The Pace Of Adjustment And Upgrading Of The Steel Industry Accelerated

Dec 26, 2023

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Since the beginning of this year, the national economy has picked up, the steel industry has shown strong development resilience, and the operation is basically stable, but it also faces certain difficulties and challenges, and the foundation for the recovery of operation needs to be consolidated. In August this year, the Ministry of Industry and Information Technology, the National Development and Reform Commission and other seven departments jointly issued the "Iron and Steel Industry steady Growth work Plan", which has played a positive role in studying and judging the industry situation, improving operating conditions, promoting stable operation, and clarifying the development direction. Fan Tiejun, president of the Metallurgical Industry Planning and Research Institute, said that the iron and steel industry has entered a deep adjustment period, and the adjustment focus will be more focused on structural optimization and quality improvement. Industry enterprises should seek progress while maintaining stability, accelerate high-quality development, and build new advantages in high-end, green, and intelligent development.

In the first 10 months of this year, China's crude steel production of 874 million tons, an increase of 1.4%; The apparent consumption of crude steel was 803 million tons, down 2.0% year-on-year; Exports of steel 74.732,000 tons, an increase of 34.8%. Overall, China's steel supply is stronger than demand, the rise in domestic manufacturing steel demand and steel export growth has become the main driving force to support the growth of steel production, construction steel demand contraction has become the main factor in reducing consumption. The actual downward shift in the cost focus of steel enterprises is smaller than the decline in steel prices, and the overall profit of the industry declined year-on-year. According to the statistics of China Iron and Steel Industry Association, from January to October this year, the total profit of key statistics member steel enterprises was 71.9 billion yuan, down 26.8% year-on-year; The average profit margin was 1.33%, down 0.47 percentage points year-on-year.

Relevant state departments timely launched the "Iron and Steel Industry steady Growth work Plan", which strongly boosted the confidence in the development of the industry. Cisa related report analysis that as the state grasp the stability of the economic "package" policy and follow-up measures fully implemented, showing the effect, help steel demand gradually recover. On June 6 this year, Masteel's new special steel project (Phase I) was put into operation and has now achieved phased production. The total investment of the project is 9.269 billion yuan, and after all production, the production capacity of Masteel special steel will exceed 4 million tons. On December 9, the first batch of finished products from the seventh factory of Zhongtian Huaian Steel Cord Line came off the line. Zhongtian Steel fine steel cord project products are mainly used in radial tire applications.

Sheng Rongsheng, general manager of Zhongtian Iron and Steel Group (Huai 'an) New Materials Co., LTD., said that Zhongtian Iron and Steel actively enters the downstream deep processing field, and all fine steel cord projects are expected to achieve annual sales of more than 20 billion yuan. The practice of the above enterprises is only a microcosm of the steel industry actively adapting to market changes and accelerating the upgrading of quality and efficiency. Better meet the demand for high-end steel. The number of steel varieties for shipbuilding, automobile, home appliances and other manufacturing industries and wind power, photovoltaic and other emerging industries continues to grow. In the first three quarters, the output of electrical steel plate (strip) increased by 14.3% year-on-year, hot-rolled sheet increased by 18.2% year-on-year, and cold-rolled narrow steel strip increased by 15.7% year-on-year. From the perspective of export varieties, the growth of hot-rolled coil and medium and thick plate is more obvious, the export of coated plate maintains a steady growth, and the export proportion of high value-added products is significantly increased.

Actively promote intelligent transformation. At present, the application density of robots in the steel industry has reached 54 units (sets) / 10,000 people, 90% of steel enterprises have established a production and manufacturing execution and energy control system, and enterprises above 5 million tons have basically established a control connection system. Iron and steel enterprises actively promote the deep integration of digitalization, intelligence and other new generation information and communication technologies with the entire process of steel manufacturing, forming a platform management and control architecture that includes intelligent production, quality control, equipment operation and maintenance and other integrated services, which has achieved improved production efficiency, improved energy efficiency, improved quality stability, and reduced employee labor intensity.

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