Day after day, year after year. The ferry of time travels through more than 300 days, crosses the north and south of the river, and returns to the end of the year, which will start a new reincarnation. The ebb and flow of China this year is full of emotion. This year's steel market was not shocked, which made people feel helpless.
Photo by Xi Xuefeng of China Steel Network Brand Center.
Bidding farewell to the haze of the epidemic for three years, in the economic boost and consumption recovery, China's steel industry stands at the historical node of the alternation of the old and new cycles. This year, the downstream demand recovery of the steel industry is less than expected, the steel price is low but the cost side remains high, the profit margin of the steel industry has been squeezed, and the depth of adjustment, industry losses, sluggish demand, overcapacity, and reshuffle have accelerated ......and other keywords have become the annotation of this year's steel market.
Overcapacity has intensified, domestic demand is insufficient, exports have increased sharply, raw materials have been firm, the average price of finished products has fallen, and industry profits are meager. Industry insiders use such a sentence to describe the ups and downs of the steel industry in 2023.
Photo by Xi Xuefeng of China Steel Network Brand Center.
This year, the "game of strong expectations and weak reality" is the main contradiction that dominates the steel market. With the confusion of crude steel flat control policy, both ends of the steel market supply and demand are caught in the game of expectations and reality, it is under this contradiction that the domestic steel industry is facing the lack of recovery of traditional market demand, the high level of raw fuel, the decline in industry profitability and other problems.
Looking back is to move forward better. Sinosteel ** Don't launch the "Top Ten Steel News Events in 2023". Standing at the end of 2023, we look back;Ushering in a new starting point in 2024, we look forward. Opportunities and challenges remain. Let's move forward hand in hand to promote the magnificent development of the steel industry. Let's take a look back.
It is strictly forbidden to add new steel production capacity
On December 7, ** issued the "Action Plan for Continuous Improvement of Air Quality", which mentioned that it is strictly forbidden to add new steel production capacity. Implement the integrated layout of steel, coking and sintering, greatly reduce independent coking, sintering, pelletizing and hot rolling enterprises and processes, and eliminate backward coal washing capacityOrderly guide the transformation of blast furnace-converter long-process steelmaking to electric furnace short-process steelmaking. By 2025, short-process steelmaking will account for 15% of production. Beijing-Tianjin-Hebei and surrounding areas continue to implement "steel-based coking", and the ratio of coking capacity to long-process steelmaking capacity is controlled at 04 or so.
Steel exports have increased significantly
Affected by rising costs and weakening demand, the current operating efficiency of domestic iron and steel enterprises is still in a sluggish state, which further promotes the adjustment of the industry. In the first three quarters, the rise in domestic manufacturing steel demand and the growth of steel exports have become the main driving force for the growth of steel output, and the contraction of steel demand in the construction industry has become the main factor for the decrease in consumption. Exports are a bright spot in the growth of the steel market this year. According to the data of the General Administration of Customs, from January to November 2023, China has exported a total of 8,265 steel products80,000 tons, a year-on-year increase of 356%, a new high for the same period since 2017;A total of 698 steel products have been imported00,000 tons, down 29 percent year-on-year2%。Iron and steel exports have played a "key minority" role in the balance of supply and demand in the domestic market, among which automobiles, ships, household appliances and other products with a large amount of steel have a strong export drive, and the direct and indirect exports of steel products to maintain growth are conducive to the balance of supply and demand in the domestic market.
The mergers and acquisitions of the steel industry have been accelerated and upgraded
Since the beginning of this year, in the face of the sharp reduction in market demand and profits in the steel industry, the integration of industrial chain resources and mergers and acquisitions have accelerated. On May 18, Anshan Iron and Steel Group signed an agreement with Chaoyang People's State-owned Assets Supervision and Administration Commission to acquire 49% of the shares of Lingyuan Iron and Steel Group Co., Ltd. On November 7, Jianlong Group announced that the Intermediate People's Court of Xining City, Qinghai Province ruled to approve the draft reorganization plan of Xining Special Steel Co., Ltd. submitted by the administrator, as well as the draft reorganization plan of Xining Special Steel Group Co., Ltd. and other companies associated with it. On December 5, Nanjing Iron and Steel Co., Ltd. announced that Nanjing Iron and Steel Group indirectly held 5910% stake. The indirect controlling shareholder of the company was changed from Fosun Hi-Tech to Nanjing Iron and Steel Group, and the actual controller of the company was changed from Guo Guangchang to CITIC Group. In addition, the steel industry in many places has begun to integrate and reorganize, and the steel industry is entering the era of giants.
The regulatory authorities have repeatedly taken action to "strike iron".
Since May 2023, the iron ore 2401** contract** has continued to rise, starting at 650 yuan**. Especially in October, the traditional off-season of the steel industry, iron ore soared from 820 yuan tons to 990 yuan tons on November 14, reaching a high point in the past two years. The fluctuation of iron ore ** has attracted great attention from relevant state departments. On November 15, the National Development and Reform Commission sent staff to the Dalian Commodity Exchange to jointly study and strengthen the supervision of the iron ore market. On November 23, the National Development and Reform Commission, the Price Supervision and Competition Bureau of the State Administration for Market Regulation and the China Securities Regulatory Commission organized a meeting of some iron ore enterprises and companies to strengthen the linkage supervision of iron ore futures and spots. On November 24, the National Development and Reform Commission, together with the Water Transport Bureau of the Ministry of Transport and the Price Supervision and Competition Bureau of the State Administration of Market Supervision, organized a meeting of major port enterprises. On November 27, the National Development and Reform Commission conducted a survey on the steel, iron ore, lithium, palm oil and other commodity indices compiled and released by a number of institutions, to understand the relevant index compilation plan, data collection, calculation and release system, etc., and to study and promote the healthy and orderly development of the ** index market.
In 2023, the "Blue Book" of the steel industry will be released
In order to continue to track the progress and effectiveness of social responsibility in the steel industry, on November 17, the "Blue Book of Social Responsibility in the Iron and Steel Industry (2023)" was released in Beijing, including a total of 10 social responsibility reports from China Baowu, Anshan Iron and Steel Group, Shougang Group, Hegang Group, Valin Iron and Steel, a subsidiary of Hunan Iron and Steel, Shandong Iron and Steel Group, Baotou Iron and Steel Group, Minmetals Development, a subsidiary of China Minmetals, Jinzi Tianzheng, a subsidiary of China Iron and Steel Research Institute, and Beijing Jianlong Group, as well as China Baowu Green Carbon Report, Sinosteel Africa Report, There are 3 special reports in the Nanjing Iron and Steel Green Carbon Report. As of October 31, 2023, a total of 99 iron and steel enterprises (including one pellet enterprise) have completed ultra-low emission transformation and assessment and monitoring, of which 73 iron and steel enterprises have completed the whole process ultra-low emission transformation, involving about 36.2 billion tons;26 iron and steel enterprises have completed the announcement of ultra-low emission transformation of some processes, involving about 1 crude steel production capacity0.8 billion tons. In the next step, we will continue to accelerate the process of ultra-low emission transformation of the steel industry, and strive to complete the transformation of more than 80% of the steel production capacity by 2025.
The battle for the equity of 10 billion Nanjing Iron and Steel was settled
The twists and turns, once in court, Nanjing Nangang Iron and Steel United *** 60% equity transaction dispute reached a settlement. On the evening of October 13, Nanjing Iron and Steel Co., Ltd. and Fosun International announced that after the mediation presided over by the Jiangsu Provincial High Court, Shagang, Fosun, Nanjing Iron and Steel and other relevant parties signed the "Mediation Agreement", which was confirmed by the Jiangsu Provincial High Court. According to the Mediation Agreement, Shagang voluntarily withdrew from the transaction of 60% equity interest in Nanjing Ganglian, and Nanjing Iron and Steel Group paid compensation to Shagang. At the same time, Shagang and other relevant parties shall no longer file any lawsuit or arbitration with each other to claim rights and interests due to the equity transaction of Nanjing Ganglian. After laughing and hating, Fosun International and Nanjing Iron and Steel Co., Ltd. believe that "all parties will strive to achieve a win-win situation for all parties through friendly consultation".
The work plan for the steady growth of the steel industry was issued
On August 25, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Ecology and Environment, the Ministry of Commerce, the General Administration of Customs and other seven departments recently jointly issued the "Work Plan for the Steady Growth of the Iron and Steel Industry", proposing that from 2023 to 2024, the main goal of the steady growth of the steel industry is: In 2023, the supply and demand of the steel industry will maintain a dynamic balance, the investment in fixed assets of the whole industry will maintain stable growth, the economic benefits will be significantly improved, and the industry's R&D investment will strive to reach 15%, industrial added value increased by 3About 5%;In 2024, the industry development environment and industrial structure will be further optimized, the level of high-end, intelligent and green will continue to improve, and the industrial added value will increase by more than 4%.
The list of the world's top 500 Chinese steel enterprises was released
On August 3, the 2022 Fortune Global 500 list was announced. China Baowu Iron & Steel Group, a central iron and steel enterprise in China, entered the top 100 for the first time this year after entering the top 100 for the first time last year, ranking 44th with an operating income of 150,730 million US dollars, jumping 28 places from the previous year, and continuing to rank first among global steel companies. In terms of changes in rankings, the fastest rising position this year was Anshan Iron and Steel Group, another major steel state-owned enterprise in China, which jumped 183 places to 217th. In addition to China Baowu and Anshan Iron and Steel Group, the Chinese steel companies on the list also include Tsingshan Holding Group***238), Jiangsu Shagang Group***291), Shougang Group***328), Shandong Iron and Steel Group***332), Hangzhou Iron and Steel Group***336), Beijing Jianlong Heavy Industry Group***363), Jingye Group***386), Hunan Iron and Steel Group***421) and Shanghai Delong Iron and Steel Group***469).
After the implementation of the "cornerstone plan", more than 10 iron ore projects were started
In order to alleviate the current situation of China's high dependence on foreign iron ore, in January 2022, the China Iron and Steel Association reported the "cornerstone plan" to the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Natural Resources, and the Ministry of Ecology and Environment. Specifically, the "cornerstone plan" proposes to use 2-3 "five-year plans" to change the composition of China's iron resources and fundamentally solve the problem of resource shortcomings in the steel industry chain. By 2025, we will strive to achieve 3700 million tons, 300 million tons and 2200 million tons, an increase of 100 million tons and 0700 million tons and 100 million tons. At present, more than 10 key iron ore projects in China have been started, and the new iron concentrate capacity is about 50 million tons.
Henan Province cultivates a 20 million ton large-scale iron and steel group
In mid-March, the General Office of Henan Province issued the "Implementation Plan for Accelerating the High-quality Development of the Iron and Steel Industry in Henan Province (2023-2025)", striving to complete the structural restructuring and systematic reshaping of the province's iron and steel industry through three years of efforts, and basically form a high-quality development pattern with reasonable layout, advanced technology, prominent brand, intelligent integration, and green, low-carbon and sustainable development. Cultivate one 20 million ton large iron and steel enterprise group, and strive to enter the top ten of the national iron and steel enterprise comprehensive rankingIn the fields of recycled stainless steel, high-quality special steel, seamless steel pipes, medium and heavy plates, etc., one national pilot enterprise has been cultivated. In terms of industrial layout, we will create a "1+3+5" steel industry development pattern. "1" is to rely on Angang Group to establish Henan Iron and Steel Group, deepen the integration and reorganization of resources, focus on building a first-class large-scale iron and steel enterprise in China, and lead the improvement of the whole industrial chain of the iron and steel industry. "3" is to make the three key iron and steel industry bases of Anyang, Zhoukou and Xuchang better and stronger, and enhance the industrial concentration. "5" is to do fine and specialized Jiyuan, Pingdingshan, Xinyang, Nanyang, Shangqiu five characteristic iron and steel industry bases, to improve differentiated competitiveness.