In 2020, the mixed reform of iron and steel industry is expected to increase

According to the data of all China Metallurgical chamber of Commerce, the supply and demand of China's steel market will basically balance in 2019. It is estimated that the annual output of steel will be 995 million tons, an increase of 67 million tons over 2018, an increase of 7%; the output of pig iron is expected to be 800 million tons, an increase of 3.8%; the annual output of steel is expected to be 1.2 billion tons, an increase of 9.1%. Wang Lianzhong, Executive Deputy Secretary General of the all Federation metallurgical chamber of Commerce, said that in the next step, the iron and steel industry will further make full use of market and legal means to promote the merger and reorganization of iron and steel enterprises, improve the industrial concentration, intensify the reform of mixed ownership, and enhance the market vitality and international competitiveness of iron and steel enterprises. From the perspective of private enterprises, from January to October 2019, private steel enterprises produced 506 million tons of steel, an increase of 11.14% year-on-year, accounting for 61.04% of the national steel production; pig iron production was 380 million tons, an increase of 8.3% year-on-year, accounting for 56.3% of the national iron production; steel production was 705 million tons, an increase of 13.48% year-on-year, accounting for 70% of the national steel production.

The production of private enterprises presents a situation of stability in change, rise in stability and control in rise. In this context, it is estimated that in 2019, the annual steel output of private steel enterprises will be about 600 million tons, an increase of 9.69% year-on-year, accounting for 60.3% of the national total. Steel production reached 860 million tons, up 15.18% year on year. From the perspective of industry profits, it is estimated that the industry will achieve a profit of 240.5 billion yuan in 2019. Among them, it is estimated that private steel enterprises will realize a profit of 158 billion yuan in the whole year, accounting for 66% of the total profit of the whole steel industry. In terms of profit per ton of steel, Shandong Shiheng special steel, Hebei Puyang steel and Jiangxi Fangda special steel have the highest profit of 995 yuan, 690 yuan and 613 yuan respectively. Wang Lianzhong said that due to the adverse factors such as the increase in the price of imported iron ore and the decrease in the price of iron and steel products in 2019, the profit of steel enterprises has declined by nearly 40%, but fundamentally, it is difficult for the industry to support high profit rate for a long time, and the economic benefits tend to a reasonable range.