Costs and prices will be the focus in 2011 the steel industry

In 2010, China's steel production costs raised, economic benefit decline, the steel industry is facing tough living environment. In order to the analysis of production and management situation of Iron and steel industry in 2011, the Ministry of Industry and Information Technology Division and the raw materials and China Iron and Steel Industry Association will held the "2011 Symposium of steel production and operation targets” on December 30, 2010 in Beijing, Ministry of Industry and Materials Division inspectors Jia Yinsong, honorary president of China Iron and Steel Industry Association Wu Xichun attended the meeting.

Iron and steel industry secretary general Shan shanghua said in 2010 steel production and operation encountered unprecedented difficulties, since the original fuel prices rising dramatically, iron and steel enterprise sales margins in the country's lowest level of industrial areas, less than half the average national industrial . 2010 is expected to total profits of key steel enterprises is about 85 billion yuan, of which investment income of nearly 80 billion yuan, profits of the other main steel production only 770 billion yuan, while Baoshan Iron and Steel had a profit of 24 billion yuan, accounting for large and medium steel companies nearly one-third, if the mines less profitable steel company, many are actually the main iron and steel production at a loss.

Shan Shang-hua, 2011, steel demand of the market is not optimistic, to maintain the growth rate in 2010 is very difficult. In 2011, iron ore, coking coal and other raw material and fuel prices will remain high, production and operation will be more difficult.

Jia Yinsong pointed out that the economic situation in 2011, which will be complex and difficult year, economic development, will face inflation, employment, foreign trade, investment and other issues. In 2011, the Secretary of raw materials in the steel industry will focus on promoting the six areas. First, implement the "State Council on further increase energy conservation efforts to speed up restructuring the steel industry a number of opinions" (Guo Ban Fa [2010] 34) in the spirit of the document. Continue to do, "second Five Year Plan" prepared. The second is to promote the steel industry mergers and acquisitions work. Third, continue to promote the implementation of the iron and steel production and operation specifications. Fourth, continue to intensify efforts to work out backward. Fifth, the strategic resources of iron ore to do security work. Sixth, continue to do analytical work on economic operation of the steel industry. Overall, the steel industries to seize market opportunities, change the mode of growth, accelerate structural adjustment, and promote industrial upgrading.

  Wu Xichun expects full-year 2010 crude steel production will be 6.3 million tons, an increase of 10.9%. He said that in 2011, the steel industry to focus on several issues: First, the price of the steel market. 2011, plate and strip will increase the degree of excess, we should focus on the price of plate and sheet. Second, iron ore, coking coal and the freight rate will increase the price shock, the risk would be great. Third, change the development mode, the main attention to the development of a real transfer of production from the expansion to build build up of upstream and downstream industry chain, and to the variety, quality, procurement, sales, management and capital operation to be effective against the rising cost of production.

  Participants also discussed the 2011 production target and the main phase, with production capacity situation; steel exports situation analysis and export arrangements in 2011; the original fuel supply and marketing problems and measures; production and operation of the main problems encountered industrial restructuring measures and suggestions

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