There are several tasks for private steel enterprises in 2020

We will unswervingly implement the new concept of development and accelerate the pace of high-quality development.”The downward pressure on the economy will increase next year, with steel reduction period, enterprise transformation period, environmental protection improvement period, price fluctuation period and new production release period superimposing on each other. China steel tube factories
will face greater tests and have reached a critical period of high-quality development of the steel industry.”Wang lianzhong said that private iron and steel enterprises should unswervingly implement the new development concept, always adhere to the purpose of high-quality development, not only to fully understand the new period of iron and steel industry development characteristics, but also to be ready to meet difficulties and challenges.

Second, take the initiative to control excessive production growth.Wang lianzhong said that in 2019, the steel market supply and demand to achieve a general balance, is expected to produce 995 million tons of welded steel pipe, a year-on-year growth of 67 million tons, output growth of 7.0%. Pig iron production is expected to be 800 million tons, an increase of 3.8%. Steel production is expected to be 1.2 billion tons for the year, up 94 million tons, or 9.1%. He pointed out that the problem of excessive production growth is prominent. With the technological progress and process improvement of the steel industry, including improving the smelting intensity, reducing the smelting time, increasing the proportion of scrap steel, and improving and adjusting the production process, the production technology and management level have undergone great changes. Even if the original equipment is not transformed, the production capacity of square steel pipe will increase by more than 30% on average. At the same time, more than 80 million tons of new production capacity will be put into operation next year. Keeping supply and demand in balance is a difficult task.

Wang lianzhong asked private enterprises to improve their self-restraint ability, fully recognize that the iron and steel industry is in a phase of reduced development and reduce the impulse to expand capacity. We responded positively to the requirement that new production capacity of cold rolled steel pipe be strictly prohibited, and implemented the national spirit of limiting production capacity and closing down backward production capacity. Third, further improve environmental standards. 2020 is a crucial year for winning the battle for blue skies. Maintaining a high level of environmental governance is a long-term and arduous task, requiring enterprises to maintain strict governance requirements.