• Categories:company news
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• Origin:耐材之窗
• Time of issue:2018-03-29 16:39
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(Summary description)　

　　The All-China Federation of Industry and Commerce Metallurgical Chamber of Commerce held a press conference today (29th) to announce the operation of private steel companies in 2017. Significant improvement in economic efficiency and increased investment in environmental protection are the two highlights of private steel companies. At the same time, there were also responses to some recent hot spots in the steel industry, such as inventory and price trends, and corporate restructuring.

　　In 2017, the output of crude steel by private enterprises reached 471 million tons, a year-on-year growth rate lower than the national average. The output of steel reached 703 million tons, a year-on-year decrease of 1%, showing the remarkable results of reducing overcapacity and banning local steel. However, there are also differences within private enterprises: both the crude steel output and the steel output of key private enterprises have increased by more than 7%; the steel output of other small enterprises has fallen by more than 6% year-on-year. Wang Lianzhong, executive deputy secretary-general of the Metallurgical Chamber of Commerce of the All-China Federation of Industry and Commerce, pointed out that the concentration of production in advantageous enterprises is a welcome phenomenon, indicating that enterprises with good production conditions and high quality steel products have a higher growth rate than those with relatively low production conditions and low product quality. Iron and steel companies have changed the phenomenon of "bad money drives out good money".

　　Under the combined effect of various factors, the profitability of private steel enterprises increased significantly last year. The labor cost per ton of steel is about 200 yuan lower than the industry average, and the average profit per ton of steel is 430 yuan, a year-on-year increase of 336 yuan.

　　At the same time, private steel companies continue to increase investment in environmental protection. The environmental protection costs per ton of steel for steel companies in Anyang, Handan, and Tangshan have risen to 120 yuan, and some steel companies have even reached 150 yuan.

　　Regarding the trend of the steel industry this year, Song Lei, the vice chairman of the Metallurgical Chamber of Commerce of the All-China Federation of Industry and Commerce, initially judged that the price of steel will remain above 3,000 yuan per ton. "The overall prosperity of the industry market this year should not be as good as 2017, including the price may have to go to the next level, and the profit level may have to go down two steps. But the market situation will not be worse, that is, steel companies will maintain a reasonable level. This year’s profit will be around 300-500 yuan per ton of steel. It will not happen that large-scale losses in 2015 and 2016 or steel prices fall below the prefix 2 will not occur."

　　However, in recent times, the social stock of steel has increased significantly year-on-year, and domestic steel prices have continued to fall. A research report shows that from an absolute index, the current increase in social inventories in the steel market is 154%, the highest level in 4 years. In this regard, Song Lei said that the increase in inventories was mainly due to the increase in winter storage by middlemen last year. However, the recent decline in steel prices has caused the middlemen to face losses and are unwilling to dump goods at low prices. Therefore, destocking has entered a stalemate. He predicts that the situation in April may get better. "The demand is not as bad as everyone thinks, and it is only in a stalemate. If there is not a large amount of production release, but if the demand accelerates, it may be destocked. The speed will increase. Destocking may accelerate in April."

　　It is understood that the steel industry will also usher in a major relocation and major reorganization this year. The major relocation is the transfer of production capacity across provinces, cities and counties and moving out of cities. At present, some provinces and cities have already made relocation plans and set clear deadlines for relocation. The major reorganization means that the scope of mergers and reorganizations of steel enterprises will be larger. Wang Lianzhong said that 70 to 80 of the more than 200 private steel companies have begun restructuring or have made significant progress, and there are still a large number of companies in the process of brewing and negotiating. "Almost every one is studying how to further merge and develop. Research on a reasonable combination of production capacity. The amount and the results are unprecedented in the steel industry in the past."