Blockbuster!Three pain points of Chinese steel!

At present, the main problems facing the steel industry are also relatively prominent, three pain points:

Pain point 1: the production capacity of the industry is greater than the demand, and the contradiction between supply and demand in the operation of the steel industry is relatively prominent;

Pain point 2: the industry concentration is low. The output of the top 10 steel enterprises accounts for only 36%, which leads to the lack of discourse power of raw materials purchased from outside and fierce competition in product sales market.

Pain point 3: the resource security problem is prominent, mainly the dependence of foreign ore is as high as 80%, the high price of foreign ore greatly compressed the profits of iron and steel enterprises.

In view of the above three pain points, the iron and steel industry should do the following main work:

First, we will continue to cut overcapacity.

From January to November in 2020, China will produce 961 million tons of crude steel, which is expected to be close to 1.05 billion tons for the whole year.More than 5% higher than last year.

At the end of 2015, the iron and steel production capacity was cut. At that time, the crude steel production capacity was 1.2 billion tons. In 2015, the crude steel production capacity was 803.8 million tons, and the converter utilization coefficient in that year was only 67%, indicating serious overcapacity.

During the 13th Five-Year Plan period, the steel-making capacity should be reduced by more than 150 million tons (including medium-frequency furnace floor strip steel). Considering the replacement policy of partial capacity reduction, the current steel-making capacity should be less than 1.05 billion tons.The fact is that crude steel production this year will be close to 1.05 billion tons.It is estimated that the current crude steel has more than 1.2 billion tons of capacity.

How has capacity been increased?One is to improve the converter utilization coefficient, shorten the smelting time to exceed the design capacity;The second is to increase the ratio of scrap steel to increase production energy when the molten iron is insufficient.Third, new smelting capacity;Fourth, other means to increase energy production.

How to strictly control capacity increase?First, strict standards and policies for replacing production capacity and ensure their implementation, prevent the actual capacity of new equipment from exceeding the stipulated capacity, and ensure the timely withdrawal of old production capacity;Second, strict examination and approval to prevent zombie enterprises and other non-compliant production capacity from entering the replacement of production capacity, and unified accounting with the production capacity recorded in various places;Third, strict electric furnace steelmaking capacity approval, to prevent the medium-frequency furnace, strip steel revival;Fourth, we will supervise the linkage between production capacity and output of enterprises.

Second, to improve the concentration of the steel industry as soon as possible:

In order to ensure the healthy and stable operation of the steel industry, the output of the top 10 enterprises in the industry should account for more than 60% of the total as soon as possible, so as to enhance the discourse power of the industry on the upstream and maintain the dominant market.

In 2019, China produced 996.3 million tons of crude steel, and the top 10 steel enterprises produced about 362 million tons of crude steel, accounting for 36.4 percent.The industry concentration level needs to be further improved, with the top 10 enterprises increasing their crude steel output by 238 million tons in order to ensure that the output of the top 10 enterprises accounts for 60% of the total industry.

Combined with mixed to the general requirements of enterprises, on the basis of regional steel mills voluntary cooperation, to enhance the imported ore purchasing power as the power, in order to reduce the domestic steel market malignant competition as the goal, on the basis of connotation of green manufacturing, intelligent manufacturing and requirements, steadily push forward integrated iron and steel enterprise reorganization, iron and steel enterprise's production capacity by 2025's top 10 profiles: 1 ~ 3: with an annual output of 080 million tons of crude steel, 3 companies amounted to 260 million tons.4 ~ 6: The annual output of crude steel is more than 50 million tons, and the total output of 3 enterprises is more than 180 million tons.7 ~ 10: The annual output of crude steel is more than 300 million tons, and the total output of 4 enterprises is more than 160 million tons.The total of 10 enterprises is more than 600 million tons, accounting for more than 60%.

Specific integration and reorganization requires strengthened communication and consultation among enterprises, active planning and guidance by local governments, and coordinated promotion by superior departments across regions.It is time to increase the concentration of the steel industry as soon as possible.

Third, solve the problem of resource security:

First, it is necessary to strengthen domestic ore production and reduce the dependence of foreign ore.

Second, qualified enterprises should increase the production of foreign mines.

Third, loosen the import policy of scrap steel, so as to reduce the dependence on gold powder.For this reason, the state has introduced relevant policies and standards to finally realize the return of the price of foreign ore to a reasonable price, so as to realize the mutual benefit and win-win of the industrial chain between mine production and steel production.

Conclusion: solve the above three pain points, the operation of steel industry will be more green, intelligent, healthy, stable, and more competitive in the world!