Four issues steel transaction should pay attention to

 

From the aspect of overall and strategy of Chinese steel transaction , we should pay attention to the following four issues concerning steel transaction development: one is changing developing method, second is the impact of importing ores with high price, third is strengthen steel products distribution, fourthly, working harder on energy saving and emission reduction. Presently Deputy Secretary of iron and steel industry association, Mr. Luo Bing gave his opinions at a summit forum. 
Luo Bing pointed that, from the operation aspect between January to July, the out put of steels in domestic is still in increasing, and the situation of supply excess demand will be continued. This year from January to July, our crude steel yields about 410364000 tons, increased about 10.3% compared to that time of last year. Large and medium enterprises increase occupied 6.8%, and local middle-sized and small enterprises rises 32.6%. The average outcome of crude steel is 1935700 tons. At the same time, the amount of consumption increased about 10.5% compared to that time of last year in domestic crude steel market. Generally, the total supply of the resources is over the actual demand in domestic demand. The inventory in community and enterprises keeping a high level.     
Seen from the breed structure of steel products, this year from January to July, the LTW increase is 15.24%, and steel plate out put (include narrow steel strip) increased by 9.92%.
     from January to July, Chinese steel exporting figure is 28771600 tons, billet exporting is 4500 tons, adding crude steel outing 30602600 tons, all this increased by 1.17% compared to last time. Luo bingsheng stated that analysis from the tendency of last phase development, due to supply over demand in international steel market, steel products exporting will be harder and harder.
 
Among the 77 enterprises that have been counted into the statistic by iron and steel industry association, the actual purchasing price of crude funnel increased by a large scale. The actual sales cost rises by 25.45% among the enterprises. Realized profit increased by 20.6%. Though realized total profit uprising, but the profit of large and middle steel enterprise is only 3.08%, lowering 0.1 percentages compared to the same time. The whole industry still in the state of high cost, lower profit.
Luo Bingsheng stats that, China Iron and Steel Industry Association of The second enlarged meeting of the standing council raise that in the next half year the whole field will face four critical problems :Output slow down, acute structural imbalance, bigger financial pressures, higher production costs. This will need to raise the attention of the whole field, try to take action, positively solve those problems. And in the coming half years should also pay more attention of 4 key points in the field:
The first is to uphold to change to way of the steel industry development, to create a new situation of scientific development. From January to July of year, the situation of that the industry appears to run in "high-cost, low efficiency”, which is not good to accelerate the transformation of the mode of development for entire industry and to promote structural adjustment and optimization. We need to pay more attention, and that need deserves close attention.
     Especially our country's crude steel production capacity has reached 758 million tons, and in the general case of excess capacity, we need to adhere to organize production according to market demand, and strictly control the production total amount and production capacity incensement, and speed ​​up eliminating backward production capacity, and maintain the basic balance of supply and demand in the domestic market, In order to facilitate the healthy development of the industry's stability.
     The second is to focus on the shock and impact of steel industry affected by high prices for iron ore import. Viewing from supply and demand relationship of global shipping trade of iron ore ,the factors about supply has exceeded demand are accumulated, and will eventually push to down channel by an unreasonably high price. on one hand, the recovery of global economic is further slowing, the short of  social demand, coupled with supply has exceeded demand in global market, price in steel market is decreasing fully which limit the demand of iron ore import. On the other hand, in the beginning of this year, the iron ore supplier overestimated the demand in China, particularly the domestic iron ore production grows by 21.9% more than last year corresponding period during January to July. Currently, China's domestic iron ore production and port inventory are in high level which will limit the growth of iron ore import. LuoBinsheng points out, the main measures to solve problem of iron ore import, one is as to the highly monopoly position of international iron ore trade by ship, adhere to the "going out" strategy, further improve the rights and interests of the proportion of overseas mine by strengthen the investment development and sharing of overseas iron mines. Second is hoping to further strengthen domestic iron mine production and construction by policy support, achieving long-term stable production, increasing the self supply rate of mine production. Lastly, regular the order of imported iron ore market , further doing well the iron ore import agency system and the flow management of iron ore import .
The third is to strength the steels distribution work. With the view of steels sale, distributors sales accounted for 41.16% of total sales which is the best way of steels sale. Steel enterprise and distribution enterprise should work together to do well the steel distribution work,further strengthen the contact between steel enterprise and downstream steel industry: one is to carry out steel distributing processing, as service industry is what our country support and key develop; second it is saving energy consumption, and conform to the requirements to develop whole society of green economic and social environmental protection; Third is to improve the use value of steel through futher processing and distribution, satisfying the customer diversification demand, realize the reasonable economic benefits. This is the current important work. 
The fourth is to increase the effort for energy conservation and emissions reduction, promote the green development of iron and steel industry. One is to popularize the mature technology of energy conservation and emission reduction, the dry quenching rate in large and medium-sized enterprise have to reach 100% in 2015; Second is the success rate of energy consumption by coking, sintering, iron and steel making process should achieve 100% in national enterprise member in 2015; Third is the national enterprise member which doesn’t go through the environmental impact assessment of construction projects, have to make great efforts to perfect measures for examination and approval formalities, The industry must improve and strengthen the energy conservation and emission reduction index system, strengthen to track the enterprise of saving energy and environmental protection, focus on the promotion of energy saving and environmental protection technology equipment; Developing green steel manufacturing, circular economy and low carbon process technology, cleaning process and other major issues and new technology research, strengthen the regulation of energy conservation and environmental protection data, further study ,popularize the advanced experience of tanggang and taiyuan iron which are friendly construction and environment enterprise.
From the aspect of overall and strategy of Chinese steel transaction , we should pay attention to the following four issues concerning steel transaction development: one is changing developing method, second is the impact of importing ores with high price, third is strengthen steel products distribution, fourthly, working harder on energy saving and emission reduction. Presently Deputy Secretary of iron and steel industry association, Mr. Luo Bing gave his opinions at a summit forum. 
Luo Bing pointed that, from the operation aspect between January to July, the out put of steels in domestic is still in increasing, and the situation of supply excess demand will be continued. This year from January to July, our crude steel yields about 410364000 tons, increased about 10.3% compared to that time of last year. Large and medium enterprises increase occupied 6.8%, and local middle-sized and small enterprises rises 32.6%. The average outcome of crude steel is 1935700 tons. At the same time, the amount of consumption increased about 10.5% compared to that time of last year in domestic crude steel market. Generally, the total supply of the resources is over the actual demand in domestic demand. The inventory in community and enterprises keeping a high level.     
Seen from the breed structure of steel products, this year from January to July, the LTW increase is 15.24%, and steel plate out put (include narrow steel strip) increased by 9.92%.
     from January to July, Chinese steel exporting figure is 28771600 tons, billet exporting is 4500 tons, adding crude steel outing 30602600 tons, all this increased by 1.17% compared to last time. Luo bingsheng stated that analysis from the tendency of last phase development, due to supply over demand in international steel market, steel products exporting will be harder and harder.
 
Among the 77 enterprises that have been counted into the statistic by iron and steel industry association, the actual purchasing price of crude funnel increased by a large scale. The actual sales cost rises by 25.45% among the enterprises. Realized profit increased by 20.6%. Though realized total profit uprising, but the profit of large and middle steel enterprise is only 3.08%, lowering 0.1 percentages compared to the same time. The whole industry still in the state of high cost, lower profit.
Luo Bingsheng stats that, China Iron and Steel Industry Association of The second enlarged meeting of the standing council raise that in the next half year the whole field will face four critical problems :Output slow down, acute structural imbalance, bigger financial pressures, higher production costs. This will need to raise the attention of the whole field, try to take action, positively solve those problems. And in the coming half years should also pay more attention of 4 key points in the field:
The first is to uphold to change to way of the steel industry development, to create a new situation of scientific development. From January to July of year, the situation of that the industry appears to run in "high-cost, low efficiency”, which is not good to accelerate the transformation of the mode of development for entire industry and to promote structural adjustment and optimization. We need to pay more attention, and that need deserves close attention.
     Especially our country's crude steel production capacity has reached 758 million tons, and in the general case of excess capacity, we need to adhere to organize production according to market demand, and strictly control the production total amount and production capacity incensement, and speed ​​up eliminating backward production capacity, and maintain the basic balance of supply and demand in the domestic market, In order to facilitate the healthy development of the industry's stability.
     The second is to focus on the shock and impact of steel industry affected by high prices for iron ore import. Viewing from supply and demand relationship of global shipping trade of iron ore ,the factors about supply has exceeded demand are accumulated, and will eventually push to down channel by an unreasonably high price. on one hand, the recovery of global economic is further slowing, the short of  social demand, coupled with supply has exceeded demand in global market, price in steel market is decreasing fully which limit the demand of iron ore import. On the other hand, in the beginning of this year, the iron ore supplier overestimated the demand in China, particularly the domestic iron ore production grows by 21.9% more than last year corresponding period during January to July. Currently, China's domestic iron ore production and port inventory are in high level which will limit the growth of iron ore import. LuoBinsheng points out, the main measures to solve problem of iron ore import, one is as to the highly monopoly position of international iron ore trade by ship, adhere to the "going out" strategy, further improve the rights and interests of the proportion of overseas mine by strengthen the investment development and sharing of overseas iron mines. Second is hoping to further strengthen domestic iron mine production and construction by policy support, achieving long-term stable production, increasing the self supply rate of mine production. Lastly, regular the order of imported iron ore market , further doing well the iron ore import agency system and the flow management of iron ore import .
The third is to strength the steels distribution work. With the view of steels sale, distributors sales accounted for 41.16% of total sales which is the best way of steels sale. Steel enterprise and distribution enterprise should work together to do well the steel distribution work,further strengthen the contact between steel enterprise and downstream steel industry: one is to carry out steel distributing processing, as service industry is what our country support and key develop; second it is saving energy consumption, and conform to the requirements to develop whole society of green economic and social environmental protection; Third is to improve the use value of steel through futher processing and distribution, satisfying the customer diversification demand, realize the reasonable economic benefits. This is the current important work. 
The fourth is to increase the effort for energy conservation and emissions reduction, promote the green development of iron and steel industry. One is to popularize the mature technology of energy conservation and emission reduction, the dry quenching rate in large and medium-sized enterprise have to reach 100% in 2015; Second is the success rate of energy consumption by coking, sintering, iron and steel making process should achieve 100% in national enterprise member in 2015; Third is the national enterprise member which doesn’t go through the environmental impact assessment of construction projects, have to make great efforts to perfect measures for examination and approval formalities, The industry must improve and strengthen the energy conservation and emission reduction index system, strengthen to track the enterprise of saving energy and environmental protection, focus on the promotion of energy saving and environmental protection technology equipment; Developing green steel manufacturing, circular economy and low carbon process technology, cleaning process and other major issues and new technology research, strengthen the regulation of energy conservation and environmental protection data, further study ,popularize the advanced experience of tanggang and taiyuan iron which are friendly construction and environment enterprise.

   


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