On July 8th, China Iron and Steel Association held a video conference on the economic operation of some iron and steel enterprises in the second quarter, to understand the production and operation of enterprises, exchange the implementation effect of the national series of bailout support fiscal and tax policies, check the industry operation situation, and study countermeasures and suggestions. He Wenbo, Party secretary and executive president of Steel Association attended the meeting and made a summary speech; Qu Xiuli, Vice President and Secretary General presided over the meeting; Vice President LUO Tiejun, Deputy Party Secretary JIANG Wei, Chief Economist Wang Yingsheng, Deputy Secretary General SHI Hongwei, Huang Dao, Lu Zhaoming, leaders of relevant business departments, and 18 steel enterprises in charge of operation attended the meeting.

On the meeting, steel association announced the first half of the iron and steel industry operation characteristics. China bao steel, anshan iron and steel, shougang, river, shagang, citic Pacific's special steel, hunan steel, baotou steel, anyang iron and steel, steel, heavens and jianlong heavy industry, cultivation, fujian three steel, shan steel, liuzhou iron &steel group co.are presented.the, jisco, hebei dedicated, be the iron and steel and other steel enterprises are introduced in the first half of the production and operation situation, to reflect the current main problems and difficulties, puts forward the countermeasures and Suggestions.

since the beginning of the year reflected from the enterprise, the complicated international situation, domestic outbreak scatter multiple supply chain, industry chain operation impeded factors, such as steel market is "supply reduction, such as weak demand, a rise in inventories, prices, rising costs, revenue, profit margins," running situation of the production and operation of an enterprise faces bigger challenge. In "word pledge, seek improvement in stability" of the CPC Central Committee and the State Council decision deployment, the iron and steel enterprises as a whole, promote reform and development of epidemic prevention and control and work hard to overcome poor supply chain logistics, the original fuel prices, environmental protection and tightly controlled hard, actively adapt to market changes, to strengthen supply, organization and coordination, vigorously promotes the authors extract synergies, overall stable and orderly production and operation, New progress has been made in our work.

The forum on the later steel market operation situation of the study, exchange views. Enterprise representatives believe that at present, global inflation pressure continues to rise, the international commodity market volatility is increasing, the high price of iron ore, especially coking coal, coke and other prices have risen sharply, the impact on steel production costs is greater, steel enterprises are more difficult to operate. Under the national goal of stable growth, with the adjustment of epidemic prevention and control policies and the promotion of the resumption of work and production, steel demand will be gradually released, and the strength of infrastructure construction will exert a certain driving effect on steel demand. However, due to the low consumption season, and the real estate, home appliances and other main steel industry consumption recovery is still uncertain, steel demand improvement or will be less than expected, steel price level is expected to follow the effective release of demand shock upward.

On the basis of listening to the current situation of enterprise operation and the analysis of the market trend in the later stage, He Wenbo expounded the six basic judgments of the current situation of the steel market, and accordingly put forward the key tasks of the industry in the near future.

The first judgment is that while the main problem in the current market lies on the steel demand side, the real solution lies on the steel supply side. Steel enterprises should have rational judgment, realistic choice and active response to the market. They should arrange production plans reasonably according to the needs of the market in order to meet the needs of users and balance supply and demand, and oppose blind production regardless of demand changes. The steel production in the past two months has significantly exceeded the market demand. At present, the most important thing is to put the industry self-discipline into action. One is to adhere to the organization of production according to the contract, do not work hard to produce and then put all the assets into inventory. Second, do not pay do not deliver, do not try to sell revenue into accounts receivable; Third, oppose unfair competition, do not below the cost line to the market dumping dumping grab market share vicious competition damage the normal market order of the industry.

The second judgment is that although the overall economic demand is still weak, the downstream industry steel consumption level did not reach the expected, but in the country is starting demand for various measures, increase the expected effect of infrastructure and construction investment relative to other areas more realistic, steel relative demand is expected to improve on the basis of the present. He Wenbo stressed that at present, we should not only pay attention to the changes in the total demand, but also pay attention to the new changes in the consumption structure of new materials, new infrastructure, new areas, new business forms and so on. In this regard, as the task of the association, first, to closely follow the downstream demand trends in various fields, timely provide dynamic market information to enterprises; Second, we should focus on the change of consumption structure to meet the demand for new consumption growth under the condition of weak aggregate; Third, to organize research and put forward feasible policy suggestions to create conditions for promoting the development of high value-added products; Fourth, we should accelerate the cross-industry cooperation represented by steel construction and make great efforts to expand the application of steel.

The third judgment is that although the economic benefits of the industry have declined significantly, the overall asset situation of the industry is still at a historically good level. At present, the debt structure of iron and steel enterprises continues to optimize, the asset-liability ratio decreased year-on-year, short-term borrowing decreased, long-term borrowing increased, enterprise costs decreased, research and development expenses continued to increase, indicating that the overall operation of the industry is relatively stable, has the ability to withstand stage risks.

The fourth judgment is that although the supply trend of raw steel fuel is generally stable with the improvement of the epidemic control situation, the impact of raw steel fuel supply on the cost will continue due to the intensification of global geopolitical conflicts and the continuous tension of energy supply. The steel industry should be fully prepared for this. In this regard, as the task of the association, the first is to strengthen the coordination of resources and energy supply, and actively coordinate the government and the upstream industry's main raw fuel supply and price stability; Second, eyes inward, in-depth organization of the industry to tap potential cost reduction, put forward with the current situation and development of targeted measures; The third is to refine the work of the project to promote the national supporting fiscal and tax policies in iron and steel enterprises landing effect; Fourth, we will continue to accelerate the implementation of various measures under the Cornerstone Plan.

The fifth judgment is structural reform industry overall strength despite the supply side, with the challenge of power and position, but still exists unbalanced development, different levels, the total demand is relatively low would lead to industry differentiation, enterprise competitiveness gap between more be innovated, differentiation and integration of parallel will appear. We will continue to speed up industrial mergers and reorganizations and create conditions for the concentration of advantageous resources in advantageous enterprises.

The sixth judgment is that although the main objectives of the industry are becoming clear, how to balance the dynamic balance under the multi-objectives, how to balance the development and low-carbon, development and security are still major industrial topics to be further explored. China's iron and steel industry is establishing and trying to adapt to the three-dimensional target system of "economy, ecology and safety", which is not easy. It needs to continue to follow the decision and deployment of the CPC Central Committee, and the whole industry should concentrate its efforts, cooperate with each other, continue to invest and promote together, so as to be a good "answerer".

He Wenbo stressed, "Looking forward to the second half of the year, a lot of difficulties, challenges are very big, but with the overall economic situation gradually stabilized, the measures to ensure growth gradually landing, the iron and steel industry in the overall economic and social development of the role will be further played, in the restructuring of demand to achieve transformation and upgrading, high-quality development. As the situation progresses, we will carry out further work, build consensus and continue to carry out relevant work in a rational, realistic and positive manner.

Participating companies said, facing tough market situation, then, should further strengthen self-discipline and coordination, reasonable arrangement of the production according to market changes, adjusting and optimizing product structure, the thorough development of the exploration, strengthen cash management, inventory management, basic management, accelerate the research of core technology, multiple measures and improving operation efficiency and management quality. At the same time, the enterprise also put forward countermeasures and suggestions from the aspects of advocating self-discipline to maintain market order, accelerating the implementation of the "cornerstone Plan", promoting industrial cross-border cooperation and the application of new materials, strengthening the work of ensuring the supply and stabilizing the price of raw fuel, and increasing the support of financial, fiscal and tax policies.