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Expert: come up with practical measures to deal with the rising pressure on the cost of the steel industry

"in the first quarter of this year, the steel industry showed a relatively stable trend of operation, and the output and export volume increased. However, due to the sharp rise in the price of imported iron ore and other raw and combustible materials, the profit margin of steel enterprises was squeezed and the benefits significantly decreased. In view of this situation, the steel industry must work hard to further promote cost reduction and efficiency increase." At the first quarter information conference held by China Iron and steel industry association a few days ago, quxiuli, Deputy Secretary General of China Iron and Steel Industry Association, said

at present, the development of steel industry still needs to solve several major problems

first of all, the sharp growth of steel production in the first quarter is bound to overdraft the steel demand in the later period. GDP in the first quarter increased by 6.4%, while crude steel production increased by 9.92% year-on-year. With the gradual decline of the intensity of GDP demand for steel, the high growth of steel demand in the first quarter will be difficult to sustain

second, due to the current small volume of environmental protection of iron and steel, the implementation of the policy is not scientific and reasonable enough, which does not fully reflect the reward for the good and the punishment for the bad. The frequent production and transportation restriction policies in some regions not only significantly increase the operating costs of steel enterprises, affect the operation effect of environmental protection equipment, but also lead to an increase in potential safety hazards. In Qu Xiuli's view, if the pressure oil is limited in stages, it is imperative that the pressure oil enters the working cylinder from the glassy transparent oil port with a film for the first time and acts on the lower end face of the working piston. It should also be controlled and treated differently according to the emission level, so as to achieve the effect of more emission reduction under the same total production limit. At the same time, we should avoid the simple relocation of urban steel plants, strengthen policy guidance and technical support, and improve the level of environmental protection, so as to promote the high-quality development of the steel industry

third, the risk of overcapacity in the steel industry still exists, which deserves the high vigilance of the whole industry. In the first quarter, the investment in fixed assets of ferrous metal smelting and rolling industry increased by 30.6%. The "ground steel" wants to revive and some enterprises are willing to use electric furnaces. We must be strictly vigilant against a new round of serious overcapacity

fourth, in the first quarter of this year, China produced 195 million tons of pig iron, an increase of 9.29% year on year; Crude steel production was 231 million tons, an increase of 9.92% year-on-year; Steel production was 269 million tons, an increase of 10.82% year-on-year. In terms of export volume, the national net export of steel was 14.13 million tons, equivalent to 14.72 million tons of crude steel, an increase of 2.56 million tons year-on-year, which was the first increase after the decline of steel exports for three consecutive years. Although the iron and steel industry operates smoothly, due to the sharp rise in the price of imported iron ore and other raw and fuel materials in the first quarter, the price rose from more than $60 a ton to more than $90 a ton, and the price of domestic ore also increased correspondingly, resulting in a sharp rise in the cost of steel production. The prices of raw and auxiliary materials such as coal, coke, scrap steel and ferroalloy have also been at a high level. Member iron and steel enterprises achieved a sales revenue of 968.5 billion yuan, an increase of 12.81% year-on-year; The sales cost was 877.4 billion yuan, a year-on-year increase of 18.18%, and the cost growth was greater than the income growth. The sales profit margin of member steel enterprises was 3.87%, a year-on-year decrease of 2.39 percentage points

Qu Xiuli said that next, the work will be carried out in accordance with the policy of "controlling production, stabilizing operation, improving quality, reducing costs and increasing benefits"

-- continue to practice internal skills and vigorously promote cost reduction and efficiency increase. This year, the cost of the iron and steel industry is under great pressure to rise. It is necessary to continue to further promote the work of mining energy-saving potential against the estimation standards, and vigorously reduce production costs, especially procurement costs. "This year, the state has successively introduced measures to reduce fees and taxes. The iron and steel industry should actively strive for practical results, expand the market, optimize the variety structure, increase the added value of products, and improve efficiency through increasing income." Qu Xiuli analyzed

-- reasonably control the pace of production and maintain market stability. Maintaining the balance between supply and demand is an important prerequisite for maintaining the stability of the steel market. As the country has successively introduced a series of positive macro policies to stabilize growth and expand domestic demand, it is conducive to the stability of market demand. The whole steel industry must remain calm, strengthen self-discipline, reasonably control the pace of production, organize production according to market demand, strive to promote the balance between supply and demand, and maintain the stability of the steel market

-- continue to deepen the supply side structural reform. Although 150 million tons of steel overcapacity has been resolved nationwide in three years, it is still necessary to actively cooperate with the special spot check to consolidate and resolve the achievements of steel overcapacity in 2019. The special spot check has a simple and fair shape and structure, gives full play to the role of the "ground bar" illegal and illegal production capacity reporting platform, timely feeds back the reporting information, cooperates with government departments to verify the reporting clues, and severely investigates and deals with negative examples. At the same time, in accordance with the requirements of the central government to "urgently grasp and deal with the bull nose of 'zombie enterprises', promote the" zombie enterprises "in the steel industry to speed up the exit, merger and reorganization, layout adjustment, further optimize the asset structure and debt structure, and promote deleveraging

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