in the first half of the year, china iron and steel industry association member enterprises worked hard around "remove production, control production, remove leverage, prevent risk, reduce cost, increase efficiency" and achieved outstanding results. in the recently held six sessions of the china iron and steel industry association executive director (expansion) meeting, china iron and steel industry association director jin wei pointed out that china's steel industry achieved steady and good momentum at the first half, mainly due to deepen promoting of resolving excess capacity work, in particular, the outstanding results achieved by curbing the "strip steel" , thus changing the "bad money to drive out good" market environment. with the deepening of the structural reform of the supply side, the downstream steel industry on the steel product quality and service requirements are increasing, iron and steel enterprises shall to take the initiative to actively adapt.
jin wei introduced that the first half of china's crude steel production up to 420 million tons, an increase of 4.6%. among them, the china iron and steel industry association member companies produce 324 million tons of crude steel, an increase of 6.8%, while members outside the production of crude steel is down 2.11%. jin wei believes that the first half of china's crude steel production growth is banned in the "land of steel" after the growth, which has never been for many years, its practical significance and the previous growth is very different, fully explain the production capacity promote the further development of advanced production capacity.
due to domestic steel prices higher than the international price, corporate exports will decline in the first half of china's steel exports continued the trend since 2016 decline, the national export of 40.99 million tons of steel, down 15.93 million tons, down 28%; national imports of steel 6.8 million ton, an increase of 340,000 tons, an increase of 5.3%. jin wei stressed that china's steel products to actively meet the international market demand, to maintain a reasonable share in the international market, is the need for long-term adherence to the strategy, not because of temporary market changes and easily give up.
in the first half of the year, china's steel prices began to rational rise, as of the end of june steel composite price index 101.03 points, up 1.53% over the end of 2016. china iron and steel industry association, corporate profit margins of only 3.04%, the average profit per ton of steel is only about 160 yuan, part of the enterprise in profit and loss, part of the enterprise is still at a loss, indicating that china's steel industry to achieve efficiency continues to improve the task is still arduous.
jin wei pointed out that we must clearly see that china's steel industry there are still some uncertainties in the development of the industry is also facing some prominent contradictions and problems: first, by the impact of the market, crude steel production is still maintained a high level , the risk of steel price fluctuations in the increase; second, iron and steel enterprises to reflect the strong financing difficulties, financing is still very prominent problem, the whole industry asset-liability ratio is still high, corporate financial burden is still heavy, the difficulty of leveraging is still large; is the part of the enterprise there are still varying degrees of loss, the industry average sales profit margins in the major industrial sectors is still at a low level, to achieve the whole industry is still difficult to tackle the foundation; fourth, to prevent the "land steel" resurgence and electric furnace construction and blind development task arduous; five steel exports continued to decline, increase the domestic market pressure.
jin wei stressed that the smooth operation of the steel industry is to ensure that the production capacity, to the implementation of the premise of leveraged policy, but the "steel" on the healthy development of the steel industry damage greatly. in the first half of the year, china's steel industry to resolve the excess capacity in particular to clear the "land of steel" work has achieved a stage of victory, according to the "land steel" special inspection situation, the current statewide supervision within the "land steel" basically in the shutdown state, most of the "land steel" enterprises have been in accordance with the "four thoroughly" requirements were removed. in the second half of the year, china's steel industry will enter the decisive phase of the completion of the year to complete the task and clear the "land steel" verification and acceptance stage, we must firmly grasp the disposal of "zombie enterprise" this "cow nose", and actively do the relevant work, industry "zombie enterprises" to speed up the exit, it is particularly important to resolutely prevent the "land of steel" in various names resurgence.
china iron and steel industry association party secretary and secretary-general liu zhenjiang introduction, in the inter-ministerial joint meeting under the unified arrangements, the china iron and steel industry association with the national development and reform commission and the ministry of industry to carry out industry census research work, 2016 has completed five provinces and cities in jiangsu, this year in the first half, completed in liaoning and other provinces and cities in the bottom. in the second half of the year, china iron and steel industry association will participate in the ban on the "land of steel" inspection, to work to supervise the work, continue to carry out other provinces and cities. from the first half of the situation, the provinces to ban the "land steel" task has been completed, the annual capacity to resolve the excess capacity to complete two-thirds of the task.
