"Twelve Five Years" China's steel demand grows at an average annual rate of 2.6 to 4.6

The China Iron and Steel Industry Association recently stated that the average annual growth rate of the domestic steel market during the “12th Five-Year Plan” period is approximately 2.6% to 4.6%, which is a significant change from the high demand and high growth during the “Eleventh Five-Year Plan” period. The steel industry must adapt to this change.

The China Iron and Steel Association pointed out that by the end of 2011, the steelmaking capacity of the entire industry had reached about 768 million tons, which was significantly greater than the demand of the domestic market. The overall contradiction of overcapacity was prominent, coupled with the restriction of the entire society to strengthen energy, resources, and the environment, which severely restricted With the expansion of the scale of the steel industry, the current strict control of total steel production and capacity expansion is a major task facing the entire industry.

According to reports, this year the whole industry will do four key tasks: First, adjust the industrial layout; second, adjust the industrial structure; third, adjust the product structure; and fourth, adjust the energy saving and emission reduction structure. China Steel Association stated that it is necessary to organize production in strict accordance with the needs of the domestic market, maintain a basic balance between supply and demand in the domestic market, achieve a reasonable location and stability of steel prices in the domestic market, and promote the improvement of the quality and efficiency of the entire industry.

The data shows that under the pressure of rising costs and falling prices, steel companies are still operating at low efficiency. In the first quarter, 77 large and medium-sized enterprises in the China Steel Association reported a sales income of 840.841 billion yuan, a profit of 24.46 billion yuan, and a product sales profit margin of only 2.91%, which was 3.29 percentage points lower than the average sales margin of 6.2% in the industrial sector.

Regarding how to deal with the significant price hikes of imported iron ore, China Steel Association (CISA) stated that it is mainly doing three things: First, aiming at the highly monopolistic situation of international iron ore seaborne trade, it will continue to adhere to the “going out” strategy and increase its The investment, development, and shareholding of overseas iron mines will further increase the proportion of overseas equity mines; second, it will urge the state to strengthen its policy support for domestic mine production and construction, achieve long-term stability, and continuously increase the output of domestic iron ore; Imported iron ore market order, continue to do a good job of import iron ore agent system and import iron ore flow management.