The steel industry saw profits jump in 2019

Recently, the data released by the national development and reform commission showed that the steel industry achieved a profit of 470.4 billion yuan in 2019, an increase of 39.3 percent over the previous year in terms of the production of cold-formed hollow sections. The benefit soaring of iron and steel industry cause wide attention.The year 2019 is a year for the steel industry to achieve steady and sound development, which is reflected in the obvious improvement of the market environment, and the obvious improvement of enterprise benefits. In 2019, steel demand is basically stable and the balance between production and demand is basically reached. Steel prices remain relatively stable,which provides a strong evidence.

galvanized square tube

In the first 10 months of 2019, CSPI(China steel price average index) basically fluctuated between 110 and 120 points. After entering November, the price of steel like cold rolled steel pipe appeared a rapid decline, and recovered in December. For the whole year, the CSPI index stood at 114.75 points in 2019, up 7.01 points from a year earlier. Due to the good market situation, steel production is in full swing and the industry operating conditions improved significantly. From January to December 2019, sales revenue reached 4.11 trillion yuan, up 13.04 percent year-on-year. Its profit reached 286.272 billion yuan, up 41.12% year on year.The asset-liability ratio was 65.02 percent, down 2.63 percentage points year-on-year.

In the eyes of many steel pipe manufacturers, the significant improvement in the profitability of the steel industry in 2019 is mainly due to the country’s efforts to promote supply-side structural reform.Serious overcapacity is affecting the healthy development of the steel industry. As the forerunner of supply-side structural reform, the steel industry has continued to deepen the work of capacity reduction, exceeding the annual target of 30 million tons in 2019. In resolving the problem of severe overcapacity in iron and steel, relevant parties have done a lot and made strenuous efforts.

Despite the great achievements in steel capacity reduction, it is still a long way to go for the steel industry to promote supply-side structural reform. At present, there are still problems in the steel industry capacity structure. At the same time, some problems like the lack of environmental protection board, unreasonable layout still plagued the development of the industry. In order to achieve steady and long-term development, China steel tube factories should effectively focus on improving quality and efficiency upgrade and the steel industry should take the lead in achieving high-quality development.

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Post time: Jun-08-2020
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