"Strictly speaking, the overall situation of my country's steel industry in 2020 is better than in 2019, and the impact of the epidemic on my country's steel industry is limited." Shen Wenrong summarized the operation of the industry in 2020.

He said that the impact of the epidemic in the first quarter of 2020 will be more serious, and inventories will increase; the second quarter has improved; the third and fourth quarters have improved further. In 2020, the output will increase, the benefits will be reasonable, the production and sales will be balanced, and the overall operation will be relatively good.

"The steel industry can achieve such results under the epidemic, not only to ensure the quality of the overall operation of the industry, stabilize the production of the steel industry, achieve a balance of production and sales, and promote the healthy development of China's economy." Shen Wenrong believes.

From the situation in November 2020, the demand for steel is not weak in the off-season, the inventory reduction is smooth, and the price of steel is showing an upward trend.

"The net imports in the last few months of 2020 are due to the rapid growth of billet imports and also because of higher domestic market prices." Shen Wenrong said.

In the overall good situation, the shortcomings of the industry have become more obvious.

"The 2020 epidemic also reflects that the operation of China's steel industry is constrained by others, mainly due to the fact that the situation is more severely constrained by raw materials. If there are no major fluctuations in raw material prices, there will be better benefits throughout the year." Shen Wenrong pointed out.

In 2020, iron ore prices will generally perform strongly, basically a unilateral increase. From mid-to-late January to mid-February 2020, the epidemic affected domestic steel mills' production expectations. Iron ore prices fell to US$80/ton under emotional pressure; from May to June, overseas epidemics and iron ore caused by rain in Brazil The decline in shipments is reflected in the number of arrivals. At the same time, domestic blast furnace operating rates have repeatedly hit new highs, ports have been substantially destocked, and iron ore prices have further strengthened. By December 2020, the arrival price of 62% grade iron ore will exceed US$170/ton.

"The crux of the problem is that this situation will not only happen in 2020, but also in 2021 and beyond, with far-reaching impact. For the coastal steel mills that rely on imports, the impact is more serious, and no solution has been found yet. "Shen Wenrong thinks.

"In 2020, Shagang has performed well as a whole, and achieved good benefits under the premise of doing a good job in epidemic prevention and control." Shen Wenrong said when introducing Shagang's business situation, in the first 11 months of 2020, the output of Shagang, steel, and steel was 3107. Ten thousand tons, 37.22 million tons, 37.35 million tons, operating income of 240.6 billion yuan, profits and taxes of 18.9 billion yuan, providing a strong "steel support" for the development of the national economy and the accelerated formation of a new development pattern.

In 2020, Shagang will firmly establish the corporate development concept of “innovation-driven, environmental protection first” and implement the development strategy of “creating a high-quality base and building a green steel city”. While continuing to carry out green upgrades of production equipment and technology, and ultra-low emission transformations, Shagang has been focusing on refined management, continuously establishing and improving environmental protection organizations, implementing environmental protection responsibilities level by level, vigorously implementing clean transportation, and further improving gas, steam, slag, The five major recycling projects of coking by-products and industrial water, insist on saving energy and improving the efficiency of comprehensive resource utilization as important measures for environmental protection, vigorously develop circular economy, and complete comprehensive treatment projects such as steel slag treatment, coke oven desulfurization and denitrification with high standards. The environmental protection cost of steel reaches 280 yuan.

In 2020, Shagang will seize market opportunities and give full play to the advantages of coastal steel mills along the river. When exports are restricted at the beginning of the year, Shagang will seize opportunities to import and export large quantities at the end of the year.

"We react quickly according to the price changes in the domestic and foreign markets, and achieve the goal of ‘if you can’t get in, you can get in, and if you can’t get out, you can get in." Shen Wenrong said.