Dear Leaders, Members of the Council, and Representatives,
Good morning! Welcome to the ever-changing and rapidly developing Xiongan to participate in the sixth and eighth Council (expansion) meeting of the Steel Association.
This meeting was held at a time when the Third Plenary Session of the 20th Central Committee of the Party has just concluded successfully. It is of great significance for us to deeply study and implement the spirit of the meeting, deeply grasp the key tasks of comprehensively deepening reform, effectively unify our thoughts and actions to the spirit of the plenary session, and constantly win advantages, win initiative, and win the future through reform and innovation.
Just now, the four leaders of the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, and the Ministry of Commerce made important speeches, putting forward clear requirements for the work tasks of the steel industry, and we must earnestly implement them.
Now, I report to the conference on the operation of the industry and the main work in the first half of the year, and put forward key tasks in the second half of the year. It is hoped that this meeting can further unify ideas and build consensus, promote the whole industry to work together to overcome difficulties, reform and innovation, and take the road of high-quality development.
The steel industry earnestly implements the decision-making and deployment of the Party Central Committee and The State Council, adheres to the general tone of seeking progress while maintaining stability, strives to overcome the market supply and demand imbalance, falling steel prices, high raw material prices, low economic benefits and other difficulties, the overall production and operation is stable, the transformation and upgrading continue to advance, the variety structure is constantly optimized, and effectively meets the higher demand for steel products in the downstream industry transformation and upgrading. We accelerated the cultivation of new quality productive forces and made steady progress in high-quality development.
First, the first half of the iron and steel industry operation characteristics
In the first half of the year, the characteristics of the steel industry entering the "stock optimization" stage are increasingly obvious. From the perspective of total steel production and consumption, steel production declined slightly, the strength of domestic demand weakened, the apparent consumption of crude steel fell more than the decline in production, the contradiction between supply and demand was prominent, steel prices continued to be low, superimposed raw material prices easy to rise hard to fall and other factors, and industry profits declined year-on-year. The operation of the industry presents a "three high and three low" situation of high output, high cost, high export, low demand, low price and low efficiency.
Iron and steel production decreased, the variety structure accelerated optimization. According to the data released by the National Bureau of Statistics, in the first half of the year, the national crude steel production of 531 million tons, down 1.1%; Pig iron output was 436 million tons, down 3.6% year-on-year; Steel production was 701 million tons, up 2.8% year on year. In the first half of the year, the country's equivalent crude steel apparent consumption of 479 million tons, down 3.3% year-on-year. Overall, steel supply is stronger than demand. At the same time, with the adjustment and optimization of the national industrial structure, the steel consumption structure has changed. Enterprises take the initiative to adapt to the market, follow the pace of transformation and upgrading of downstream industries, and accelerate the optimization of steel variety structure. In the first half of the year, the output of long materials decreased, including steel bars decreased by 11.7% and wire rods decreased by 2.8%. Plate production maintained growth, of which hot-rolled sheet increased by 64.4%, cold-rolled thin and wide steel strip increased by 17.4%.
Steel exports grew, and imports continued to fall. In the first half of the year, China's steel exports showed a trend of "volume increase and price decline", and imports continued to fall. According to the statistics of the General Administration of Customs, in the first half of the year, China exported 53.4 million tons of steel, an increase of 24.0%; The average export price was 778.8 USD/ton, down 26.9% year-on-year; 3.62 million tons of steel imports, down 3.3% year-on-year; The average import price was $1,651.1 / ton, down 3.9% year on year. In the first half of the year, the export prices of 22 major categories of steel varieties fell year-on-year, the export volume of only seamless steel pipes fell year-on-year, the other 21 categories increased year-on-year, and the proportion of high-end product exports declined. This year, the number of original trade remedy cases against China's steel exports has increased significantly, reaching 12 in the first half of the year, more than the number of the previous three years.
Steel prices are down, iron ore prices are up. According to the monitoring of the Steel Association, in the first half of the year, the average value of the CSPI China steel price index was 108.19 points, down 4.89% year-on-year. Among them, the average length index was 110.71 points, down 6.36%; The average sheet index was 106.76 points, down 6.35% year-on-year. During the same period, the average CRU international steel price index was 211.1 points, down 9.9% year-on-year, and the decline was greater than the domestic price decline. In terms of raw fuel, in the first half of the year, the country imported 611 million tons of iron ore, an increase of 6.2%; The average import price was $118.5 / ton, up 3.8% year-on-year. In the first half of the year, the procurement costs of domestic iron concentrate and imported fine ore of key enterprises increased by 8.36% and 4.06%, respectively, and the procurement costs of coking coal, metallurgical coke and scrap steel fell by 7.25%, 11% and 5.93%, respectively. In the case of falling steel prices, despite the decline in fuel procurement costs, iron ore procurement costs have risen significantly, and enterprises are still facing greater cost pressure.
Economic benefits are declining, and industry risks are generally controllable. In the first half of this year, the operating revenue of key enterprises was 3.09 trillion yuan, down 3.6% year-on-year. Operating costs were 2.93 trillion yuan, down 3.5% year-on-year; Total profit was 33.9 billion yuan, down 6.7 percent year-on-year; The average sales margin was 1.1%, down 0.03 percentage points year-on-year. From the monthly data, the summary profits of key enterprises remain profitable every month, and show an upward trend month by month, but the profit level is still at a low level. At the end of June, the asset-liability ratio of key enterprises was 62.79%, up 0.44 percentage points year-on-year; The appropriation of funds for inventories was 6500.9 billion yuan, down 1.2% year-on-year; Accounts receivable were 173.8 billion yuan, down 2.4 percent year on year. Inventory occupied funds and accounts receivable maintained a year-on-year decline, indicating that enterprises adhere to the "sales to determine production, efficiency to determine production, to determine sales" principle has achieved positive results. At present, the overall risk of the industry is still controllable.
Investment in energy conservation and environmental protection increased, and the level of greening continued to improve. In the first half of the year, key enterprises invested 7.0% in energy conservation, an increase of 0.9 percentage points year-on-year. As of June 30, 99 iron and steel enterprises completed the entire process of ultra-low emission transformation publicity, involving crude steel production capacity of about 459 million tons; 40 iron and steel enterprises completed some ultra-low emission transformation publicity, involving crude steel production capacity of about 142 million tons; There are also 35 companies with about 70 million tons of crude steel capacity under review. In the first half of the year, the total energy consumption of key enterprises fell by 1.8% year-on-year, the comprehensive energy consumption of tons of steel fell by 0.16% year-on-year, and the consumption of new water per ton of steel fell by 1.83% year-on-year. Total wastewater, chemical oxygen demand emissions, sulfur dioxide emissions, particulate matter emissions, and nitrogen oxide emissions decreased by 13.09%, 20%, 9.66%, 3.86%, and 7.5%, respectively. The utilization rates of iron-containing dust and mud and blast furnace gas increased by 0.15 and 0.44 percentage points, respectively. The improvement of energy and resource utilization indicators has led to the reduction of carbon emissions, lower costs, and improved competitiveness of enterprises, and the momentum of green development has been strengthened.
It should be emphasized that the market situation where supply is stronger than demand has not fundamentally changed. With the market expected to improve in the second quarter, some large enterprises, some areas of rebar, wire and other production and inventory increased significantly, some electric furnace steel enterprises "avoid the peak to rob the valley" flexible production, aggravated the regional market supply and demand contradiction, steel prices are still at a low level. Under the current market situation, iron and steel enterprises should abandon the business idea of mass production and "price war" when the market improves slightly, maintain strategic focus, adhere to self-discipline and production control, especially large enterprises should play a leading role, strengthen regional self-discipline, and jointly maintain market stability.
New progress has been made in the high-quality development of the steel industry
In the first half of the year, the steel industry fully, accurately and comprehensively implemented the new development concept, adhered to the problem-oriented, goal-oriented and results-oriented, centered on the "1231" industry development goals, and in accordance with the work deployment of the sixth meeting of the sixth Member Assembly of the Steel Association, concentrated industry strength and superior resources to forge ahead, overcome difficulties, and took multiple measures to stabilize production and operation. Multi-point layout cultivates new quality productivity, multi-party efforts promote high-end, intelligent and green transformation, and high-quality development continues to make new progress.
Explore new measures for the stable operation of the industry. In the face of the severe market situation in the first quarter, the Steel Association planned to carry out the "Spring Xiao action", issued the proposal of "Recognizing the situation and maintaining concentration to jointly maintain the stable and orderly development of the steel industry", organized the China Metallurgical News and other steel association system media to carry out special publicity, and proposed that enterprises self-discipline control production and inventory reduction; Held a seminar on the steel bar market, a symposium on the economic operation of some steel enterprises, and a symposium on steel exports, calling for adherence to the efficiency orientation and strengthening market self-discipline. The stable operation of the series has been positively responded by the majority of member enterprises, and the self-discipline control of production and inventory reduction has achieved the expected effect, and the industry benefits are better in the second quarter. In response to the new problems arising in the operation of the industry, the Steel Association has conducted in-depth investigations and studies, reflected the demands of the industry, submitted policy proposals to the relevant ministries and commissions to optimize the control of crude steel output, and advocated encouraging the preservation of pressure, supporting the elimination of inferior. We will carry out special studies on the evaluation of capacity replacement policies and new mechanisms for capacity governance, and explore new mechanisms for capacity governance that conform to market laws, guide industrial transformation and upgrading, and eliminate the fittest. At the same time, iron and steel enterprises continue to improve operational efficiency through management reform, tap potential for standardization, and strengthen collaboration. Baowu to carry out accounting operations, and strive to create the ultimate cost, ultimate efficiency and ultimate benefit; Shougang adheres to the principle of "one leads two integration" to improve efficiency and cultivate new momentum; Angang Chaoyang Steel creates an "extremely intensive" management and control model, and cultivates a cost transparent accounting culture with the help of digital means; Jianlong Group through the introduction of mature and advanced management system, to help Xining special steel successfully off the cap; Longteng special Steel insist on market segmentation, adhere to differentiated competition, sales profit margin to maintain the industry leader, set up a "small and beautiful" model.
New achievements were made in scientific and technological innovation. The "Green and clean steelmaking Technology and Application Based on carbon dioxide resource utilization" project completed by Professor Zhu Rong of University of Science and Technology Beijing nominated by the Steel Association won the second prize of 2023 National Science and Technology Progress Award, and the projects completed by Shagang, China Steel, WisCO, Bensteel, Shougang Jingtang, Nanjing Iron and Steel, Jiusteel, Taishan Iron and Steel, Northeastern University, etc., were listed. Yesterday by the award committee review and approval, the 2024 Metallurgical Science and Technology Award of 110 projects, of which Nanjing Iron and Steel led the completion of the "Nangang all-factor digital production and operation and intelligent manufacturing core key technology innovation" and other projects won the grand prize, University of Science and Technology Beijing led the completion of 21 projects such as "Key technologies and supporting equipment for efficient construction of 1500m deep shaft project of Binhai Metal Mine" won the first prize. The development of new products and new processes was accelerated, and Baowu's "2500m³ hydrogen-rich carbon circulating oxygen blast furnace Commercial Demonstration Project" was selected into the list of the first batch of "Green low-carbon Advanced Technology Demonstration Projects" in the country; Hesteel launched the world's first "hydrogen-based shaft furnace - near zero carbon emission electric arc furnace" new short process project; China Steel Research has built the world's first pure hydrogen shaft furnace demonstration line; Angang Bridge Steel and CITIC Pacific Special Steel wire rod to help build and open the Shenzhen-China Channel; Shougang self-adhesive coating very low iron loss electrical steel instead of imports; Hebei Longfengshan and Shanghai University developed the first domestic thermal preparation of 4N grade high purity iron industrialization project hot loading test, the purity of iron reached the highest purity level of 4N, zone melting iron reached 5N2. Shanghai Baoxin, MCC Jingcheng, Shagang and MCC Testing are respectively responsible for the secretariat of the iron and steel industry industrial software, clean production, two-roll casting and rolling ultra-thin strip, quality control and evaluation standardization working group, and organize the construction of standard systems and standard development in related fields, and the standardization leading role of leading enterprises is becoming more and more significant.
New breakthroughs were made in low-carbon and green development. Under the support and guidance of relevant ministries and commissions of the State, low-carbon work in the steel industry has been promoted in an orderly manner. The EPD Platform Blue Book for the Steel Industry (2024) was publicly released for the first time to provide a credible basis for decision-making on the green and low-carbon transformation of the industry. At present, the steel industry EPD (Environmental Product Declaration) platform has issued a total of 129 EPD reports, downloaded more than 30,000 times, and has been highly recognized by the steel ecosystem, scientific research institutes and international relevant institutions. Compile low-carbon emission steel standards and complete the consultation draft, and publish the new version of the Carbon Neutral Vision and Technology Roadmap for the Steel Industry. Promote the construction of the national steel low-carbon technology innovation center, and build a low-carbon common technology innovation platform. Develop and build a low-carbon steel service platform to help enterprises reduce carbon scientifically. At least 61 cutting-edge low-carbon technology research and development projects in the industry are being carried out simultaneously, and some have achieved phased results, and China's low-carbon steel technology is generally in the world's first phalanx. Actively promote the implementation of the ultimate energy efficiency project, 58 enterprises 440 million tons of capacity to participate in the cultivation, Shougang Jingtang, Zhanjiang Iron and Steel and other "double carbon best practice energy efficiency benchmarking demonstration factory" cultivation enterprises have carried out the review and acceptance, bringing a very considerable amount of energy saving and carbon reduction at the same time, promote the cost of enterprises to reduce efficiency.
Intelligent manufacturing has been promoted. The digital transformation of the steel industry is at the forefront of China's industrial field. Nangang passed the first national digital transformation standard Samsung enterprise evaluation and the steel industry's first batch of intelligent manufacturing maturity level 4 evaluation, won the national big data industry development demonstration; Xiangsteel Pangu grand model realizes intelligent monitoring and optimization of steel production process, and won the global Artificial Intelligence Excellent Innovation Award; National process manufacturing intelligent control technology Innovation center Steel low-carbon digital intelligent manufacturing branch center was unveiled in Baosteel; Hesteel TangSteel and Hesteel Digital were awarded the first three-star evaluation enterprises for digital transformation. The Three-year Action Plan for the Digital Transformation Project of the Steel Industry, the Construction Guide for the Digital Transformation Project of the Steel Industry, and the 2023 Digital Transformation Evaluation Report of the Steel Industry were released, and the digital transformation project of the steel industry was fully launched. Organize the digital transformation consulting service "expert tour" activity to conduct on-site diagnostic research on the digital transformation of enterprises. The application of industrial robots has become a general consensus in the steel industry, smart factories and intelligent centralized control centers are becoming a new trend, three-dimensional visualization simulation technology, big data models, and local AI applications are gradually expanding their application in steel enterprises, and the enterprises using industrial Internet technology to achieve intelligent production process control and intelligent enterprise operation management have reached 79.6% and 57.1% respectively.
New achievements have been made in the development and security of iron resources. We accelerated the development of domestic iron ore resources and helped solve bottlenecks and difficult problems. The number of key iron ore projects increased to 63, and the total iron concentrate production capacity reached 191 million tons, of which 14 large-scale projects have started construction. The relevant ministries and commissions of the State continue to promote the development of iron resources and coordinate the solution of policy issues such as tailings ponds. According to the National Bureau of Statistics, in the first half of the year, China's iron ore production of 554 million tons, an increase of 13.2%. Improve the strategic mineral resources exploration, production, supply, storage and marketing coordination and connection system, China Minerals launched the iron ore long association import agent procurement model, recognized by both the supply and demand, and achieved further results with the support of steel enterprises. Ensure resource security, enhance the stability of cooperation, improve the efficiency of industry procurement, storage and transportation and information services, and promote the ecological harmony, health and sustainable development of the iron ore industry chain. Overseas resources development news, Baowu and Simandou win alliance completed the Simandou iron ore project equity delivery, Baowu Resources Ashburton project officially put into operation, Xipo project realized the first iron ore shipment. Problems such as the difficulty of importing scrap steel, billing and statistics are expected to be solved, and the National Standardization Administration has set up a project to revise the standard for recycled steel raw materials; The scrap reverse billing policy landed at the end of April this year, and the "first ticket" problem plaguing the scrap field has been solved, and a good policy environment conducive to the development of scrap is taking shape.
New progress has been made in industrial chain exchanges and cooperation. Build an upstream and downstream cooperation platform, hold the supply and demand matching meeting of the whole industrial chain of steel structure construction, promote the sharing of information resources between upstream and downstream enterprises, and achieve seamless docking of all links. Draft and complete the "On vigorously promoting Steel structure.
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