In 2014, the overall steel industry will still maintain its low profit status

At the end of 2012, the actual integrated domestic steel production capacity was approximately 976 million tons. By 2012, crude steel production was 731 million tons, and the capacity utilization rate was 74.9%. Among them, the steelmaking capacity of the member units of the China Iron and Steel Association was 794 million tons last year, an increase of 54.8% over 2008, and a capacity utilization rate of 76.4%.

To implement the "Guiding Opinions on Resolving the Contradiction of Serious Overcapacity" and the "Responsibility Letter of Hebei Province on Prevention and Control of Atmospheric Pollution", promote the adjustment of the steel industry structure and pollution control, and implement the provincial government to solve the excess production capacity of steel products for the second time "On Sunday action".

The data released by the Ministry of Industry and Information Technology recently showed that in 2013, China’s crude steel production reached 779 million tons, an increase of 7.5% year-on-year, an increase of 4.4 percentage points from the same period of last year; steel production (including duplicates) was 1.07 billion tons, a year-on-year increase of 11.4%. Increased by 3.7 percentage points over the same period last year. China's crude steel output accounted for 48.5% of the world's total, an increase of 1.8 percentage points year-on-year.

In 2013, China's steel industry restructuring achieved many results. The quality of varieties continues to improve. In 2013, the average output of high-strength steel bars in some regions accounted for about 80% of the total output of hot-rolled ribbed bars. The target of the “Twelfth Five-Year Plan” was achieved two years ahead of schedule.

However, relevant experts also pointed out that the steel industry still faces problems such as overcapacity, environmental pressure, low profitability, and rising debt ratio. China has nearly 1 billion tons of steelmaking capacity, and the capacity utilization rate is only 72%, which is obviously lower than the normal level.

At the same time, homogenous competition is further spreading to high-end products. In 2013, the output of top 10 steel producer groups accounted for 39.4% of the country's total crude steel output, down 6.5 percentage points year-on-year. Concentration of the industry did not rise but dropped, which exacerbated market competition.

In addition, the vicious competition in the steel market deserves attention, and the price war of enterprises has intensified. The long-term implementation of the principle of non-payment and non-delivery by iron and steel enterprises has been difficult to maintain in some varieties.

Experts believe that in 2014, China's steel production demand will continue to grow, but the growth rate will decline; the growth rate of crude steel production will decline, the domestic steel market price will remain low, and the price of imported iron ore will be monopolized. Easy to rise and fall. The overall industry will still maintain its low profit status, and the production and operation situation remains grim.

When the elimination of outdated production capacity enters the second phase, only elimination can no longer be eliminated. The rest are all masters. Domestic steel production capacity surplus and elimination of outdated production capacity have been following suit. At the end of 2012, the actual integrated domestic steel production capacity was approximately 976 million tons. According to statistics, the output of crude steel was 731 million tons, and the capacity utilization rate was 74.9%.

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