I. Achievements of industry reform and development in the past 5 years
The past five years have been the five years in which China’s steel industry has further advanced supply-side structural reforms, accelerated structural adjustments and transformation and upgrading, and laid the foundation for high-quality development of the industry. Five years of strength. In the past five years, we have ushered in the 40th anniversary of reform and opening up and the 70th anniversary of the founding of New China, giving us an opportunity to take stock of the struggle and look forward to a better future.
(1) De-capacity was successful and the industry maintained continuous and stable operation
In 2015, China ’s crude steel production capacity reached 1.128 billion tons, while crude steel output was only 804 million tons, with a capacity utilization rate of 71.3%. In the context of global steel overcapacity, many problems of the Chinese steel industry have been superimposed and affected each other, and business operations have fallen into unprecedented difficulties.
From 2016 to 2018, under the leadership of relevant government departments, the entire industry faced the challenge. In just 3 years, it successfully reduced the crude steel production capacity by more than 150 million tons, and exceeded the upper capacity target set by the State Council two years in advance. ; Banned “ground steel” in accordance with laws and regulations, the market environment was effectively purified, high-quality capacity was brought into use, and capacity utilization was restored to a reasonable range.
With the deepening of the work to resolve excess steel production capacity, steel production needs to be rebalanced, the industry is basically stable, and the economic benefits of enterprises have rebounded sharply, reaching a historically good level in 2018. The results of China’s steel production reduction not only benefited Chinese steel enterprises, but also effectively promoted the recovery of the world steel industry.
Specifically, the first is that steel production has maintained a sustained high growth. In 2015, the national crude steel output was 804 million tons. It is expected that crude steel output will reach about 980 million tons in 2019, with a cumulative increase of 176 million tons in 5 years, an increase of 21.9%.
Secondly, the total volume of steel exports has declined and the structure has been optimized. In 2015, the country’s steel exports reached a historically high level of 112 million tons, with an estimated 65 million tons exported in 2019. The export ratio of steel sheet to tube increased from 51.99% to 73.25%, and the unit price of exports increased from US $ 559 / ton to US $ 831 / ton.
Third, steel prices rebounded and stabilized. In 2015, the domestic market steel prices fell sharply. The annual average of the CSPI index was 66.43 points, and the average value of 2018 was 114.75 points. Although the index in 2019 is slightly lower than 2018, it is generally stable.
Fourth, industry profits have picked up and the asset-liability ratio has fallen. In 2015, the key statistics of iron and steel enterprises lost 84.688 billion yuan, and in 2019 it is expected to realize a profit of 180 billion yuan. The corporate asset-liability ratio dropped from 71.04% at the end of 2015 to 63.59% at the end of November 2019.
(2) Promote ultra-low emission transformation and greatly improve the level of green development of the industry
In recent years, under the pressure of the world’s strictest environmental protection standards, the majority of iron and steel enterprises have actively developed ultra-low emission technologies for multi-pollutants from flue gases around five key processes including coking, sintering (pellet), ironmaking, steelmaking, and rolling And research on high-temperature flue gas circulation classification purification technology, Shougang, Baowu, Angang, Hegang, TISCO, Delong, Zhongtian and a number of iron and steel companies have vigorously promoted ultra-low emission transformation and took the lead in achieving breakthroughs. At the same time, equipment upgrades were carried out through weight reduction replacements. A number of energy-saving and environmental protection technologies and indicators have reached the world advanced level. They have made positive contributions to promoting the green development of the steel industry and helping to win the defense of the blue sky.
(3) Breakthroughs in mergers and reorganizations, and further optimization of industrial organization structure
In recent years, substantial progress has been made in mergers and acquisitions in the steel industry. The reorganization of Baowu has created China’s world-class “steel aircraft carrier”. Baowu reorganized with Maanshan Iron and Steel and Heavy Steel, basically completed its layout in the Yangtze River Basin and the southeast coast, becoming one of the world’s most competitive steel companies. Jianlong Group has reorganized Shanxi Haixin, Beiman Special Steel, Acheng Iron & Steel, Xilin Iron & Steel, Baotou Iron & Steel, Ningxia Shenyin, and expanded its scale, optimized its layout, and further enhanced its competitiveness and industry status. Delong Group reorganized Bohai Iron and Steel through judicial reorganization, with a combined capacity of 30 million tons, and entered the industry * echelon in one fell swoop. CITIC Special Steel reorganized Qingdao Special Steel to build the world’s largest specialized special steel leading enterprise group. Shagang successfully restructured Northeast Special Steel to seize the commanding heights of technology, and General Steel became “special”. These classic cases with the nature of “breaking the game” have played an active role of demonstration for “mixed reform” across regions and ownership.
(IV) Vigorously promote scientific and technological innovation and strengthen the overall competitiveness of the industry
Over the past five years, the steel industry has implemented an innovation-driven development strategy in accordance with the overall national economic development. The capability of scientific and technological innovation has been significantly improved, and the highlights of scientific and technological innovation have continued to promote the transformation and upgrading of the steel industry and its competitiveness.
Specifically, the first is the continuous increase in scientific research investment and the significant improvement in scientific and technological innovation capabilities. The research and experimental development expenditure of the entire industry increased from 56.123 billion yuan in 2015 to 70.688 billion yuan in 2018, and its proportion of operating income increased from 0.89% to 1.05%; the number of effective invention patents increased from 12,322 in 2015 to 2018. The sales revenue of new products increased from 662.9 billion yuan in 2015 to 957.5 billion yuan in 2018, with a compound annual growth rate of 9.63%. In the past 5 years, it has won 2 first prizes and 23 second prizes; 387 projects have won metallurgical science and technology prizes, including 4 special prizes and 66 first prizes.
Second, the supporting role of steel materials has been significantly enhanced. A large number of high-end products were successfully developed by Baowu, Anshan Iron and Steel, Taigang, Shougang, CITIC Special Steel, Northeast Special Steel, Hegang, Baotou Steel, Steel Research Group and other units, which strongly supported the localization of high-end equipment manufacturing materials. The materials for wheels, axles and bogies of high-speed EMUs at a speed of 350 kilometers per hour have been successfully evaluated. The physical quality level of the 0.02mm wide ultra-thin stainless steel precision strip (hand-tipped steel) has reached the international advanced level. The world’s premiere of high-grade hot-formed steel automotive panels was achieved. A large number of ultra-high-strength steels, stainless steels, and high-temperature alloys, such as steel for new energy automotive motors, were successfully developed and industrialized. While achieving breakthroughs in the development of high-end products, the physical quality of steel products is also steadily improving. In 5 years, a total of 625 steel products have reached the international level of similar products, and 41 steel products have reached the international advanced level.
The third is the rapid development of intelligent steel manufacturing. In the past 5 years, the integration of the two industries in the steel industry has continued to advance. The integration index of the two industries reached 53.6 in 2019, the NC ratio of key processes reached 70.9%, and the digitization rate of production equipment reached 49.8%, which is generally at the leading level in the heavy chemical industry. Based on the integration of the two industries, the steel industry fully grasps the opportunity of the industrial revolution brought by the new generation of information technology, integrates intelligence into the decision-making process of steel manufacturing and operations, and accelerates the organic integration of advanced equipment, advanced materials, advanced processes and the industrial Internet. . At present, the steel industry has created 9 smart manufacturing pilot demonstration enterprises. Baowu, Anshan Iron and Steel, TISCO, Nangang and other enterprises have achieved significant results in smart workshops, smart mines, mass customization and other applications.
Fourth, the role of standard innovation was further brought into play. Focusing on the fields of “hot-rolled ribbed steel bars, steel for structural steel, steel for ships, electrical steel” and other fields, the development of 135 standards was carried out; bearing steel, gear steel, spring steel, stainless steel, tool steel, Revision of key standards for special steel series such as alloy structural steel. Focusing on “Made in China 2025″ and the development of strategic emerging industries, it has focused on the formulation of nearly 200 new material standards in areas such as high-strength automotive steel, ultra-supercritical boiler steel, and nuclear power steel, which has promoted the development of advanced new materials. Promotion and application.
(5) “Going Global” has blossomed, and the level of internationalization has improved
In recent years, with the advancement of the “Belt and Road” construction and the release of the “Guiding Opinions on Promoting International Capacity and Equipment Manufacturing Cooperation”, iron and steel enterprises have taken a solid step in “going global”, and a number of important overseas steel production bases have emerged Projects, such as the successful acquisition of Sermec Smederevo Steel Plant by Hegang Group, revitalized the century-old plant; Guangxi Shenglong Metallurgy Co., Ltd.’s 3.5 million-ton integrated steel plant project in Mazhong Kuantan Industrial Park has been successfully put into operation, and production and operation have gradually stabilized .
In order to co-ordinate the industry’s foreign investment cooperation, in March 2017, with the approval of the National Development and Reform Commission, the “China Iron and Steel International Capacity Cooperation Enterprise Alliance” was formally established. The international capacity cooperation of steel has entered a new stage, and the internationalization of the steel industry has significantly increased.
(6) High-quality development of industry human resources
Human resources are the most important resources of an enterprise. The high-quality development of the industry is inseparable from a high-quality human resources team. In the past 5 years, with the in-depth advancement of supply-side structural reforms, human resources work in the steel industry has achieved remarkable results, and high-quality development characteristics have emerged.
First, labor efficiency has been greatly improved. In the past five years, the physical labor productivity of the iron and steel industry, calculated on the basis of employees in the main industry, has increased from 504 tons per person per year to 736 tons per person per year, with a growth rate of 46.03%, the largest increase in more than ten years.
Second, the staff structure has been significantly optimized. The proportion of management personnel decreased by 0.3 percentage points, the proportion of operating personnel decreased by 0.96 percentage points, and the proportion of technical personnel increased by 1.26 percentage points.
Third, the competitiveness of human capital has been significantly improved. The increase in labor productivity continued to exceed the increase in wages. The labor cost per ton of steel in the industry dropped from 193 yuan / ton to 178 yuan / ton. The labor cost per ton of steel decreased by 15 yuan. Human capital competitiveness reversed the downward trend for many years.
In the past five years, the overall operation of the steel industry has been stable and stable, but at the same time there are concerns about stability. In particular, issues such as the rapid release of production capacity, the sharp rise in iron ore prices, and the increasing pressure on environmental protection in 2019 require urgent attention from all quarters. solve.
Post time: Feb-13-2020