Crude steel refers to steel that has completed the whole process of smelting (including molten iron pretreatment, smelting, secondary metallurgy, i.e., refining outside the furnace, pouring or continuous casting, etc.) without plastic processing. It is a metal material with iron as the main element, a carbon content of less than 2%, and other elements.
Crude steel is made of iron-containing raw materials such as pig iron or scrap steel, which are purified by smelting equipment such as converters or electric arc furnaces, and the carbon content is reduced to the specified range, and the content of other elements is adjusted to the specified range to obtain molten steel that meets the chemical composition required by the final steel. Most of them are cast into billets with continuous casters, or steel ingot molds into ingots, and a small part is directly cast into steel castings. After plastic processing or other processing, crude steel is made into various shapes of steel, which are widely used in industry, agriculture, construction and other sectors of the national economy.
According to the chemical composition, crude steel is divided into three categories: non-alloy steel, low-alloy steel and alloy steel. Non-alloy steel is a steel that does not contain deliberately added alloying elements, and only contains trace amounts of carbon, silicon, manganese and other elements; Low-alloy steel is a steel that contains a smaller amount of alloying elements on the basis of carbon steel; In order to achieve a certain performance, alloy steel is purposefully and appropriately added with one or more alloying elements, which is used to improve the strength, toughness and hardenability of steel.
The upstream raw material links mainly include iron ore, scrap steel, raw coal, coke, etc., and the midstream crude steel production link is the core of the industrial chain, mainly involving the smelting and rolling of crude steel. The downstream is the steel processing link, and the products are widely used in various fields such as construction, machinery, automobiles, ships, home appliances, energy and power, rail transit, etc.
As a pillar industry of national development, the steel industry has developed rapidly in recent years, and the global crude steel industry has also grown steadily in the context of the rapid development of the steel industry. In 2022, affected by the epidemic and the decline in China's crude steel production, global crude steel production will decline slightly.
As an important part of the iron and steel industry, crude steel is one of the pillar industries of China's economic development, with the rapid development of China's iron and steel industry since the founding of the People's Republic of China, the crude steel industry has also continued to develop, and the output of the industry has grown rapidly. In recent years, under the influence of factors such as the "double limit" of production capacity and output, the "double control" of energy consumption and the violent fluctuations of the market, the output and consumption of crude steel have declined under the influence of factors such as the "double limit" of production capacity and output of the steel industry, as well as the sharp fluctuations in the market. At the same time, as the world's largest crude steel producer, China's domestic crude steel is exported to foreign markets in large quantities while meeting the domestic market demand, and China's net exports are also growing with the rapid development of the crude steel industry.
As an important part of the iron and steel industry, crude steel is one of the pillar industries of China's economic development, with the rapid development of China's iron and steel industry since the founding of the People's Republic of China, the crude steel industry has also continued to develop, and the output of the industry has grown rapidly. In recent years, under the influence of factors such as the "double limit" of production capacity and output, the "double control" of energy consumption and the violent fluctuations of the market, the output and consumption of crude steel have declined under the influence of factors such as the "double limit" of production capacity and output of the steel industry, as well as the sharp fluctuations in the market. At the same time, as the world's largest crude steel producer, China's domestic crude steel is exported to foreign markets in large quantities while meeting the domestic market demand, and China's net exports are also growing with the rapid development of the crude steel industry.
According to the data of Yanjing Bizhi Market Research Network, China's crude steel output in 2022 will be 101.8 billion tons, down 1.8 billion year-on-year6%, Yanjing Bizhi analyst**, production will drop to 10 in 20230.1 billion tons, which will reach 98.9 billion tons.
Steel consumption in January and July 2023 generally weakened, and according to the statistics of Beijing Yanjing Bizhi, the apparent consumption of crude steel in January and July 2023 decreased slightly by 05%。Specifically, although steel consumption in March exceeded 120 million tons, a year-on-year increase of 2238%, the year-on-year growth rate rebounded in July due to the low base last year, but the consumption growth rate has fallen again since April, the year-on-year growth rate turned negative in May, and the month-on-month consumption in July also declined.
Infrastructure investment and vehicle manufacturing will become the main support for steel demand, which is expected to be flat or slightly lower year-on-year. In terms of infrastructure investment, the issuance of local ** special bonds will accelerate in August 2023. In terms of vehicle manufacturing, the sales of new energy vehicles continue to grow rapidly, and it is expected to maintain growth in the future driven by policies and measures such as promoting consumption and subsidies for new energy vehicles, driving the growth of vehicle production. Overall, although the growth of infrastructure investment and vehicle manufacturing will form a certain support for steel demand, but the demand is difficult to exceed the same period last year, real estate and machinery demand will still decline year-on-year, and it is expected that the annual steel demand will maintain the level of last year or decline slightly, and the recovery of steel demand during the year will still face certain pressure, and the annual steel demand will be flat or slightly lower year-on-year.
With the rapid development of China's crude steel industry in recent years and the continuous growth of downstream demand, the market scale of China's crude steel industry has expanded rapidly. According to the data of Yanjing Bizhi Market Research Network, the market size of China's crude steel industry in 2022 will be 35080700 million yuan, a year-on-year decrease of 143%。Among them, the construction and machinery industry is the most important application market of the crude steel industry, accounting for a total of 674%。Among them, the construction market accounted for 512%, and the machinery market accounted for 163%。
The construction and machinery industry is the most important application market for the crude steel industry, accounting for 51 percent in 20222%, and the mechanical field accounted for 163%。
Analysts believe that the market concentration of China's crude steel industry is low, and the total market share of the top five companies in 2022 will not exceed 30%, of which China Baowu Iron and Steel Group ranks first with a market share of 1184%。followed by Anshan Iron and Steel Group, Shagang Group, Hegang Group, and Jianlong Group.
At the same time, the competition in China's crude steel market shows the following characteristics: 1. Overcapacity, China is the world's largest crude steel producer, but at the same time, crude steel production capacity is also seriously overcapacity. This has led to fierce competition in the market and suppressed corporate profitability; 2. Low concentration. There are many crude steel enterprises but the production capacity is scattered, and the crude steel output of the top ten iron and steel enterprises accounts for about 60% of the country's total output, which is still a certain gap compared with the international advanced level; 3. The technical level needs to be improved: the technical level of China's crude steel production enterprises is uneven; 4. High pressure on environmental protection.
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