Abstract As a major steel province, the steel industry in Hebei Province has recently experienced the harsh situation of “June Snowâ€. To a certain extent, this is also the epitome of the current national steel industry. It used to be a high contribution rate industry of GDP. Now, the steel industry will face a trend of falling profits, and...
As a major steel province, the steel industry in Hebei Province has recently experienced the harsh situation of “June Snowâ€. To a certain extent, this is also the epitome of the current national steel industry. Once a high contribution rate industry of GDP, today, the steel industry will face a trend of falling profits, and is entering a period of deep adjustment. 
Since the beginning of this year, in addition to the embarrassing situation that steel prices and iron ore “scissors difference†have lowered profits, overcapacity and insufficient demand, the steel industry will face an “environmental swordâ€. Recently, the reporter was informed that the air pollution prevention and control action plan is about to land, one of which is to strictly control the new capacity of high-energy-consumption and high-pollution industries, and complete the “12th Five-Year Plan†backward production capacity elimination of key industries such as steel one year ahead of schedule. This means that the steel industry will face multiple unfavorable factors, and the expectation of lower short-term benefits is increasing.
According to data from the China Iron and Steel Association, in the first five months of this year, the net profit of steel companies was only 2.842 billion yuan, and the loss was as high as 43.02%, an increase of 8.14 percentage points over the same period of last year.
From the perspective of steel consumption, the increase in apparent consumption of crude steel in China this year is the lowest since entering the new century (9.06, 0.00, 0.00%). In the first 10 months of this year, the apparent consumption of crude steel increased by only 1% year-on-year. It is estimated that the apparent consumption of crude steel for the whole year is 679 million tons, an increase of about 1.8%. Steel prices have also fallen sharply. The overall domestic steel prices in the first 10 months of this year have fallen to near 1994 levels, with plate prices in August falling below 1994 levels. The “scissors difference†between the price of steel and the price of raw fuel such as iron ore has eroded the profits of steel companies.
"The overall operation characteristics of China's steel industry this year is 'two highs and two lows', that is, high cost, high production capacity, low growth, low efficiency." Zhang Changfu, vice president and secretary general of China Iron and Steel Association, recently made a report on the operation of the steel industry this year. The above judgment.
According to the latest statistics, in June this year, Hebei Province's steel industry PMI was 43.4%, down 3.1 percentage points from the previous month, and was below the glory line for five consecutive months, indicating that Hebei's steel industry is still in a downturn, the whole industry appears "June The harsh situation of "Flying Snow". From the various sub-indices, the new order index was 40%, down 4 percentage points from the previous month, indicating that market demand is weak, and there is still no sign of improvement. The new export order index was 40.9%, an increase of 3.4 percentage points from the previous month. It has been shrinking for four consecutive months, and external demand remains sluggish.
Wang Guoqing, director of the Lange Steel Information Research Center, said in an interview yesterday: "At the policy level, in the second half of the year, the urbanization meeting at the national level will be held soon, and in July, the policy will be phased out, so the steel in the second half will be The industry demand market can be said to be 'cautiously optimistic'."
Wang Dayong, secretary general of the Hebei Metallurgical Industry Association, believes that the current objective situation has formed a strong atmosphere for the urgency of structural adjustment of the steel industry. First, the macroeconomic level is tightening, credit funds are gradually tightening; second, the market is sluggish, and the profitability of the whole industry is not optimistic; third, the tightness of the steel industry's capital chain will become normal; fourth, various environmental regulations will be strengthened and will be improved. The environmental management cost of steel enterprises; and the completion of the elimination of backward production capacity one year ahead of schedule, etc., will accelerate the structural adjustment of the steel industry.
"For the steel industry, especially those above the scale should upgrade their products to meet market demand and avoid the homogenization competition of previous products." Wang Guoqing suggested that steel companies above designated size should increase research and development efforts, such as the development of environmental protection equipment. Anti-corrosion steel products.
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