Liu Zhenjiang, General Secretary of the General Iron and Steel Association of China and Secretary General Photo Source: Daily Economic News Reporter Peng Fei
The decline in the treasury caused the steel industry to fall into the precipice once again, but from the beginning of 2016, the performance of the 2018 industry has been fully improved and has achieved a 10-year success. It seems, too.
"The importance of the Chinese steel industry in 2018 in the last 10 years is a financial crisis." The 14th Bohai Sea Steel Market Forum and the Lange Steel Network 2018 Conference were held on November 24th. "On the occasion of the opening ceremony, the Chinese Association of Iron and Steel (hereinafter referred to as the Chinese Steel Association) summed up the secretary and secretary general of the party, Liu Zhenjiang.
"Daily Economy News" magazine has stated that, although it is not yet until the end of the year, Liu Zhenjiang said the industry's development judgment was unreasonable, compared to the same period of history, the steel industry's operating indicators have been successful since 2018. And fluctuation is minimal.
10 years of success in the steel industry
"Steel production has increased, steel prices have been reasonable, and corporate profits have improved, and the quality and efficiency of industrial operations are both more stable and better every year," said Liu Zhenjiang.
According to data from the Chinese Steel Association, the average output of raw steel products at the beginning of November was 1,196,400 tons in gross countries, rising by 0.57% in October. At the end of November, the steel stock in steel brackets totaled 12,228 million tonnes, an increase of 0.07% from the end of October.
On November 10, Qu Xiuli, the Vice President of the Chinese Steel Association, stated that gross steel crude continues to grow at an annual growth rate of around 900 million tonnes. In the fourth quarter, the efficiency of steel companies will be reduced and year-to-year growth will increase.
In exchange for the "Daily Economy News" magazine, the steelmaker of the meeting said the benefits are good, and it is not the intuition to see the participants' companies. "It's hard to find a row over the past few years, they can not get a toll meeting."
As the current steel industry has improved, Liu Zhenjiang believes that "business concept (business) is changing, but structural reforms in the field of supply provide a new look to the Chinese steel industry".
At the beginning of 2016, the Board of State proposed a total of 1 and 150 million tonnes of steel capacity in the twenty-five year plan. In 2016 and 2017, the cumulative reduction in the production of raw steel exceeded 120 million tonnes and more than 80% of the upper limit exceeded.
According to the information provided by the Ministry of Industry and Information Technology, it wants to reduce the capacity of 30 million tons of crude steel in 2018. In view of the reduction in current capacities, the objective of reducing the capacity of 150 million tons of steel production is projected to be over 2 years. In addition, in 2017, the 140 million tonnes of bands in the market order were suspended.
"In 2016, we changed the unstable state of 2015. We continued for two years in 2016 and 2017 and in 2018," said Liu Zhenjiang.
In the first nine months of the year, members of the Chinese Steel Association totaled 230,000 million yuan, an 86.01% year-on-year increase; Sales profits were up by 7.5%, 2.88 points more than the same period the previous year, and steel industry profitability was the average for industry.
Bohai Iron and Steel companies say the current economic news supply reform has changed the relationship between steel supply and demand. Improved provisions have been improved and steel prices have been widely accepted.
On November 21, the Chinese Iron and Steel Association published a report on October, the steel price of the Chinese steel company CSPI, 121.72 points, 0.08 points or 0.07%, and 5.76 points, or 4.97%. In fact, since 2017, steel prices have increased.
CSPI Steel Price Index Source: Chinese Iron and Steel Association
The market may have fluctuations in 2019
According to the Steel Association of China, after entering the domestic market at steel peak demand in October, steel production is still high and steel prices remain stable. Later, when the weather becomes cold and when the demand intensity is weakened, the steel price will fluctuate.
"Since the fourth quarter, the steel industry has constantly changed and overall volatility is not great, but in the fourth quarter and 2019 there will be more challenges." In front of hundreds of steel and steel trade representatives, Liu Zhenjiang said.
However, compared with the stable improvement of 2018, the market volatility of the steel industry in the face of supply reforms could be affected in the market in 2019.
Han Weidong, senior Lange Steel and vice president of Tianjin Youfa Steel, said the key issue is the same industry. The request is expected to be flat in 2019. If the output increases, the market will create a volatility.
There is a Weidong base in 2017, China's steel production of 832 million tonnes, and the last accelerator was not cleaned by water, China's steels output exceeds 900 million tonnes in 2018 for the first time.
At the same time, Han Weidong said "Daily Economic News" says the ability of steel companies to come into being at the end of the year and next year, which will inevitably increase steel production growth.
Chen Kexin, according to the head of the Lange Steel Economics Research Center, says that steel production of steel steel is very active, according to the company, "the profit per ton of steel products has reached 1,000 yuan, which is a good opportunity to increase production".
In fact, the increasing use of abilities is the original intention to eliminate excessive capacity. According to the Chinese Steel Association, between January and September this year, the steel industry's capacity-based capability was 78.1% higher than the average national industrial level. According to the previous plan of the Ministry of Industry and Information Technology, the production capacity of the steel industry will be less than 1 million tonnes in 2020, and the capacity utilization rate will reach 80% and the concentration of the top 10 steel companies will reach 60%.
Han Weidong said it is expected that the 2018 2018 steel demand will be aligned in 2019, but this output will break the balance and market inevitability will be inevitable.
The "Daily Economy News" magazine indicated at the end of 2018 that some signs of Han Weidong's market infrastructure were concerned. Lange Steel accelerated its market acceleration in November, with a 3.400 tons ton on Wednesday after three months of slowdown, and in three weeks the most cumulative decline was 360 yuan / t., The highest point in the current quarter was 4,110 yuan / Ringtones fell by more than 17%.
The steel trading company said the newspaper "Economy News" has said that the demand for current steel terminals is not good, the steel inventory is still piling up, the output level is high, and the market price fluctuation will increase.Go back to Sohuera and see more
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