The iron and steel industry is an important basic industry of the national economy, an important support for building a modern power, and an important field for achieving green and low-carbon development. In 2022, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Ecology and Environment jointly issued the Guiding Opinions on Promoting the High-quality Development of the Steel Industry, clarifying the goals and paths for achieving high-quality development of the steel industry, and proposing to strive to 2025. The iron and steel industry has basically formed a high-quality development pattern with reasonable layout structure, stable resource supply, advanced technology and equipment, prominent quality brands, high intelligence level, strong global competitiveness, green, low-carbon and sustainable development.
First, China's steel industry has developed rapidly, becoming the world's largest steel producer and consumer. Under the background of stable economic growth and continuous optimization of industrial structure, the steel industry is running smoothly, the technical level is constantly improving, and it is gradually transforming and upgrading to high-end and green. The iron and steel industry ran smoothly, and the output of crude steel remained above 1 billion tons for three consecutive years. Data from the National Bureau of Statistics show that in 2020, China's crude steel production exceeded 1 billion tons for the first time, reaching a historical peak of 1.065 billion tons. With the in-depth implementation of the capacity adjustment policy, crude steel production in 2021 and 2022 will be 1,035 million tons and 1,018 million tons, respectively, down 2.8% and 1.7% year-on-year. In 2022, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, and the National Bureau of Statistics carried out the work of reducing the national crude steel output, guiding steel enterprises to abandon the extensive development mode of winning by quantity, which will strongly promote the transformation and upgrading of the steel industry and achieve high-quality development.
Second, the industrial innovation capacity continues to improve, and the output value of new products is on the rise. In recent years, China's iron and steel industry has continuously increased R&D investment in variety development, process optimization, process innovation, equipment renewal and technological progress, and improved innovation capabilities. In 2022, the self-sufficiency rate of 22 types of steel products in China exceeded 99%, of which 19 classes reached 100%, and the output value of new products of key steel enterprises was 377 billion yuan, although it declined from 419 billion yuan in 2021, but compared with 298 billion yuan in 2020 and 258 billion yuan in 2019, the overall trend showed an upward trend. In addition, China's steel industry patent applications accounted for more than 60% of the global proportion, reflecting the significant progress of China's steel industry research and development capabilities, contributing Chinese wisdom to global steel technology innovation.
Third, the environmental protection indicators continue to improve, electric arc furnace steel production continues to rise. Data from the China Iron and Steel Association show that in 2022, the consumption of new water per ton of steel by key statistics member steel enterprises fell to 2.44 cubic meters, down 0.7% year-on-year; Sulfur dioxide emissions per ton of steel were 0.24 kg, down 19.8% year-on-year; Particulate matter emissions per ton of steel were 0.28 kg, down 18.3% year on year; Nitrogen oxide emissions per ton of steel were 0.46 kg, down 12.4% year-on-year. At the same time, the key statistics of member steel enterprises energy-saving, environmental protection investment 37.144 billion yuan, an increase of 12.0%, accounting for 29.2% of fixed investment. The green transformation of China's iron and steel industry has achieved remarkable results. In addition, China's electric arc furnace crude steel production in 2020 is only 98 million tons, and in 2021 increased to 109 million tons, an increase of 11.2%, accounting for the proportion of the annual crude steel production of 10.6%, although compared to the target of 15% in 2025 there is still room for progress. However, it also reflects that China's iron and steel industry has made some progress in promoting the proportion of electric arc furnace steel production.
Fourth, the steel industry chain is complete, and the supply and demand of production capacity are basically balanced. China has built the world's largest steel industry system with the most complete industrial chain. China's iron and steel industry chain is relatively complete, and the advantages of relatively strong technical autonomy are further highlighted. With the transformation and upgrading of the steel industry and the continuous advancement of supply-side structural reform, the quality and efficiency of the steel industry have steadily improved, and the industry has a stable operation trend. China Iron and Steel Industry Association data show that the production and sales ratio of China's major steel enterprises is maintained at 95% to 100%, indicating that the basic balance between market demand and enterprise production capacity, and the relationship between supply and demand is relatively stable. This stable supply and demand relationship can make the production and operation of steel enterprises more orderly and efficient, reduce the inventory pressure of enterprises, and improve the production efficiency and profitability of enterprises.
Fifth, the investment structure is constantly optimized, and the types of high-end steel products are constantly innovated. China Iron and Steel Industry Association data show that in 2022, the key statistics of member steel enterprises to improve the process, improve product quality, increase the investment of new products of 39.735 billion yuan, an increase of 14.0%, accounting for 31.2% of the fixed investment. Since the 18th National Congress of the Communist Party of China, China's iron and steel enterprises have always adhered to independent innovation, aiming at the research and development of high-end silicon steel key core materials such as UHV power transmission and transformation, clean generator sets and new energy vehicle drive motors, breaking the long-term monopoly of foreign countries. For example, Baosteel silicon steel BeCOREs can be widely used in major national projects and important industries, ensuring the safety of the industrial chain and realizing the autonomy and control of the power industry; Shougang has for the first time developed a comprehensive control technology based on structure properties, surface quality, plate shape size and noise reduction of oriented silicon steel, and its products meet the global demand for energy-saving low-noise transformers. Let's wait. The development of new steel materials not only meets the diversified needs of the market, but also provides strong support for technological innovation and sustainable development of the industry. Moreover, because of its better environmental performance, new steel materials can effectively reduce energy consumption and pollution emissions, and help promote the development of the steel industry in a green and sustainable direction.
6. Steel exports gradually rebounded, and the international market share remained stable. According to the General Administration of Customs data, from January to April 2023, China's cumulative steel exports of 280.14 million tons, an increase of 55.0%; Steel imports totaled 2.498 million tons, down 40.1% year-on-year. The recovery of overseas steel demand and China's steel cost and price advantages have promoted the substantial growth of steel exports. From the current level of orders, the export volume in May will also maintain a high level, which can be inferred that the export volume of steel in 2023 May exceed expectations. At present, China's steel industry is in a period of adjustment and transformation, although the export volume gradually rebounded, but still actively explore the development model of balanced domestic and export sales, while increasing technological innovation and environmental protection measures investment, and strive to improve the quality of steel and added value, in the future global market competition to maintain the advantage.
Seven, China's iron ore prices fell to a low point in the year since April, iron ore prices ' empty fire ' showed a gradual decline. Entering May, Singapore iron ore futures prices twice lost the $100 mark, falling to the low point of the year. Multi-factor resonance drive iron ore prices accelerated decline, it can be said that in the market supply and demand fundamentals have not changed significantly, iron ore prices finally returned to rationality. According to preliminary analysis, iron ore prices will see below $100 / ton, or in the range of $90 to $95 / ton. Since the beginning of this year, in the case of no major changes in the market supply and demand fundamentals, iron ore prices have risen for three consecutive months, once reaching $117.70 / ton in March, up nearly 30% from the end of last year, and some varieties of iron ore have even soared to $130 / ton. Since the beginning of this year, in the case of no significant change in the actual supply and demand relationship, there is speculation in the iron ore market, and the price has gone up all the way. In the face of the ' empty fire ' of iron ore prices, since the beginning of this year, the National Development and Reform Commission has repeatedly ' struck iron ' , jointly with the General Administration of Market Supervision and the Securities Regulatory Commission to remind iron ore trading enterprises and futures companies not to speculate excessively.
Hainan steel wholesale
