Steel price is expected to be stable
 
Steel price is expected to be stable, and it is more difficult for steel enterprises to improve benefits
 
Xinhua Finance and economics, Beijing, October 26 (Xinhua) China Iron and Steel Industry Association said at the information conference of the third quarter of 2020 on the 26th, the market expectation is cautious and optimistic, and the steel price is expected to be stable. However, the pressure of enterprise cost is rising, and it is more difficult to improve efficiency. It is expected that the profits of key steel enterprises in the whole year will decrease slightly or remain flat on a year-on-year basis.
 
CISA specifically said that from the investigation and discussion of member units, in the fourth quarter, the orders of enterprises were relatively full, and most of them were cautious and optimistic about the market trend. From the cost point of view, it is difficult for steel prices to drop significantly. From the perspective of supply, steel prices are also difficult to rise significantly. The steel price will be relatively stable and will continue to show a small wave dynamic potential. However, the association also pointed out that at present, the prices of iron ore, coal, coke and scrap steel are at a high level and are on the rise, and enterprises are facing the pressure of rising costs. It is difficult for iron and steel enterprises to improve efficiency when steel prices are difficult to rise substantially. It is estimated that the profit of iron and steel enterprises is expected to reach about 180 billion yuan in the whole year, with a slight decrease or flat year-on-year.


In the next step, CISA said that in the face of the new development pattern promoted by the state, which takes the domestic big cycle as the main body and the domestic and international dual circulation promote each other, the iron and steel industry, on the basis of adhering to the supply side structural reform, should seize the strategic basis point of expanding domestic demand, base on advantages and seize opportunities, better lay out high-quality development, and become a smooth national economic cycle and build new structures The backbone of the development pattern. Specifically, we should focus on the following aspects:
 
First, strengthen industry self-discipline and effectively control the release of production capacity. Maintaining the balance of supply and demand in the domestic market is the key to the smooth operation of the iron and steel industry. Iron and steel enterprises should seize the opportunity of China's economic recovery, actively adapt to market changes, reasonably push the production rhythm, optimize the product structure, fully meet the new demand generated by the new development pattern of domestic and international dual cycle mutual promotion, improve the adaptability of the supply system to domestic demand, and form a higher water of demand pulling supply and supply creating demand Dynamic equilibrium.
 
Second, we should carry out benchmarking and tapping potential, and vigorously reduce costs and increase efficiency. Through strengthening management and system optimization, we should dig deep into the internal potential of the enterprise, improve the product quality, increase the added value of the product, and effectively digest the adverse factors such as the rising cost, so as to improve the economic efficiency and overall operation efficiency of the enterprise. It is necessary to strengthen capital management, improve the efficiency of fund utilization, adhere to the business principle of "no money, no delivery", prevent capital risks and further control the debt level of enterprises.
 
Third, promote the transformation of ultra-low emissions and strive to achieve low-carbon development. Efforts should be made to complete the transformation of ultra-low emissions, strengthen the operation and management of environmental protection facilities, achieve stable emission standards, and make efforts to win the "blue sky defense war".
 
Fourth, accelerate merger and reorganization and optimize industrial layout. Through the merger and reorganization of enterprises, we should build an innovative pattern of division of labor and cooperation, effective competition and common development, improve the ability to cope with market crisis in a coordinated manner, create advantageous enterprise groups at different levels, cultivate leading enterprises with global influence, regional appeal and professional influence, and promote cooperation and progress in production capacity, technology, energy conservation and environmental protection, and management.
 
Fifth, focus on fundamental tasks and promote high-quality and sustainable development of the industry. We will continue to focus on the fundamental task of comprehensively improving the industrial base and industrial chain level, adhere to the two development themes of green development and intelligent manufacturing, focus on solving the three major pain points of controlling the expansion of production capacity, promoting industrial concentration, and ensuring resource security. We will continue to promote the process of internationalization, strive to promote relevant work, promote quality change, efficiency change and power change, so as to achieve higher quality and more effective We should develop in a more equitable, sustainable and secure way.