Merger and reorganization is of great significance to the steel industry

On November 23, Chi Jingdong, vice president of China Iron and Steel Industry Association, delivered a keynote speech on "China's iron and steel industry operation trend and 2020 development trend" at the 15th Bohai Rim iron and steel market forum and the 2019 meeting of Lange Iron and steel network. Photo source of forum activity: every reporter Zhang Rui photographed Chi Jingdong said that the production and sales of iron and steel industry are booming, but the sales revenue, profits and taxes, profits of the industry itself are declining. Why does this happen? It has a lot to do with the current difficulties and problems in the steel industry and the long-term problems it faces. China steel price index (CSPI) trend chart data source: China Iron and Steel Industry Association. What are the focus issues of the current steel industry? Chi Jingdong mentioned six points: first, a new round of new production capacity; second, ultra-low emission control; third, large investment in new production capacity; fourth, safety assurance of iron ore supply; fifth, technological innovation; sixth, internationalization and globalization. "These are not only the problems we are facing at present, but also some problems we have to face in the long run." He said that forbidding new steel production capacity is a policy that steel development must adhere to. In addition, the strict and standardized measures of stopping and limiting production of iron and steel enterprises are conducive to regulating the supply of iron and steel, and the strict environmental protection standard policy is a kind of restriction and restriction on the production capacity that is not up to the standard. Of course, new production capacity is a hard constraint, which must meet the requirements of advanced environmental protection standards to allow construction. "Generally speaking, the current environmental protection policy is beneficial to the adjustment and release of the steel industry." He believed that for the steel industry, we should not be passive, but take some new measures. From the current point of view, it is necessary to carry out organized emission control in accordance with the requirements of relevant environmental protection and relevant standards, and pay close attention to the shortcomings. From a longer-term perspective, if the steel industry wants to enter a higher stage of low-carbon and green development, it cannot be limited to how to deal with it in the immediate future. Chi Jingdong said that the merger and reorganization of the iron and steel industry is of great significance for stable and sustainable development in the future. He stressed that restructuring is not the purpose of steel enterprises, but the means and measures of market competition. "The low concentration of iron and steel industry is disadvantageous to the next step of sustainable development. It is on the agenda to promote the rationalization of industrial structure and layout by increasing the concentration of industry." Chi Jingdong said that how to coordinate the development of iron and steel production capacity with the regional economy, how to develop harmoniously with the city, especially how to solve the problem of homogenization and vicious competition, may be what we need to consider in the next few years.