Steel Association held a symposium to predict the steel market trend in the four

On October 18, the China Iron and Steel Industry Association held a symposium on the economic operation of some iron and steel enterprises in the third quarter in Beijing. He Wenbo, Secretary of the Party committee of Steel Association, Qu Xiuli, vice president, and heads of relevant departments attended the meeting. 19 heads of steel enterprises including Baowu, Angang, Shougang, hesteel, TISCO, Shagang, Masteel, Hualing, Shangang, Baogang, Bengang, Anyang, Jianlong, CITIC Pacific, Xinyu, Liugang, Sansteel, Xining Special Steel, Chuanwei attended the meeting to analyze the economic operation of steel enterprises in the first three quarters and predict the steel market trend in the fourth quarter and next year, In view of the main problems encountered in the current production and operation and promoting the high-quality development of the industry, suggestions and suggestions are made.
He Wenbo said in the summary of the meeting that from the perspective of the situation reflected by the enterprise, everyone has a relatively consistent understanding of the situation. The industry can form a consensus on the possible situations and measures to be taken in the future. In the face of severe and complex domestic and international environment, we should be ready to deal with the crisis. At the same time, we should have confidence in the development of the industry. China's economy will not fall precipitously. The development of China's steel industry has reached the international advanced level. As long as the steel industry keeps self-discipline and takes rational actions, it can cope with the downward pressure of the economy. For the problems and suggestions put forward by the enterprise, the association will further play the role of bridge and platform advantages, actively promote relevant work, and work with the enterprise to maintain the smooth operation of the industry.
The delegates at the meeting said that in the first three quarters, domestic steel production continued to maintain a high level. Affected by the slower growth of downstream demand such as automobiles and home appliances and the aggravation of trade situation, the characteristics of strong market supply and weak demand were more significant, and steel prices showed a low volatility trend. At the same time, iron ore, coke and other raw and fuel prices are running at a high level, the market operation environment faced by iron and steel enterprises is more severe, and the profitability and benefit level have declined significantly.
At present, the following problems exist in the economic operation of iron and steel industry: first, the high fluctuation of iron and steel output, the steady growth of superimposed demand, which increases the competitive pressure of enterprises. Second, the aggravation of the global trade situation has had a negative impact on exports and intensified competition in the domestic market. Third, environmental protection and production restriction still have a great impact on the production and operation of enterprises. Fourth, the high price fluctuation of raw materials and fuels such as iron ore and coke has increased the operating pressure of enterprises. Fifthly, there are still problems in the implementation of the tax reduction and reduction policy, such as the price of large industrial power including tax remains unchanged, and the logistics cost obviously rises. Sixthly, financial institutions are still cautious in lending to the real economy, and the development funds of enterprises are relatively short.
In the face of severe business environment, iron and steel enterprises have taken multiple measures to maintain the stable operation of production and operation. First, we will continue to reduce costs and increase efficiency, promote cost reduction throughout the whole system and process, and create a new cost-benefit competitive advantage. Second, we should actively promote reform measures, improve the market-oriented management mechanism, consolidate the achievements of "dealing with difficulties" and resolutely block the "bleeding point". Third, adhere to the market-oriented, user-centered, in-depth docking market demand, based on the product structure of high-quality, differentiated and high-end, speed up the adjustment and optimization of product structure. Four, we should adjust and optimize the structure of export products, strengthen the linkage between domestic and foreign trade, and accelerate the development of potential markets such as South America and "along the way". Fifthly, we should focus on cash flow, strengthen capital management, broaden financing channels, and continue to reduce leverage and liabilities. Sixthly, diversified development, continuous expansion of the upstream and downstream industrial chain with a high degree of relevance to the main iron and steel industry, and accelerating the construction of a strategic emerging industrial ecosystem based on steel materials. Seventh, we will vigorously promote the transformation of intelligent equipment, increase investment in technological transformation, and accelerate the construction of intelligent unmanned factories and green factories.
For the trend of steel market in the fourth quarter of this year and next year, the representatives at the meeting believed that in the fourth quarter of this year, affected by the limited production in heating season and the traditional off-season of downstream demand, the state of strong supply and weak demand in the steel industry will continue, and the steel price will remain low and fluctuate slightly. In 2020, due to the uncertainty of the trade situation, the international steel demand will remain low, coupled with the increasing downward pressure on the domestic economy, the contradiction between supply and demand in the steel market will intensify, and the operation of the industry will face challenges.
At the meeting, the participants also put forward policy suggestions on strengthening industry self-discipline, improving industrial concentration, tax reduction and fee reduction, rising cost of raw and combustion materials such as iron ore, capital credit policy, opening up international market, promoting green development, and positively promoting the image of the iron and steel industry.
(source: China Metallurgical News)