Steel companies should plan to reduce emissions and reduce costs in advance

On November 23, the 2019 (eighth) China Steel Technology and Economy High-end Forum hosted by the Metallurgical Industry Planning Research Institute and the Chinese Metal Society was held in Beijing. Since the beginning of this year, the steel industry has maintained a steady development trend, but the sharp decline in profits has caused industry concerns. This forum focused on the issue of declining industry efficiency.

Data show that from January to October, the national crude steel output was 829 million tons, a year-on-year increase of 7.4%; the steel output was 1.01 billion tons, a year-on-year increase of 9.8%. In the case of a substantial increase in production, the profits of China Iron and Steel Association member companies in the first three quarters fell by 32% year-on-year, and the sales profit margin fell by 3 percentage points.

President of the Metallurgical Industry Planning and Research Institute, Li Xinchuang, pointed out that domestic demand has created a better market environment for the iron and steel industry. In the first 10 months, China’s steel consumption reached 742 million tons, a year-on-year increase of 6.68%. But at the same time, the steel industry is also facing many challenges and difficulties such as the rapid release of production capacity, the rise of international trade protectionism, and rising corporate costs.

At a deeper level, the steel industry’s increase in output but no efficiency reflects the reality of a large but not strong industry. Deep-seated contradictions, such as weak independent innovation capabilities, low levels of green development, low industrial concentration, and generally low product added value, remain to be seen. Further cracking, the importance of reform and innovation has become more prominent.

At present, the leading steel companies have made new progress in promoting restructuring and integration. For example, China Baowu integrated Maanshan Iron and Steel and exerted scale and synergy.

More steel companies are based on their own hard work to speed up the transfer and adjust the structure. Zhang Liuyu, vice president of Jiangsu Yonggang Group Co., Ltd., said that Yonggang implemented classified management according to General Steel, Special Steel and Yougang, which has reduced costs by 760 million yuan this year.

It is worth noting that this year’s increase in the output of the steel industry in China does not increase efficiency, which is directly related to the erosion of profits such as the cost of raw fuels such as the surge in the price of imported iron ore. However, the increasingly abundant domestic scrap resources also bring hope to the industry. In 2018, China’s scrap steel supply was about 200 million tons, an increase of 10%; it is expected that in 2025, scrap steel supply will exceed 250 million tons.

Industry experts believe that the development of electric furnace short processes using scrap steel as raw materials can significantly improve the steel industry’s production structure and resource structure, and reduce energy consumption. Data show that for each 10% increase in the proportion of electric furnace steel, the corresponding energy consumption per ton of steel can be reduced by 50 kg of standard coal, and carbon dioxide emissions per ton of steel can be reduced by 0.14 tons. According to China’s annual steel output of 800 million tons, the country can reduce energy consumption by 40 million tons of standard coal and carbon dioxide emissions by 112 million tons each year. Unfortunately, at present, the contribution of scrap steel to the development of electric furnace short process in China is not significant.

“The situation of compulsory reduction of carbon dioxide will inevitably come, which will force steel companies to develop and apply low-carbon technologies.” Zhao Pei, executive vice chairman of the Chinese Metal Society, pointed out that the Chinese government has promised to reach peak CO2 emissions around 2030 And strive to achieve as soon as possible, unit GDP emissions will be 60% to 65% lower than in 2005. Therefore, under the premise of total volume control, the iron and steel industry must develop the electric furnace steelmaking process in a timely, orderly and scientific manner, and steel companies should make arrangements in advance.

“In the future, only companies with advanced management concepts and efficient control models can gain a firm foothold in the competition and achieve development.” Miao Changxing, inspector of the Industrial Policy Department of the Ministry of Industry and Information Technology, pointed out that steel companies must innovate their management systems and adapt to modern enterprises as soon as possible Requirements, adapt to the requirements of the new generation of information technology development, and seek benefits from management.

Participating experts believe that after 70 years of development, from the aspects of product independent supply capacity, technical equipment level, steel export competitive advantage, and employee quality, etc., the comprehensive strength of China’s steel industry is already in the world * square matrix, and it is expected to be the first to enter the world. One of the leading industries in manufacturing power.

“Standing at a new historical starting point, China Steel’s future development will present new features such as quality improvement, technology upgrades, green development, layout optimization, and process optimization.” Li Xinchuang pointed out.

Post time: Nov-28-2019
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