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Situation analysis of steel industry in 2021

Xiao Yaqing, Minister of the Ministry of industry and information technology of the people’s Republic of China, recently proposed that the output of crude steel should be firmly reduced to ensure that the output in 2021 will drop year on year. We understand that the reduction of steel output should be considered in the following three aspects: first, send a signal to the steel industry, and take action from now on to achieve the goals of “carbon peaking” and “carbon neutralization”; Second, reduce the expectation of dependence on imported iron ore from the demand side; The third is to guide iron and steel enterprises to high quality development and improve competitiveness.
From the perspective of China’s steel supply structure in 2020, in addition to the growth of domestic steel output, the import of steel also maintained a significant growth, especially the import of billet increased nearly five times. In 2021 or even a longer period of time, even if there is a periodic imbalance between production and demand, the market will effectively meet the domestic market demand through self-regulation of import and inventory links.
2021 is the first year of the 14th five year plan, and it is also a year of special importance in the process of China’s modernization. The iron and steel industry should continue to focus on the fundamental task of comprehensively improving the industrial foundation and industrial chain level, adhere to the two development themes of green development and intelligent manufacturing, focus on solving the three pain points of the industry, control capacity expansion, promote industrial concentration, ensure resource security, continue to promote the internationalization process, and make a steady and good start for the realization of low-carbon, green and high-quality development. Build the big data center of iron and steel industry, explore the data element sharing mechanism, and improve the ability of data resource management and service; Relying on leading enterprises to promote multi base collaborative manufacturing, optimize the whole industry chain under the framework of industrial Internet, promote information sharing, resource sharing, design sharing and production sharing between upstream and downstream, build a modern, digital and lean “intelligent manufacturing factory” in multiple dimensions, and form a new type of intelligent manufacturing of iron and steel

Post time: Jun-28-2021