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This year is the first year of the “14th Five-Year Plan”. Hot issues such as carbon peaking, carbon neutrality, decapacity “looking back”, capacity replacement, output reduction, and resource protection are of great concern to the entire industry. the steel industry was operating well in the first half of the year. The production and sales of the company were booming, the efficiency was improved, green development, intelligent manufacturing, technological innovation, etc. New progress has been made, providing important support for actively meeting the growth of downstream industry demand and promoting the national economy to achieve a good start to the “14th Five-Year Plan”.
According to data from the China Iron and Steel Association, the steel industry in the first half of the year responded to the strong growth in steel demand, and the overall supply and demand were relatively balanced. The national pig iron, crude steel and steel output were 456 million tons, 563 million tons and 698 million tons, respectively, an increase of 4.0% year-on-year. 11.8% and 13.9%; the apparent consumption of crude steel is expected to be equivalent to 537 million tons, a year-on-year increase of 10.2%. With the changes in the situation of overseas epidemic prevention and control and the recovery of international market demand, the export volume of steel products has increased significantly. According to customs statistics, my country exported 37.38 million tons of steel products in the first half of the year, a year-on-year increase of 30.2%.
The development of China’s iron and steel industry has five major characteristics that support the rapid development of the country’s economy, is a typical technology-intensive industry, makes the world a better place, is the most globally competitive industry in China, and will lead the development of the world’s iron and steel industry for a long time. So far, China’s iron and steel industry Already have a good scale, good prices, good products, good brands, good services, “5G” competitiveness, implement the most stringent environmental emission standards in the world, are leading the green revolution of world steel, and are striving to build a global steel industry low Demonstration of carbon development will evolve to a low-carbon stage in a high-quality period.
standing at the new historical starting point of the “14th Five-Year Plan”, under the background of implementing new development concepts and building a new development pattern, as the country’s economy and society enters a new stage of high-quality development, my country’s steel industry has embarked on a new journey. Under the leadership of low-carbon, digital drive, technological revolution, and green collaboration will be the three major trends to form a new balance of supply and demand, promote new technological progress, create a new industrial pattern, build a safe supply chain, and build a prosperous ecosystem .
In order to promote the transformation and upgrading and high-quality development of the steel industry, with the approval of the State Council, the Tariff Commission of the State Council issued an announcement on July 29 that from August 1 this year, the export tariffs of ferrochrome and high-purity pig iron will be appropriately increased, and they will be implemented after adjustments. 40% and 20% export tax rates. In addition, according to a joint announcement issued by the Ministry of Finance and the State Administration of Taxation, starting from August 1, 2021, my country will also cancel export tax rebates for 23 steel products including rails. This is the second time my country has adjusted steel tariffs since this year. In the first adjustment of tariffs in May, the export tax rebates of 23 tax numbers covering major high value-added products were retained, and this time they were all cancelled.
Recently, many provinces in China have announced the production of crude steel. If the country’s crude steel production does not increase year-on-year this year, the output will fall more in the second half of the year. The scope of the cancellation of export tax rebates will be expanded, which will weaken the price competition of related steel products exports. Increasing the export tariffs of ferrochrome and high-purity pig iron will affect the export orders of relevant companies. The policy purpose is to give priority to meeting domestic demand and help improve the capacity of domestic steel resources.
The overall overseas steel market has shown signs of inflection. The expansion of steel demand has slowed down, the gap between supply and demand in the market has narrowed, and the upward momentum of prices is insufficient. With the adjustment of overseas markets and the rebound of the domestic market, the price advantage of my country’s steel exports has gradually lost, and export orders have fallen. At the same time, the scope of the cancellation of export tax rebates has expanded, which will further restrain steel exports.
Reducing crude steel production capacity is an important measure to implement my country’s carbon peak and carbon neutral goals. At the aforementioned meeting of the China Iron and Steel Industry Association, the relevant person in charge of the National Development and Reform Commission stated that the National Development and Reform Commission and other departments organized 9 inspection teams to carry out on-site inspections in 29 provinces, autonomous regions and municipalities. The relevant local enterprises will be asked for the problems found in the inspections. Seriously rectify and reform in accordance with laws and regulations, and severely deal with serious problems that are not in place.
At present, the global industrial layout is undergoing major adjustment, and the risk of iron ore resource protection is increasing.The traditional steel market has entered a stable period, steel prices rise without the long-term support of fundamental factors;There are strong constraints on resource, energy and environmental protection, and the task of carbon peak and carbon neutrality is arduous.New challenges to the steel industry.