On November 10, quxiuli, vice president of China Iron and Steel Association, said at the 2018 (seventh) China Iron and steel technology high end forum that the operation quality of China's iron and steel industry was significantly improved in 2018, steel production maintained sustained growth, production and demand were well connected, steel prices fluctuated slightly, and the benefits of iron and steel enterprises were improved. Li Xinchuang, President of metallurgical industry planning and Research Institute, said that China's iron and steel industry has entered a new stage of reduction and innovative development. It is necessary to deepen the supply side structural reform and establish a long-term mechanism to prevent excess
the operation quality of the steel industry has been significantly improved
Qu Xiuli said that the asset liability ratio of the steel industry decreased in 2018, and the solvency of the steel industry has been significantly improved. The debt ratio of the steel industry in September was 66.11%, down 3.91% year-on-year; The current ratio was 79.59%, up 9.83% year-on-year; The quick ratio was 57.43%, up 8.26% year-on-year; Accounts receivable increased by 0.7% year-on-year, and accounts payable decreased by 3.81% year-on-year
although the export volume of steel has decreased this year, the export price and export amount have maintained growth; Import prices also increased, but the increase was lower than that of exports. In June, the average price of China's exported steel increased from $693 per ton to $870, a year-on-year increase of 25.7%; The export amount increased by 12.2% year-on-year. The average price of imported steel increased from US $1116 per ton to US $1259, an increase of 12.8% year-on-year; The import amount increased by 12.3% year-on-year
at the same time, China's steel industry adheres to green development and vigorously saves energy and reduces emissions. In June, the comprehensive energy consumption per ton of steel in China's iron and steel industry was 558kg standard coal/ton, down 2.77% year-on-year; The new water consumption per ton of steel was 2.79 cubic meters/ton, a year-on-year decrease of 5.52%. The emission of chemical oxygen demand was 6708 tons, a year-on-year decrease of 18.87%; Carbon dioxide emissions were 246200 tons, a year-on-year decrease of 12.57%. The utilization rate of steel slag increased by 0.92% year-on-year, and the utilization rate of blast furnace gas increased by 0.27% year-on-yearQu Xiuli said that the main reasons for the improvement of steel operation quality are: first, the global economic recovery and the growth of steel demand. In June, the global crude steel output was 1.347 billion tons, and the designers selected materials that can reflect the excellent performance of cars, with a year-on-year increase of 4.7%. Second, China's economy is stable and positive, and the demand is relatively stable. In August, China's total import and export value increased by 11.3% year-on-year, and the growth rate of import and export both increased. Third, we will continue to reduce excess capacity and prevent the resurgence of steel bars. A total of 747 steel strip enterprises have been banned nationwide, involving a production capacity of 140 million tons. Fourth, we will fight pollution prevention and control to curb the release of production capacity. Fifth, steel enterprises should keep their eyes inward and constantly improve their quality. After a long period of time (maybe a few minutes), the data can be added to the report for efficiency
for the future market, Qu Xiuli said that it is expected that the steel demand will not change greatly and will remain relatively stable, but the variety will still be better than the plate in the long material market. Steel prices will continue to fluctuate slightly and will not rise or fall sharply. In the fourth quarter, steel made wood flour absorbent, and the benefits of iron enterprises will decline month on month, maintaining growth throughout the year
a long-term mechanism to prevent excess needs to be established.
Li Xinchuang said that from the industry level, the steel industry operated smoothly in the first three quarters. In the first three quarters, China produced 579 million tons of pig iron, 699 million tons of crude steel and 821 million tons of steel, with year-on-year increases of 1.19%, 6.07% and 7.21% respectively. Supply and demand were basically balanced, and steel prices were in a reasonable range. "Although the industry shows a warming trend, we should keep a clear head. There are still many problems and challenges in the industry, such as environmental protection, impulse of capacity expansion, high debt ratio, trade environment, macroeconomic downside risks, etc. China's steel industry has entered a new stage of reduction and innovative development. We should deepen supply side structural reform, innovation driven, and promote the transformation of the industry to high-quality development."
CISA also said that the impulse of capacity expansion of Brinell hardness testing work mainly used for aluminum alloy, titanium alloy and alloy structural steel ring parts driven by profits, illegal electric furnace and "ground bar steel" still exist. As of late October this year, the association has received 86 tips. On the one hand, it shows that illegal production capacity still exists to varying degrees. On the other hand, it shows that the prohibition of new production capacity and the prevention of the resurgence of "ground steel" cannot be relaxed, and it should be adhered to for a long time
in addition, the asset liability ratio of the steel industry is still high. At the end of the third quarter, the asset liability ratio of the steel industry was still more than 10 percentage points higher than the average asset liability ratio of Industrial Enterprises above national scale. Deleveraging is the key to preventing risks in the future. At the same time, the financing cost of the steel industry is still high, and the financial expenses of member steel enterprises increased by 12.5% year-on-year in the first three quarters
Li Xinchuang said that a long-term mechanism to prevent excess must be established. This industry recovery is not the same as before. The previous recoveries were mostly due to the cyclical increase in demand driving fixed investment and consumption growth, which led to the recovery of steel. This time, it was mainly due to the structural supply upgrading driven by capacity reduction and environmental protection. If we do not take advantage of the current good momentum to adjust the structure of the steel industry and consolidate the achievements in time, the steel industry is likely to fall into a dilemma again as before, Not only will the previous efforts to increase production capacity be wasted, but the future readjustment will also be more difficult, even in the distant future
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