The global steel industry has bottomed out
On April 29, the China iron and steel association conference held in 2015, the second information. “In the first quarter of this year, the national economic growth continues to fall, the operating condition of the iron and steel industry can be summarized as’ demand, the decline in output, falling prices, environmental pressure, the overall loss ‘.” China steel industry association executive vice President of Mr Zhu concludes that our country economy downward pressure is still large, steel association, the next step will continue to promote to speed up the formation of fair competition market environment, to do a good job in stabilizing market, production control, risk prevention, increase work efficiency.
Demand production prices down Energy conservation and emissions reduction performance outstanding
Data show that in the first quarter, the national economic growth continues to fall, economic downward pressure is still large. The steel market demand, the apparent consumption of crude steel by an enlarged than decline for all of last year, crude steel production in many years some fell, industry-wide losses.
Mr Zhu is summarized in the first quarter of this year seven characteristics on the performance of the steel industry.
One is the crude steel output fell by 1.7%. In the first quarter of the national production of 176.54 million tons of pig iron, fell 2.3% year on year, 200.1 million tons of crude steel production, fell 1.7% year on year, production 266.4 million tons of steel products (including repeat material), up 2.5% from a year earlier. In the first quarter of China’s crude steel production accounted for 50.02% of the world’s steel production. The second is steel export growth. In the first quarter of the national steel exports of 25.78 million tons, up 40.7% from a year earlier, but a monthly decline; Net exports amount to 23.49 million tons of crude steel, steel year-on-year increase of 8.15 million tons. Three is the iron and steel enterprise inventory levels higher than normal. The end of march, large and medium-sized steel enterprises inventory of 16.64 million tons, 3.75 million tons more than the earlier this year, 40000 tons more than the same period last year. Fourth, iron ore imports rose slightly. China’s imports of iron ore 227 million tons in the first quarter, up 2.28% from a year earlier. Import the average price of $69.69 / ton, down 45.1% year-on-year. Five is the steel industry investment in fixed assets decline further. Investment in fixed assets of 83.1 billion yuan, iron and steel industry in the first quarter fell 6.8% year on year. Six is steel prices continued to fall. End of march, iron and steel association CSPI steel composite price index was 75.43 points, 19.4 points lower than the same period last year. Seven is a steel business is very difficult. Large and medium-sized iron and steel enterprises in the first quarter profits for the loss of 987 million yuan, total loss-mitigation compared to the 7.046 billion yuan, the main business losses of 11.053 billion yuan, ZengKui 3.433 billion yuan. Losses of enterprises 50 households, accounting for 49.5% of the member enterprise number, loss of enterprise loss 10.355 billion yuan, up 27.31% from a year earlier. In addition, the end of march asset-liability ratio fell 1.33% year on year.
Although operating conditions is very difficult, but the steel industry outstanding achievements in energy conservation and emissions reduction, and comprehensive utilization of resources.
One is the energy consumption index continues to improve. Quarter steel association member enterprises total energy consumption fell 2.13% year on year, comprehensive energy consumption of per ton steel fell 0.88% year on year, comparable energy consumption of per ton steel fell 0.09% year on year. Sintering, ironmaking, converter steelmaking, electric furnace steelmaking and steel processing process energy consumption fell 1.30% year-on-year, 1.17%, 14.99%, 1.17% and 14.99%. Two is the main pollutant emissions continue to reduce. Emissions of sulfur dioxide discharge of waste water to reduce 7.51% year-on-year in the first quarter, down 27.19% year on year, YanFenChen emissions down 9.51% year on year. Steel slag production fell 4.80% year on year, blast furnace slag quantity fell 4.36% year on year, iron dust discharge mud fell 7.06% year on year. Three, use resources, secondary energy levels have further improved. Blast furnace gas utilization ratio increased by 1.83% year-on-year in the first quarter, coke oven gas utilization ratio increased by 0.74%, compared to the utilization rate of steel slag, blast furnace slag utilization, iron dust mud utilization, utilization rate of blast furnace gas, converter gas and coke oven gas utilization are maintaining high level.
Money environment restriction strengthen industry faces five big problems
Mr Zhu said, in the current industry under the situation of relative economic run slower, iron and steel industry is faced with the five problems.
One is slowed the downstream steel industry, steel demand fell. According to the measure, in the first quarter of the domestic crude steel apparent consumption of 177 million tons, down 6.2% year-on-year. In the first quarter, GDP growth of 7%, year-on-year growth than last year fell 0.4%; The national investment in fixed assets (excluding farmers) rose 13.5% year-on-year, growth fell 4.1% year-on-year; National real estate development investment grew 8.5% year-on-year growth rate dropped 8.3% compared to the same; Industrial output rose only 6.4%, year-on-year growth rate fell 2.3% year-on-year. Main steel industry growth has receded from a year earlier, while steel intensity is abate, the steel demand.
The second is the situation of low price and low efficiency are still not changed, enterprise management difficulties. Since 2015, steel prices continue to fall, steel price limit is greater than the cost of lower limit of the scissors again cause the overall losses, iron and steel enterprise and enterprise environmental cost and artificial cost is also rising.
Three is the enterprise financing difficulties, financing your problems are still prominent. Since November 2014, the central bank twice cut interest rates to help ease the iron and steel enterprise financing is expensive, but the enterprise reflects the effect has not been reflected and corporate finance issues did not ease.
Four is that the increase of the environmental restriction enterprise environmental pressures. Iron and steel enterprises on the one hand, a big increase in environmental protection investment, to carry out a new round of environmental protection of project construction, on the other hand operating costs also increased significantly, further intensify the pressure on the enterprise production and operation.
Five domestic iron ore mine is difficult to deal with foreign mining price competition. Imported iron ore prices by $133.1 / ton early last year to $51.2 / ton by late march, on the one hand to eat imported ore of iron and steel enterprises to reduce costs to create the conditions, on the other hand the domestic mining iron and steel enterprise management difficulties, especially the anshan iron and steel, shougang, taiyuan, hebei iron and steel and so on has its own raw material advantages of mining enterprises gradually disappear, and even become the burden of the operation and development. Domestic iron ore mine are facing losses, production, and even some production problems, countries on iron mine resource tax shall be levied at a reduced 40% after will play a role in relieving iron ore mine loss, but it’s still not enough to compete with foreign mining. “Iron ore external dependence will be more than 80%, which is unfavorable for the domestic steel industry security.” Mr Zhu said.
Economic downward pressure is bigger The characteristic of demand platform area is obvious
Mr Zhu pointed out that the whole, our country economy downward pressure is still large, the possibility decline in demand, the steel industry still faces a severe situation.
From the domestic perspective, new land acquisition area and site area are falling for two years, the decline of up to 32.4% and 32.4% respectively in the first quarter of this year, the late steel consumption will be hard pressed to real estate industry growth. Machinery industrial added value in the first quarter fell to 6.3%, year-on-year growth has fallen to 5.3% during the month in March, is the lowest growth since the financial crisis. In the machinery industry federation focused on statistics of 119 kinds of main products, production fell there are 57 species, accounted for 48%, the highest in recent years. Car production rose only 3.7% in the first quarter, growth slowed significantly. Shipbuilding industry new undertake orders fell by 76.8% in the first quarter, handheld orders fell by 2.5%. Electrical appliances product in air conditioners, refrigerators, freezers production are decreased, only the washing machine. Overall, steel demand is difficult to increase the downstream steel industry, steel consumption peak platform area characteristics significantly, there is the possibility of falling demand.
From external demand perspective, the beginning of 2015 countries cancelled the export tax rebate of some steel variety, steel exports in the first quarter from monthly decline, but rose is on the high side of the main reason is that in the first quarter of last year from a lower base. As cancel the tax rebate policy effect, and the international market of our country iron and steel products of double inverse cases an increase in trade disputes, and steel export growth will decline. But there is still demand due to the international market, and have spread both at home and abroad, China’s steel export competitiveness is still more apparent, exports will not significantly reduced. Enterprises should respect the rules of the local market, further completes the export product upgrades, improve proportion of high-end products.
Mr Zhu said the steel association will continue to reflect the enterprise demands, promote to speed up the formation of fair competition market environment. One is to continue to close down backward production facilities according to the requirements of relevant standards, called for as soon as possible for the second, third batch of cancel product list imported steel bonded under processing trade policy, calling for continue to reduce the burden of domestic iron ore mine enterprise tax, maintain domestic iron ore a certain market share; Second, deepen the reform of state-owned and state-owned iron and steel enterprises; Three is to avoid selective law enforcement; Fourth, improve the exit mechanism; Five is for energy conservation and environmental protection, comprehensive utilization of resources, increase the intensity of the fiscal and taxation policy support.
Secondly, steel association will make full market, production control, risk prevention, increase work efficiency. Strengthen the monitoring analysis of operation under the new normal iron and steel industry, the market changes that may occur in a timely manner information guide. “No contract production, below the manufacturing cost is not production” as an industry the important measures to jointly cope with grim situation, completes the special product, regional market coordination and self-discipline. To strengthen enterprise guard against risk management guide, guide rational purchasing and sales enterprise. Continue to the exploration activities, and promote the further improve the enterprise benefit.
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