel industry has accelerated the pace of adjusting production capacity. It is reported that in the first half of the year, a total of 357 million tons of crude steel were produced nationwide, a year-on-year increase of 1.8%, which can be described as; Slightly increased During the same period, the crude steel production of member enterprises of the China Iron and Steel Association decreased by 0.1% year-on-year, with a reduction of 310000 tons. Among the 74 member enterprises, 33 enterprises had a year-on-year decrease in production; However, the production of non member enterprises has increased significantly by 12.9%, which means that all the new crude steel production since the beginning of this year has come from non member local small and medium-sized enterprises; Introduction by Zhang Changfu

The China Iron and Steel Association pointed out that the Chinese steel industry must vigorously reduce steel inventory in the second half of the year; Controlling production is a key factor in stabilizing the steel market and reducing raw material prices. We must adhere to the industry's self-discipline requirements of not organizing production without contracts and not producing below manufacturing costs; Zhang Changfu said

Price difference between exports and imports

On the one hand, China exports steel at $960 per ton, while on the other hand, China imports steel at $1326 per ton. The average unit price of exported steel is $366 lower than the average unit price of imported steel, which is 27.6% lower

“ It should be clarified that the large-scale use of high priced imported iron ore while exporting low value-added steel is not the development direction of China's steel enterprises; Zhang Changfu told reporters

It is reported that in the first half of the year, the export of steel was equivalent to 28.99 million tons of crude steel, and the import of steel and steel billets was equivalent to 7.59 million tons of crude steel. The net export of crude steel in the first half of the year was equivalent to 21.4 million tons, an increase of 4.36 million tons or 25.6% year-on-year; This has played a certain role in easing the pressure on the domestic market, but the structure of China's exported steel needs to be optimized; Zhang Changfu pointed out

Li Xinchuang, Deputy Secretary General of the China Iron and Steel Association and President of the Metallurgical Industry Planning Institute, also pointed out that 95% of China's steel industry meets domestic demand. To export, it is necessary to export competitive, high-tech, and high value-added products from export enterprises, gradually reducing the export of low value-added steel

Zhang Changfu also pointed out that in difficult times, enterprises should seize favorable opportunities, actively adjust their product structure, vigorously promote energy conservation and emission reduction work, and promote the optimization, transformation and upgrading of the steel industry structure.