Performance of steel Enterprises

In the first half of this year, China’s GDP grew 12.7 percent year-on-year, and downstream steel demand continued to be high. Thanks to the pull of the market, coupled with the rise in iron ore prices, steel prices have risen, steel production of ERW pipe and sales are booming, and profits have soared. But markets always have ups and downs. With the economic growth gradually resuming normal, the demand for iron and steel slows down, and the distribution pattern of the upstream and downstream interests of the industrial chain needs to be balanced. Steel prices cannot rise without limit, and the pressure on the steel industry continue to improve efficiency in the second half of the year is increasing. At the same time, some deep-seated contradictions in our steel industry have not been solved, and the foundation of the industry stability is not strong. People can’t help but ask, how is the steel industry doing?

The key to the answer lies in what the steel industry does itself.
On the one hand, good times do not come easily, and steel pipe supplier should cherish them. Our country is the largest iron and steel producer in the world, with steel output accounting for more than half of the world total. The steel industry has suffered from massive overcapacity and suffered an industry-wide loss in 2015. It is the country’s vigorous supply-side structural reform, efforts to reduce excess steel capacity of more than 150 million tons and the closure of 140 million tons of floor steel capacity, that has reversed the imbalance between supply and demand.

This year, the relevant departments have organized a nationwide steel overcapacity reduction “look back” and crude steel output reduction work, continue to consolidate and improve the effectiveness of relevant work. As the authorities, iron and steel enterprises should keep a clear head, grasp the policy orientation, rationally view the market situation, scientific management, effectively abandon the extensive mode of growth based on volume, do a good job in the connection of production and sales of round steel pipe, pay attention to the balance between supply and demand, reduce costs and increase efficiency.

On the other hand, good days come from creation, the industry must be reborn. Our economy has shifted from a stage of high-speed growth to a stage of high-quality development, and the steel industry needs to be transformed from large to strong. From the law of development, with the change of the economic development pattern, the scale of steel consumption of rectangular hollow section in our country will tend to decline, and the requirements for product quality, technical content and other aspects of the industry face hard constraints such as resources, energy and environment. The steel industry has both opportunities and challenges for innovative development and low-carbon development.