Central Broadcasting Network Beijing, January 11 (Reporter Lv Hongqiao) The National Development and Reform Commission and the Ministry of Industry and Information Technology proposed a year ago to ensure that the national crude steel output in 2021 will decrease year-on-year. How is this goal accomplished? Gao Xiangming, vice president of the China Iron and Steel Association, recently revealed at the third meeting of the sixth general meeting of the China Iron and Steel Association that steel production in 2021 is expected to decrease by 35 million tons year-on-year. So, in 2022, should we continue to reduce crude steel production?
According to the statistics of China Iron and Steel Association, in the first 11 months of 2021, my country’s steel output was 946 million tons, down 2.6% year-on-year, equivalent to 908 million tons of apparent steel consumption, down 5.2% year-on-year; pig iron production was 796 million tons, down year-on-year 4.2%; steel output was 1.223 billion tons, a year-on-year increase of 1%.
Gao Xiangming predicts that the annual steel output in 2021 will be 1.03 billion tons, regarding 35 million tons less than in 2020. “Steel production decreased year-on-year, and steel inventories gradually decreased following reaching a high point in early March 2021. At the end of the year, the level was basically the same as that of the same period of the previous year. Overall, the supply and demand of steel in 2021 will be basically balanced, creating a good development for the downstream industry. Conditions.” Gao Xiangming said.
In 2022, how will the steel industry arrange the production rhythm, should we continue to reduce crude steel output? Some experts believe it will depend largely on steel demand. From the perspective of policy, the Central Economic Work Conference emphasized that “steadiness is the top priority, and progress is made while maintaining stability”, “infrastructure construction is moderately advanced” and “enhance the core competitiveness of the manufacturing industry”. Gao Xiangming judged that the market business environment of the steel industry will continue to be optimized in 2022, and it is expected that steel demand will basically remain at the level of 2021.
Gao Xiangming analyzed that the real estate industry is facing downward pressure due to policy factors such as “housing, not speculating” and “three red lines”, but the growth rate of infrastructure investment will pick up significantly; under the guidance of the policy of accelerating the construction of a strong manufacturing country, the manufacturing industry will maintain prosperity. Total steel demand is expected to be roughly the same as in 2021.
The National Development and Reform Commission and the Ministry of Industry and Information Technology recently issued the “Implementation Plan on Reinvigorating the Operation of the Industrial Economy and Promoting the High-quality Development of the Industry”, emphasizing that the supply and price of bulk raw materials should be guaranteed, the supply chain of key industrial chains should be kept smooth, and the basic market of the industrial economy should be stabilized. . As a basic industrial raw material, steel is naturally also within the scope of ensuring supply and stable prices. When talking regarding promoting the high-quality development of the steel industry in 2022, Xia Nong, the first-level inspector of the Industry Department of the National Development and Reform Commission, did not mention continuing to reduce crude steel production, but said that new steel production capacity must be strictly prohibited to effectively maintain the steel industry. Smooth operation. Xia Nong said: “It is necessary to earnestly summarize the experience of the steel industry in maintaining the balance of supply and demand in 2021, improve supply-side management, reasonably arrange the production rhythm, and effectively maintain the dynamic balance of supply and demand.”
Lv Guixin, a first-level inspector of the Raw Materials Industry Department of the Ministry of Industry and Information Technology, said that since the third quarter of 2021, the steel industry has faced the pressure of shrinking downstream demand. Real estate construction and infrastructure investment continued to decline, the growth rate of manufacturing investment narrowed year-on-year, and the growth rate of the steel industry had negative growth for five consecutive months. He said that in 2022, a number of newly built capacity replacement steel projects will be officially put into production, and the entire industry will be under increasing pressure to achieve stable operation and improve quality and efficiency. However, he also did not mention continuing to reduce crude steel output, but said that he would continue to consolidate the results of double control of production capacity and output. Lv Guixin said: “Continue to consolidate the results of double control of production capacity and output, strictly prohibit new production capacity, strictly replace production capacity, and carry out staggered production in an orderly manner in Beijing-Tianjin-Hebei and surrounding areas.”Return to Sohu to see more
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