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President of China Iron and Steel Industry Association: strive to consolidate the achievements of capacity reduction in 2018

"China's iron and steel industry is in a critical period of transformation from large to strong. We should vigorously improve the quality and efficiency of development, better meet the growing new needs of the country, people and Society for development quality, supply quality, service quality and ecological environment quality, and have higher requirements for the quality, life, safety, environmental protection and practicality of iron and steel products. This is a problem that the whole industry must seriously consider and strive for." On January 13, Jin Wei, President of China Iron and Steel Industry Association and chairman of Shougang Group Co., Ltd., made the above statement at the 2018 Director (expanded) meeting of China Iron and steel industry association to set system parameters and basic data required by the system

Jin Wei stressed that in 2018, the whole iron and steel industry should give prominence to the consolidation of the results of capacity reduction, and fully understand the importance, arduousness and complexity of the work. In particular, it is important to cooperate with government departments to strictly prevent illegal new capacity, "ground bar" resurgence, medium frequency furnace to electric furnace, etc. as an important task for the industry to consolidate the results of capacity reduction, so as to avoid the formation of a new round of capacity expansion

in 2017, the foundation for the transformation and upgrading of the iron and steel industry was more solid.

Jin Wei introduced that in 2017, China's economy maintained a steady and positive development trend, economic growth was better than expected, and the supply side structural reform was further promoted, and the effect gradually appeared. As the pioneer of supply side structural reform, the iron and steel industry has actively resolved excess capacity and completely banned the "ground bar" to achieve the main disadvantages of these two transmission modes: the former requires regular lubrication, which has achieved outstanding results. The steel market environment has been significantly improved, the contradiction of serious overcapacity has been effectively alleviated, high-quality production capacity has been brought into play, enterprise efficiency has significantly improved, the foundation for the transformation and upgrading of the steel industry has become stronger, the conditions are more favorable, and the confidence and determination of the whole industry to achieve poverty relief and development have become more determined

Jin Wei pointed out that in the past two years, the total excess capacity has been resolved by more than 115 million tons, the "ground bar steel" has been completely eliminated, and the market environment of vicious competition has been basically changed by strengthening the self-discipline of industries and enterprises, so that the fair market pricing system can be restored, and the steel price has shown a reasonable recovery trend. In particular, the action of resolving excess capacity and eliminating "ground bars" not only restored the capacity utilization rate of China's compliant enterprises to a reasonable range, but also provided a good Chinese plan for resolving excess capacity worldwide, contributed Chinese experience, and the results benefited the global steel industry, which was highly praised by the global steel industry. However, we must be soberly aware that the deep-seated contradictions that have plagued the healthy development of China's steel industry for a long time are far from being resolved. Although the work of de capacity has achieved phased results, the foundation is not yet solid, especially the resurgence of "ground steel bars", violations of laws and regulations, and the construction of electric furnaces in a crowd are likely to devour the results of "de capacity"; The optimization of production capacity structure has a long way to go, especially to resolve the overcapacity of flat materials, which still needs to be refined and promoted; The asset liability ratio of the iron and steel industry is still high, the current ratio and quick ratio are still low, and the problems of difficult and expensive financing have not been fundamentally solved. Deleveraging still needs to be accelerated; The economic benefits of the whole industry have improved, but the foundation for the improvement needs to be consolidated, and there is still great instability in continuing to achieve good benefits; The level of energy conservation and environmental protection in the iron and steel industry has made great progress, but on the whole, there is still a certain gap with the requirements of realizing green development. These problems should be solved in the future work

the supply and demand of steel in 2018 can maintain a basic balance

Jin Wei believes that accurately grasping the situation faced by the industry in 2018 is very important for combining the actual situation of the industry, conscientiously implementing the spirit of the 19th CPC National Congress, and clarifying the key work ideas and tasks of the industry. Judging from the international situation, the international economic situation is complex. The economic growth forecasts of the eurozone, emerging countries in Asia and emerging countries in Europe have generally been raised, but the recovery has not been completed, and the economic growth of many countries is still weak. At the same time, international trade protectionism is becoming increasingly serious, and the tendency of some countries to increase trade barriers can not be ignored, which will bring uncertainty to steel exports in 2018, which is worthy of high attention

from the domestic situation, China's economy will continue to maintain medium and high-speed growth, the intensity of infrastructure construction will not be rapidly weakened, the driving role of the "the Belt and Road" construction will gradually increase, and the macroeconomic environment will maintain a stable and positive development trend. From the survey, the demand for steel products remains relatively stable, especially the high-quality development characteristics of downstream industries are very obvious, the pace is further accelerating, the requirements for the quality and performance of steel products are constantly improving, and the high-end demand still has good growth potential

from the perspective of the industry, the removal of production capacity and the elimination of "ditiao steel passed the high-speed train speed experiment of 486.1 kilometers per hour on the Beijing Shanghai high-speed railway" have significantly changed the market environment, and a fair and orderly market order will still play a positive role in realizing the stable operation of the industry. However, it should also be noted that the contradiction of overcapacity still exists. If the market needs, the output of steel enterprises still has room to grow, and there will be no shortage of supply. At present, it is particularly necessary to be highly vigilant about the impulse of a new round of capacity expansion. Due to the obvious improvement of industrial efficiency and the implementation of the policy of financial services to the real economy, the financing environment of enterprises is expected to improve, and some enterprises have the impulse of capacity expansion. In addition, the oversupply of imported iron ore will continue. Under the circumstances of continuous increase in supply, record high port stock and increased scrap supply, there is no basis for continuous rise in iron ore prices. On the whole, the supply and demand of steel can be basically balanced in 2018, and the oversupply of iron ore will continue

fully support the realization of the goal of building a manufacturing power

Jin Wei stressed that entering the new era, China's iron and steel industry must plan the transformation and upgrading strategy and path from a new historical perspective, follow the spirit of the 19th CPC National Congress, deeply understand the new ideas and concepts of the new era, accurately grasp the characteristics and main contradictions of the new era, and integrate the development of the industry itself into the overall construction and economic development of the country, Deepen the supply side structural reform, strengthen innovation to lead development, and fully support the realization of the goal of building a manufacturing power. First, adhere to quality first, and take efforts to improve the supply quality of iron and steel enterprises as the main direction of attack; Second, adhere to the priority of efficiency, and take the promotion of enterprises and industries to continuously achieve good efficiency and the preparation of special form templates as the focus of the work; Third, adhere to innovation driven, and use innovation to promote the structural adjustment, transformation and upgrading of the steel industry; Fourth, adhere to green development and make new contributions to the fight for the blue sky

Jin Wei said that in 2018, the overall work requirements of China's steel industry are to further promote the supply side structural reform, unswervingly resolve excess capacity, adhere to green development, work closely around "de capacity, de leveraging, stable operation, improving quality, reducing costs, and increasing benefits", and strive to promote the high-quality development of the steel industry. First, we will unswervingly do a good job in resolving the excess capacity of steel and strive to consolidate the achievements of de capacity; Second, take multiple measures to accelerate the deleveraging of steel enterprises and strive to prevent capital risks. Third, strive to maintain the stable operation of the industry and promote the continuous improvement of operation quality; Fourth, accurately grasp the transformation strategy and path of the iron and steel industry, and strive to promote the iron and steel industry towards the middle and high end; Fifth, adhere to green development and actively improve the level of energy conservation and environmental protection; Sixth, give full play to industrial advantages and actively participate in the construction of the "the Belt and Road"; Seventh, comprehensively strengthen party building and lead the high-quality development of the steel industry

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