The hottest steel can't sell at cabbage price. Key

2022-10-03
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Steel can't sell cabbage price: key steel enterprises lost 16.5 billion yuan in the first five months

steel can't sell cabbage price: key steel enterprises lost 16.5 billion yuan in the first five months

China Construction machinery information

affected by the continuous decline in steel prices, in the first five months of this year, 101 member steel enterprises counted by China Steel Association realized a total revenue of 1.3 trillion yuan, a year-on-year decrease of 16.9%, and the total profit after offsetting the profit and loss was only 528 million yuan; However, the main business losses of these large and medium-sized steel enterprises were 16.481 billion yuan, with an increase of 10.361 billion yuan

key steel enterprises increased losses by 10billion in the first five months

due to overcapacity in the steel industry, steel prices have continued to decline for months. At the second Executive Council of the fifth session of CISA held on September 9, zhangguangning, President of CISA, chairman of Angang Group and Secretary of the Party committee, revealed that from January to May this year, steel prices continued to hit new lows, with losses of nearly 16.5 billion and an increase of 10.36 billion for the owners of national key steel enterprises

chenderong, general manager of Baosteel Group, said, "screw thread steel has fallen to 1900 yuan/ton. Previously, the price of cabbage was said to be lower than that of steel at 1 yuan/Jin. Steel enterprises have reached the node where they must rely on reform and innovation to achieve transformation and upgrading."

"the current steel market, leading Baosteel's life is not easy." Chen Derong revealed that on the eve of the meeting, he had just received a text message from the head of Shaogang, "they told me that Shaogang's No. 3 blast furnace was about to shut down, and Bayi Iron and steel also planned to shut down some of its production capacity in southern Xinjiang in the near future." The representative from Liuzhou Iron and Steel Group also said in his speech that Liuzhou Iron and Steel Group also has two blast furnaces to reduce production recently, "steel enterprises need great courage to reduce production, and the loss is also very large."

according to the data of China Steel Association, from January to May this year, the national crude steel output was 340 million tons, a year-on-year decrease of 1.6%, which was also the first decline in crude steel output in recent 20 years

the speed of steel enterprises' production reduction did not catch up with the decline in steel prices. In the first half of this year, the price of steel held the price of universal data testing machine, which continued to hit a new low in the market. The steel composite price index fell from 83.09 at the end of last year to 66.69 at the end of June, a decrease of 19.7%, which has exceeded the decline of last year. Affected by the decline in steel prices, the total revenue of national large and medium-sized key steel enterprises included in the statistics of China Steel Association in the first five months was 1.3 trillion yuan, a year-on-year decrease of 16.9%, and the total profit after offsetting profit and loss was 528 million yuan

however, the main business losses of these 101 key steel enterprises were 16.481 billion yuan, with an increase of 10.361 billion yuan. Among them, there are 40 loss making enterprises, accounting for 39.6% of the number of member enterprises in the statistics, and the output of loss making enterprises accounts for 35.99% of the steel output of member enterprises; The loss of loss making enterprises was 14.959 billion yuan, an increase of 40.45% year-on-year

the weak demand in the downstream market of steel has greatly increased the export enthusiasm of steel enterprises. However, steel exports are also facing huge trade friction pressure. According to statistics, in the first five months of this year, the national net export of steel was equivalent to 39.61 million tons of crude steel, a year-on-year increase of 36.68%; However, the export growth has directly led to the increasing trade frictions against China's steel products. In the first half of this year alone, there were as many as eight trade remedy investigations against Chinese steel products

zhangguangning, President of Sinosteel Association, said in his speech that the situation of the steel industry in the second half of this year will still be very severe. Steel enterprises should actively adapt to the new normal of China's economic development and actively carry out structural adjustment, transformation and upgrading. "The leaders of steel enterprises should not dwell too much on the gains and losses of short-term difficulties, and should realize that structural adjustment will inevitably be accompanied by painful exploration and struggle. To achieve success, there is no need to advance in my realm, stick by stick, until the goal of enterprise transformation and upgrading is achieved."

in fact, in order to achieve transformation. Many iron and steel enterprises are taking various measures to reduce costs and increase efficiency to promote transformation and innovation. For example, Hebei Iron and steel strengthened capital management and control to ensure that the annual total financing was compressed by more than 10billion yuan; Maanshan Iron and steel group increased its efforts to clear the debt, and the accounts receivable decreased by 50%. In terms of development mode, Angang Steel focused on building smart mines, and Hebei Iron and steel completed the equity delivery of Degas. From January to April this year, Shandong Iron and steel achieved a substantial increase in the profits of the financial sector

betting on specific choices requires users to comprehensively consider the strategic opportunities of the "the Belt and Road"

it is worth mentioning that some steel enterprises are actively planning to "go global" to expand overseas markets. In the experience sharing speech of "going out" of steel enterprises, Li Yiren, President of the Strategic Research Institute of Hebei Iron and Steel Group, revealed that by the end of last year, Hebei Iron and steel group had invested a total of US $900million abroad and participated in 73 companies. In the future, Hebei Iron and Steel Group plans to achieve the goal of $20billion in overseas revenue within five years

Zhang Guangning also called on steel enterprises to seize the major development opportunities of the the Belt and Road strategy. He said that the the Belt and Road strategy involves more than 60 countries along the route, plans six major economic corridors, and the investment scale may be as high as $6trillion. The steel industry should actively pay attention to and participate in it

Yu Yapeng, chairman of CITIC Pacific special steel group, said in his speech that CITIC Group was ready to invest 600billion yuan to help its subsidiaries build the the Belt and Road project. The company is actively improving product quality to improve its internal skills for participating in the the Belt and Road. "Our export proportion is about 20% this year. We hope to take advantage of the the Belt and Road, and the proportion of product exports in the total output will gradually increase to 25% in the next three years."

according to great wisdom, after three months of summarizing, revising and improving opinions, the action plan for the transformation and development of the iron and steel industry () has been formulated and entered the final stage of deliberation, which is expected to be issued in July. It is reported that Luo Tiejun, deputy director of the Department of raw materials industry of the Ministry of industry and information technology, disclosed in March that in the first draft of the action plan for the transformation and development of the iron and steel industry (), the overall goal includes seven aspects: overcapacity, the integration of industrialization and industrialization, mergers and acquisitions, and strive to reduce 80million tons of iron and steel production capacity after three years of efforts. PolyOne is the exclusive licensor of Patel's flex bioplasticizer in North America and Asia, so as to alleviate the contradiction of overcapacity; At the same time, we will accelerate the merger and reorganization in the industry, and the number of iron and steel enterprises will be controlled at about 300

great wisdom asdak news agency said, "according to an authoritative person of the Ministry of industry and information technology, the specific data of 80million tons will no longer be set in the final draft, but the production reduction target proposed in the guiding opinions will still be achieved.

Chen Derong, general manager of Baosteel Group, said," in the process of resolving the excess capacity of iron and steel, it must be the only way for this machine to put the test products on the experimental table and reorganize. " Does Baosteel plan to merge some small and medium-sized steel enterprises in the near future? Chen Derong said with a smile, "that's a trade secret."

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