China Iron and Steel Industry Development Report (2016 Edition)

China Iron and Steel Industry Development Report (2016 Edition)

China's iron and steel industry to meet domestic demand for the purpose of the rapid development of China's economy and development, strong support for national construction. From 2011 to 2015, it produced 3.8 billion tons of steel, meeting the huge demand for steel as China's GDP grew by 65% and fixed asset investment increased by 128%. With the transformation of China's economy from high-speed to medium-high growth and the optimization of its economic structure, China's steel industry will further play the decisive role of the market in resource allocation, constantly improve the market order of fair competition, strive to resolve excess capacity, and continue to promote reform and innovation, transformation and upgrading, and green development.

First, about steel output

In 2015, the Chinese mainland produced 804 million tons of crude steel, 19.1798 million tons less than the previous year, down 2.33 percent. In 2015, the output of old wood decreased by 3.60%, the output of pipe material increased by 10.98%, and the output of sheet and strip material increased by 2.50%, among which the cold rolled sheet increased by 6.49% and the coated sheet by 2.67%. The output of crude steel has decreased, the output of some high-end products has increased, and the product mix of China's steel industry has been optimized.

In 2015, 66 major steel-producing countries and regions produced 1.6 billion tons of crude steel, down 2.86 percent from the previous year. Crude steel output in most of the major steel-producing countries declined, with only a few countries increasing, as shown in the table below.

Ii. Import and export

In 2015, China exported 112 million tons of steel, an increase of 19.9 percent over the previous year. Imported steel 12.78 million tons, down 11.4% from the previous year; Net exports amounted to 103 million tons of crude steel, accounting for 12.81 percent of China's crude steel output.

China imported 953 million tons of iron ore in 2015, up 2.2 percent from the previous year. 607 million tons of iron ore were imported from Australia, up 10.76 percent year on year. It imported 192 million tons of iron ore from Brazil, up 12.1 percent year on year. Iron ore imports from South Africa reached 45.3783 million tons, up 4.06 percent year on year. Iron ore imports from Australia and Brazil accounted for 83.85% of total imports in 2015.

Iii. Market demand

In 2015, the apparent consumption of crude steel in Mainland China was 704 million tons, accounting for 43.2% of the global total, and China remains the world's largest steel consumption market. The regional imbalance of China's economy and the stage characteristics of the current development determine that the domestic market demand will maintain a basically stable and high total demand, and the market prospect is still considerable.

Iv. Industry benefits

Global steel prices fell in 2015. At the end of December, the CRU International steel composite price index fell 32.4% year on year, with the long timber index down 28.5% and the sheet metal index down 34.6%. The CSPI China steel price index fell 32.16% year on year, with the long timber index down 31.18% and the sheet metal index down 33.27%. CRU international steel composite price index fell higher than CSPI China steel price index. Affected by the sharp drop in steel prices, The economic benefits of China's steel industry have declined. In 2015, China's iron and steel industry (including ferrous metal mining and selection industry and ferrous metal smelting and rolling industry) achieved sales revenue of 7.2 trillion yuan, down 13.9 percent from the previous year, and total profit of 97.19 billion yuan, down 60 percent from the previous year.

5. On addressing overcapacity

Steel overcapacity is a global problem. According to data from the World Steel Association, the global crude steel capacity utilization rate in 2015 was 69.7%. At the end of 2014, China's crude steel production capacity was about 1.13 billion tons, and the capacity utilization rate was 71.2% based on the 2015 output, basically similar to the global situation.

The Chinese government, steel industry and enterprises have worked actively to reduce steel overcapacity and achieved remarkable results. During the 12th Five-Year Plan period, more than 90 million tons of outdated steel production capacity have been shut down. Fixed asset investment in iron and steel industry declined for two consecutive years. In 2015, fixed asset investment in ferrous metal smelting and rolling processing industry decreased by 11% year on year. Market competition and environmental pressure have prompted the withdrawal of a number of steel capacity, including enterprises of all types of ownership.

In February 2016, the Chinese government issued the "Opinions on Reducing Excess Capacity in the Steel Industry and Realizing Development", which planned to reduce steel capacity by another 100 million to 150 million tons in the next five years and put forward a series of specific measures. China will learn from the experience of developed countries in Europe and the United States, work hard to reduce excess capacity, properly deal with the resettlement of workers and other issues, and rebalance supply and demand as soon as possible.

6. Technical progress

Iron and steel industry to serve economic development and downstream industry demand for the purpose of continuous optimization of product structure, improve product quality. On the one hand, the overall level of construction, shipbuilding, automobile and other large area wide steel products has been improved, the proportion of high-strength steel bars and steel structures has increased, the pilot provinces and cities of 400 mpa and above the use of high-strength steel bars has reached 70% to 80%, the proportion of high-strength shipbuilding board has exceeded 50%. On the other hand, a large number of high-tech and high value-added products have been successfully developed, and the performance of oriented silicon steel plate, magnetic yoke magnetic pole steel plate and power plant volute steel plate used in large-scale hydropower, thermal power and nuclear power equipment manufacturing has reached the leading level. Three series of nuclear steel used in nuclear reactor containment, nuclear island key equipment and nuclear power structural components have been applied in CAP1400, the world's first third-generation nuclear power project. High-speed railway bogie frame steel, 350 km/h high-speed wheel pair steel will enter the trial stage; Gaoqiang Steel, the third-generation automobile, made its global debut.

7. Energy conservation and environmental protection

China iron and steel industry according to the requirements of green development, increase the capital, talent, technology research and development and so on various aspects into, in a new generation of recycled steel manufacturing process, green manufacturing, environmental management and so on has carried on the beneficial exploration, emerge a batch of advanced enterprise of energy conservation and environmental protection, river tangsteel, taigang, baosteel and other steel enterprises become the iron and steel industry in the development of green card. The environmental protection work of the enterprise has changed from simple environmental management to clean production and green manufacturing under the premise of integrated optimization of energy saving and environmental protection technology and efficient utilization of resources and energy.

The implementation of the new environmental protection Law in 2015 has put forward higher requirements and stricter standards for the steel industry. The steel industry has made significant progress in energy conservation and emission reduction by increasing input, promoting technological upgrading and comprehensive promotion and application. The comprehensive energy consumption per ton of steel has decreased year by year, and the emission of major pollutants per ton of steel has decreased year by year. The total energy consumption and air pollutant emission of China's iron and steel industry have entered a declining stage. In 2015, compared with 2010, the average energy consumption of major members of China Iron and Steel Association decreased from 605 kg standard coal to 572 kg standard coal, reaching the energy-saving planning target of 580 kg standard coal ahead of schedule. New water consumption per ton of steel decreased from 4.1 cubic meters to 3.25 cubic meters, achieving the water-saving target of 4 cubic meters ahead of schedule. Sulfur dioxide emissions per ton of steel fell from 1.63 kg to 0.74 kg, exceeding the pollution prevention target of 1.0 kg. Chemical oxygen demand per ton of steel dropped from 70 grams to 22 grams, leading to achieve the control target.

Viii. On ownership structure

Both state-owned economy and private economy are important components of China's market economy system and important forces to promote the development of national economy. In recent years, with the rapid development of Chinese economy, state-owned economy and private economy have promoted and developed together. This aspect is more prominent in the iron and steel industry. In 2003, China's private steel production accounted for only 5% of the country's total crude steel output. At present private iron and steel enterprises in the number of enterprises has occupied an absolute advantage in crude steel output is also more than half. Shagang, Jianlong Heavy Industry, Rizhao Iron and Steel, Hebei Jingye, Fangda Iron and Steel and other large numbers of 10 million tons of private steel enterprises have emerged.

In 2014, crude steel production capacity in Mainland China was 1.13 billion tons, of which state-owned enterprises accounted for 44.28% and private enterprises accounted for 55.72%. Crude steel production reached 823 million tons, of which 49.64% were state-owned enterprises and 50.36% were private enterprises. In addition, with the development of asset securitization, 34 listed steel companies in China have become public enterprises. In 2015, the total crude steel output of these 34 listed companies was 391 million tons, accounting for 48.69 percent of the national crude steel output.

Ix. Policy on steel trade

China does not encourage large-scale export of steel products. On the contrary, it has taken a series of practical measures to control the export of steel products, such as levying export tariffs on some steel products and taking the initiative to reduce the export rebate rate of steel products. In recent years, China's steel exports have increased, mainly due to the recovery of the global economy, the rising demand in the international steel market, and the improvement of the international competitiveness of Chinese steel.

In recent years, international steel trade frictions have increased. The Chinese government and steel industry attach great importance to this, actively carry out industry self-discipline, standardize export order, pay close attention to export to key regions, actively strengthen communication with governments, associations and enterprises of export destinations, and strive to maintain regional market stability. China's steel industry is willing to resolve trade frictions through win-win cooperation, work with international counterparts to jointly safeguard the normal international steel trade order, and firmly oppose trade protectionism and politicization of steel trade issues.

X. On international exchanges and cooperation

China's iron and steel industry is a part of the world's iron and steel industry, the development and growth of China's iron and steel industry benefits from the rapid growth of the Chinese market, but also inseparable from the support and help of international counterparts. Under the new situation, China's steel industry will further open up, strengthen exchanges with international industry organizations, and expand cooperation with international steel counterparts, raw fuel suppliers and metallurgical technology and equipment suppliers. At the same time, we sincerely welcome international steel enterprises and investors with advanced technology and management experience to actively participate in the structural adjustment, transformation and upgrading of China's steel industry.

Cisa has signed 16 bilateral exchange agreements and memoranda of cooperation with steel industry associations of 13 countries and regions. Holds regular China asean steel exchange, central iron and steel informal dialogue, China and the United States steel informal dialogue, China and Japan steel dialogue, China and South Korea steel officer officer people dialogue, China and India steel high-level dialogue, the steel industry energy conservation and environmental protection advanced technology expert seminar, steel statistics exchange between China and Japan, China and South Korea steel statistical communication meeting and the association of south-east Asian nations (asean), Eurasian regions such as iron and steel enterprise senior management personnel training Class.

Actively participate in the activities of the World Steel Association and the OECD Steel Committee; Attend international conferences organized by sister associations and industry information organizations such as ASEAN Iron and Steel Association, Korea Iron and Steel Association, Brazilian Iron and Steel Association, International Recycling Bureau, etc. Organizing Chinese enterprises to participate in international exhibitions such as Germany International Metallurgical Exhibition, Germany International Pipe Exhibition, Steel Industry Exhibition of the United States, Metallurgical Exhibition of India, Metallurgical Exhibition of Russia, Metallurgical Exhibition of Brazil, And Steel Industry Exhibition of Egypt.

Sponsored by the China international conference on steel, international symposium on Chinese steel raw materials, steel market and trade, international conference on China's coking technology and coke market international convention, international symposium on China metal recycling application, fire-proof material production and application of the international convention, China international conference on stainless steel, China metallurgical international exhibition, exhibition of China international steel tubes, China International Stainless Steel Exhibition and other international conferences and exhibitions.