Shagang first quarter profit 6.1 billion yuan shen wenrong talks about the current industry hot spot

"The electric steelmaking process can promote the overall energy saving and environmental protection level of the industry, and optimize and upgrade the variety structure.But, want to study scrap resource, electric power to wait to match a problem."Shen wenrong thinks.

"We should abandon the idea of total expansion, strictly control new production capacity and firmly follow the path of high-quality development.""The situation of the steel industry in the first half of this year will be better than that in the first half of last year.On April 20, all over the united metallurgical chamber of commerce annual meeting, the chairman of jiangsu shagang group, the whole united metallurgical honorary President of the chamber of commerce wen-rong shen accepted China metallurgical newspaper, China steel news network reporter an exclusive interview, the industry situation of iron and steel, electric steel development, production and trade friction problem such as elaborated his own views.

On the situation: the second half of the year to focus on new capacity

"The first half of this year will be better than the first half of last year, but the second half depends on capacity release."Shen wenrong judged.His analysis, in general, the first quarter of this year's average profit of steel mills in the 300 yuan/ton -400 yuan/ton, good enterprises can reach 600 yuan/ton -700 yuan/ton, and last year's first quarter average profit of steel mills less than 100 yuan/ton level.

According to statistics, in the first quarter, the national pig iron, crude steel and steel output was 175 million tons, 212.15 million tons and 246.93 million tons, respectively, year-on-year growth of -1.2%, 5.4% and 4.7%.According to the statistics, the benefit of the steel industry in the first quarter was better than that in the same period of last year. The central iron and steel enterprises made a profit of 6.9 billion yuan in the first quarter of this year, with a year-on-year growth of 129.8%.Shagang also posted a profit of 6.105 billion yuan in the first quarter.

For the second half of the industry situation, shen wenrong think should pay attention to the following factors.

First, the crackdown on "floor steel" and capacity cutting last year greatly improved the market supply and demand relationship in the second half of last year.In the second half of this year, crude steel production is on a first-quarter trend, which means supply will increase.Second, steel demand will not be higher than last year and may even decline.Third, exports will not increase much this year.It mainly depends on the price difference between home and abroad.Current domestic and international steel price level is about the same, export is not too much power.Fourth, we will focus on new capacity in the second half of the year."Intermediate frequency furnaces were hit last year, reducing steel output. However, many enterprises have switched to electric furnaces, and the furnace capacity will be fully released in the second half of the year.""This is production capacity that was not available last year," shen said. "we need to pay close attention to it."

"In addition, the state-approved relocation adjustment project will also start to release production capacity.""In fact, there is no need for some steel mills to relocate. It is better to make use of existing land and other resources to transform locally.At present, China's coastal has no shortage of steel mills.And some nominal is reduced relocation, in essence is incremental relocation.

"At present, don't relocate any more. Some production capacity can be shut down."At the policy level, we need to make sure that investment is directed to comprehensively enhancing core competitiveness and making the economy stronger."Shen wenrong suggested.

Electric furnace steel: scrap resource matching problem should be studied

After the comprehensive ban of "floor bar steel", many enterprises have changed to electric arc furnace.Electric steelmaking has gradually become a hot spot in the steel industry.

To this end, shen wenrong thinks, want science, reasonable, orderly guide development of electric furnace steel.

"The electric steelmaking process can promote the overall energy saving and environmental protection level of the industry, and optimize and upgrade the variety structure.But, want to study scrap resource, electric power to wait to match a problem."Shen wenrong thinks.

Producing 100 million tons of furnace steel requires about 140 million tons of scrap, Mr. Shen said.The proportion of converter scrap has increased from 5%-10% to 15%-20%, consuming 160m-170m tonnes of scrap annually."At present, China's annual total scrap production is only 180 million tons.By 2020, it is expected to produce 200 million tons of scrap steel annually."Shen wenrong analysis.

According to introduction, current domestic scrap price in 2500 yuan/ton -2600 yuan/ton, import scrap in 2800 yuan/ton -3000 yuan/ton.Because the price is too high, some electric steelmaking enterprises have entered the state of loss."Last year, a lot of scrap exports were due to the price difference between domestic and foreign markets.Shen wenrong pointed out.

Shen wenrong analyzed that 55% of the crude steel output in the United States is electric furnace steel, 45% is converter steel, the United States produces 70 million tons to 80 million tons of scrap steel annually, and China has 180 million tons."But the us has a subsidy of $30 per tonne of scrap, and China raises taxes;The U.S. has more than 10.5 billion tons of steel, while China has less than 10 billion tons.The main source of scrap steel in the United States is used cars, steel structure, scrap steel in China is in concrete;The U.S. has 200 cars per 100 people. China has 25."

Trade frictions: we should actively respond to them in accordance with wto rules

The us imposed a 25 per cent tariff on steel imports from China, raising concerns about steel exports.Shen wenrong believes the direct impact on China's steel industry is small because Chinese steel itself does not export much to the us."However, we still need to actively respond in accordance with wto rules."He said.

"Shagang's active response to anti-dumping and other trade barriers is mainly aimed at explaining the reason to relevant countries and showing their firm opposition."Shen wenrong said.

According to statistics of the General Administration of Customs, in March, China exported 5.651 million tons of steel, 804 million tons more than in February, a month-on-month growth of 16.6% and a year-on-year decline of 25.3%.Steel imports totaled 1.234 million tons, up 207,000 tons from February, up 20.2 percent month-on-month and down 5.1 percent year-on-year.From January to march, China exported 15.148,000 tons of steel products, down 26.4% year-on-year.Imports of steel totaled 3.451 million tons, down 0.8 percent year-on-year.

In this regard, shen wenrong believes that steel imports and exports more or less, the key factor or look at the price difference and brand competitiveness.

He analyzed, at present, the world more than 200 countries and regions, among them can produce steel about 50, in the real antidumping is not more than 30 countries such as the United States."Nine-tenths of the world's markets are open and there is always a need for imports.""This year," he stressed, "it is not a question of whether steel can be exported or not. It is a question of whether there is a price difference."

"In a word, steel enterprises should fully anticipate this year's difficulties and should not be blindly optimistic.China's iron and steel industry needs to completely change the old path of total expansion, firmly follow the path of high-quality development, promote mergers and reorganizations, do a good job in energy conservation and environmental protection, in particular, continue to deepen the work of cutting capacity, and complete the task of cutting capacity and limiting production.Shen wenrong concluded.