The operation of the iron and steel industry and the main characteristics of the development of the private iron and steel economy

Since the beginning of the year, in the face of the huge impact of the sudden new crown pneumonia epidemic and the complicated and severe domestic and foreign environment, the steel industry has conscientiously implemented the “six stability” and “six guarantees” decisions and deployments of the Party Central Committee and the State Council, adhered to the prevention and control of the epidemic and stable production and operation Grasping with both hands has achieved good results.

Main features of the operation of the steel industry

First, the overall operation of the steel industry remained stable. Since the beginning of this year, the iron and steel industry has shown a steady growth in production, a slight rebound in prices, and a gradual improvement in economic performance. According to data from the National Bureau of Statistics, the output of crude steel, pig iron, and steel products nationwide was 781.59 million tons, 665.48 million tons, and 964.24 million tons, respectively, up 4.5%, 3.8%, and 5.6% year-on-year.

According to statistics from the Metallurgical Chamber of Commerce, the output of crude steel, pig iron, and steel produced by private steel companies from January to September was 498 million tons, 407 million tons, and 690 million tons, respectively, representing a year-on-year increase of 5.8%, 4.9%, and 6.6%, respectively. National average; crude steel output accounts for 62.8% of the national output.

Second, the economic benefits continued to improve. According to the National Bureau of Statistics, the national steel industry realized a total profit of 157.7 billion yuan from January to September, a year-on-year decrease of 18.7%.

Statistics of key private steel companies from January to September by the Metallurgical Chamber of Commerce: Sales revenue reached 2060.5 billion yuan, a year-on-year increase of 6.8%; realized profits and taxes of 147 billion yuan, down 5.6% year-on-year, of which realized profits of 92.2 billion yuan and paid taxes of 54.8 billion yuan. Key private steel companies pay more than 200 yuan per ton of steel; the main reason for the decline in profits and taxes is the large increase in the price of raw materials such as iron ore; the debt ratio of enterprises has dropped from 61.8% last year to 58.2% this year, a decrease of 3.6 percentage points; In general, the operation of private steel has improved, and the main indicators are better than the national average.

However, in the economic operation of the steel industry, it is also facing difficulties such as maintaining high raw and fuel prices, rising costs, and falling exports.

Third, the steel industry is showing new changes. There are three outstanding changes: 1) The share of crude steel production in the world is increasing, and it was 53% in 2019. This year, under the two-way influence of domestic production increase and foreign production reduction, there will be a greater increase, which is expected to reach about 60%. 2) The full release of steel production capacity driven by strong domestic demand has also strongly supported the rapid recovery of the national economy. It is expected that the annual steel consumption and output will exceed 1 billion tons. 3) The overall image of the steel industry is undergoing positive changes. Over the years, the steel industry has been overwhelmed by the "two highs and one capital" hat, but the steel industry insists on keeping its eyes inward and resolutely implementing the Party Central Committee and the State Council’s recommendations on the supply of steel. The principles and policies of structural reforms and the firm green development concept have achieved remarkable results after long-term efforts, and have been affirmed by relevant national departments. On September 26, the director of the Department of Atmospheric Environment of the Ministry of Ecology and Environment, Liu Bingjiang, in 2020 China Steel The Energy Conservation and Emission Reduction Forum said: During the "13th Five-Year Plan" period, the steel industry has made outstanding contributions to improving the national air quality, and air pollution control has achieved positive results. Although steel production exceeds the planned target, crude steel production has increased year by year, and air pollutants Emissions have increased, but the effect of emission reduction measures has exceeded expectations, offsetting the impact of the increase in steel, and achieving "increased production without increasing pollution"; the iron and steel industry resolves the three major reductions of excess capacity, process emission reduction, and ultra-low emission transformation The effectiveness of emission control measures exceeded expectations.