Wang Xiaoqi: The grim situation and new changes facing the steel industry
2023-08-13 09:08:41
Recently, Wang Xiaoqi, vice president of China Iron and Steel Association, gave a report titled "Severe Situation and New Changes in the Steel Industry."
I. The grim situation facing the steel industry
First, the price of steel has been falling. Since the third quarter of 2011 , the overall price of steel has shown a downward trend. As of September this year, the comprehensive steel price index fell below the 90- point mark, hitting a record low, with a cumulative decline of more than 1,600 yuan / ton.
Second, the industry's efficiency has fallen sharply. Especially in the past three years, although the large and medium-sized steel enterprises are slightly profitable, the overall industry efficiency is still declining.
Third, enterprises increasingly tense capital, accounts receivable and medium-sized enterprises from 85.7 billion yuan in 2011 to 111.2 billion yuan in 2012 and then to 2013 123.6 billion yuan; accounts payable 303.7 billion yuan from 2011 to 2012 the 433.9 billion yuan in 2013 and then to 4,500 yuan.
The main reason is overcapacity. At present, the crude steel production capacity is between 11.11 and 140 million tons. The concentration of the steel industry is low. The solution to the overcapacity problem in the steel industry depends on the market mechanism. After five or more years. A group of non-competitive enterprises gradually withdrew from the market.
Second, the new changes in the steel industry
Faced with the severe market situation, steel companies deepen reform, accelerate structural adjustment, and actively promote industrial transformation and upgrading. There are some positive changes or highlights in industries and enterprises. These changes reflect the direction of China's steel industry reform, transformation, and upgrading. The hope and future of the Chinese steel industry !
New change 1 - production and demand enter the peak platform period
From January to September , the country's crude steel output was 618 million tons, a year-on-year increase of 2.3% , an increase of 13.9 million tons; imported steel 11.1 million tons, a year-on-year increase of 5.0% , maintaining a small increase; exports of steel 65.34 million tons, a substantial increase of 39.3% .
From January to September , the net export of crude steel was 57.8 million tons, an increase of about 19 million tons year-on-year. In the same period, the national crude steel output increased by about 13.9 million tons. The apparent consumption of crude steel ( equivalent ) in the country in September was 59.92 million tons, down 5.82% year-on-year . From January to September , the apparent consumption of crude steel ( equivalent ) in the country was about 560 million tons, a decrease of 5.16 million tons from the same period of last year, a decrease of 0.9% . The apparent consumption of crude steel this year is declining, the first time in nearly a decade.
At present, the production capacity of crude steel is between 11.11 and 140 million tons, and the concentration of steel industry is low. According to the data of the National Bureau of Statistics, the crude steel production capacity is about 1.11 billion tons. According to the steel enterprise data of the three batches of the Ministry of Industry and Information Technology, the crude steel production capacity is about 1.14 billion tons. According to the calculation of steel investment institutions, the crude steel production capacity is 1.13 billion tons. One way to solve the problem of overcapacity in the steel industry is to rely more on market mechanisms. In addition, if it violates environmental laws, through a fair and just judicial process, after five or more years, a group of uncompetitive enterprises will gradually qiut the market.
Vice President Wang Xiaoqi hopes that the iron and steel enterprises "don't over-emphasize hopes for stimulus policies and ultimately rely on their own development."
New Change 2 - Impacts and Challenges on Technology and Management
In the past, steel enterprises focused on production and focused on technology investment and equipment luxury in equipment investment. They fully considered how to increase production in the use of raw materials. Now they have turned to profit-centered, more scientific and rational investment, and the use of raw materials. More consideration is given to economic rationality. The issue of high-priced raw materials around the steel industry is no longer a major problem in the steel industry.
The transformation and upgrading of downstream industries accelerated, and new requirements for steel products and services were put forward, including: (1) energy conservation, safety, environmental protection, and improved technical content; (2) convenience, solutions, one-stop service; (3) individuality (differentiation, differentiation, customized services; (4) brand, corporate culture.
This requires the steel industry to shift from a market-oriented to a user-centered one, and from the expansion of market share to the creation of value for users, from a wide range of products to the improvement of product and service quality. On the path, from "investment and construction line product sales return product quality objection disposal" to "start from the user's actual needs, early intervention, joint development to propose a comprehensive solution after-the-fact tracking, continuous improvement." Establishing a user-centric philosophy will be an important challenge for the steel industry.
The newly revised "Environmental Protection Law of People's Republic of China" will be officially implemented January 1, 2015, clearly defines the environmental issues are legal issues, corporate insurmountable red line. October 2012, Ministry of Environmental Protection released a series of new steel emission standards, and in 2012 October 1 implemented in phases. According to the original environmental protection standards, the enterprise's tons of steel will be invested in environmental protection costs of about 140 yuan to meet the environmental discharge requirements; according to the new national environmental protection standards, the enterprise's investment in environmental protection costs should be increased to 220-250 yuan, accounting for 6% of the industry's profits. 7% . The selection and development of advanced, practical and effective environmental protection technologies and equipment is an important task in the coming period, and this is also a major challenge that the steel industry must face in the future.
New Change 3 - Progress in Market Construction
The steel raw material market has entered a stage of oversupply, and the expansion of major global mines has been completed one after another. The market supply has increased, and the situation of oversupply has been presented; domestic mine investment and development efforts are strong.
The spot market has made positive progress, and the trading volume of iron ore spot trading platform (BO , GO) has steadily increased, and it has been widely recognized by the industry; the diversification of iron ore price index is actively promoting.
Financial derivatives cover the steel industry chain, and steel price changes have been synchronized. Steel e-commerce has sprung up everywhere, and the rapid development of domestic e-commerce platforms has triggered a shift in pricing and marketing models for steel companies, which will have a major impact on the operating methods and business philosophy of steel companies. The combination of industrial capital and financial capital has created the development of e-commerce.
With the rapid progress in the construction of the steel industry market, the problem of asymmetric supply and demand information and opacity of the price formation mechanism that has long plagued the steel industry has been initially resolved.
The steel industry market system is gradually improved, especially the full industrial chain coverage of futures and spot markets, the widespread use of financial derivatives, and the rapid development of e-commerce. It will have a huge impact on the marketing model and business philosophy of the steel industry. It is a reflection of the deep integration of industrialization and informatization, the high integration of industrial capital and financial capital in the steel industry, which is also a major challenge that the steel industry must face.
In the past two years, in the face of the difficult situation, the internal reform of iron and steel enterprises has advanced at an unprecedented depth and has achieved remarkable results. Baosteel introduced the management concept of the vitality curve, implemented the status evaluation and the final elimination mechanism, effectively mobilizing the enthusiasm of the employees, especially the middle-level cadres. Hebei Iron and Steel is aiming at the fundamental problems of the survival and development of iron and steel enterprises, such as the development model of high debt support, the production mode supported by high cost and high consumption, the inefficient resource allocation mode and the marketing mode that is out of touch with users. Focusing on the advanced nature of the production line, we will speed up the establishment of an organizational structure and management structure that is more adaptable to market changes, and the efficiency and vitality of the enterprise will be significantly enhanced.
Vice President Wang Xiaoqi firmly believes that with the joint efforts of all steel people, the future of China's steel industry will be even better.
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