Lv Gui pointed out that in the first three quarters of this year, in the face of complicated international situation and domestic economic downward pressure, measures to implement a series of steady growth in the country, driven by steel production of galvanized steel pipe and demand are kept growing to a certain extent, and economic benefits, although last year have bigger landslides but did not exceed expectations, and overall is still in a reasonable level. The operation of the steel industry is stable on the whole, but there are changes in the stability, changes in the worry.
Lu guixin pointed out that the steel industry appeared new situation and new problems. First, excessive growth in steel production. Second, the industry efficiency has declined sharply.The main reason is that the iron ore price directly increases the cost of steel production, steel prices fall to make business operations.Third, the industry concentration did not rise but fell.According to statistics, the industrial concentration ratio of China’s top 10 steel enterprises dropped from 48.6% in 2010 to 35.3% in 2018. “In the face of new conditions and problems in the steel industry, steel pipe suppliers must take further effective measures to consolidate and expand the achievements in cutting overcapacity and improve the quality of the industry’s development.”"Stressed lu guixin.He pointed out that we should focus on the following five aspects.
First, we need to further raise our ideological awareness. Cutting overcapacity in steel and iron is an important task of supply-side structural reform. We should unswervingly promote the work of reducing overcapacity in steel and make solid efforts to implement all the work, achieve results, and consolidate and expand the achievements in cutting overcapacity in steel and iron. Second, correctly handle the relationship between capacity and output. Cutting overcapacity of round steel pipe is not just about cutting “capacity” for the sake of cutting capacity. It is about keeping total capacity at a reasonable scale, bringing capacity utilization back to a reasonable level, guiding rational production, maintaining market supply and demand balance, promoting industry quality and efficiency, and avoiding market oversupply, vicious competition and price war.
As China’s steel enters the stage of high-quality development, steel production and consumption will be in the peak platform area for a period of time. Although the output fluctuates, the demand of square steel pipe will not increase significantly.Therefore, we must properly handle the relationship between production capacity and output, address both symptoms and root causes, adopt a comprehensive approach, standardize the order of market competition, and create a favorable development environment.
Send your message to us:
Post time: May-25-2020