Welcome to the official website of Shandong Ao Feng Metal Materials Co., Ltd.

Company News

Home News Center Company News China Iron and Steel...

China Iron and Steel Association Third Quarter Information

Source: Ao Feng      DateTime:2019-08-08



  Since the beginning of this year, the international economic and trade environment has undergone significant changes. Under the strong leadership of the Party Central Committee with Comrade Xi Jinping as the core, China has actively responded to many risks and challenges in the domestic and international economic situation, achieved steady economic growth, and continued to optimize its structure. In accordance with the decision-making arrangements of the Party Central Committee and the State Council, the iron and steel industry continued to deepen the supply-side structural reforms and actively responded to changes in the domestic and international markets. The industry's operations also maintained an overall stable and stable development trend, but it has changed steadily.

  In the first three quarters, the steel industry has achieved a steady state of stability for many years.

  1.The market supply and demand are basically balanced. In terms of supply, in the first three quarters, the nation's symbiosis produced iron, crude steel and steel were 579 million tons, 699 million tons and 821 million tons respectively, up 1.19%, 6.07% and 7.21% year-on-year respectively. The addition of “strip steel” to the market space is the replacement of backward production capacity by high-quality production capacity. In terms of demand, in the first three quarters, the GDP was 65.1 trillion yuan, a year-on-year increase of 6.7%. The growth rate remained within a reasonable range, providing a stable market demand for the steel industry.

  2.Steel prices remain within a reasonable range. Since the beginning of this year, the Steel Association's CSPI China Steel Price Index has fluctuated between 110 and 120 points. At the end of September, the Steel Association's CSPI China Steel Price Index was 121.64 points, up 6.87% year-on-year. In the first quarter, steel prices have fallen, causing concern throughout the industry. Regional large-scale key enterprises have played a role as stabilizers, stabilizing market prices and expectations, and there has been no ups and downs. The fact that steel prices remain basically stable within a reasonable range is also an example of a basic balance between supply and demand. In the long run, there will be no tight supply.

  3.The order of the iron ore market has clearly improved. Since the beginning of this year, the iron ore market has been relatively stable. The pricing of iron ore has gradually shifted from single index pricing to mixed index pricing. The pricing mechanism has become more reasonable, the market order has gradually improved, and iron ore prices have not fluctuated significantly. From January to September, the country imported 800 million tons of iron ore, down 1.6% year-on-year, with an amount of 55.8 billion US dollars, down 5.4% year-on-year. The stable price of minerals has a stable effect on the efficiency of steel mills.

  4.The economic benefits of the company continued to improve. From January to September, member steel enterprises realized sales income of 3.06 trillion yuan, a year-on-year increase of 14.47%; realized profits and taxes of 346.681 billion yuan, an increase of 68.20%; total profit of 229.967 billion yuan, an increase of 86.01%; sales profit margin basically reached The profit rate of industrial enterprises above designated size. The steel industry has reversed the situation of meager profits and even losses for many years.

  5.The level of energy conservation and environmental protection has increased. The whole industry attaches great importance to energy conservation and environmental protection, and has increased investment. This year, industry investment has seen positive growth, most of which is concentrated in environmental protection investment. Enterprise environmental protection actively implements ultra-low emissions. From January to September, the total amount of wastewater discharged from member steel enterprises decreased year-on-year. 1.13%, the external sulfur dioxide decreased by 12.57%, the soot decreased by 8.64%, the industrial dust decreased by 7.46%, the new steel consumption per ton decreased by 5.52%, and the comprehensive energy consumption per ton decreased by 2.77%.

  6.The asset-liability ratio continued to decline. The steel industry took the initiative to repay debts with better returns and increased leverage. On the basis of a slight decline in the asset-liability ratio in 2016 and 2017, this year has declined. At the end of September, the asset-liability ratio of member steel companies was 66.11%, a year-on-year decrease of 3.91 percentage points. This is especially difficult in a policy environment where the country is guarding against major financial risks and the financing of the steel industry is still limited.



Copyright©Shandong Ao Feng Metal Materials Co., Ltd. All rights reserved.

Order Now!