Difficulties for steel pipe enterprises

The iron and steel association believes that since February, the situation of the epidemic situation gradually seriously, which has entered the epidemic prevention and control of the state of confrontation, the adverse impact on the production and operation of steel pipe suppliers gradually prominent. From the practical situation of Tianjin steel enterprises, the adverse effects and difficulties are mainly reflected in the following aspects:

First, it is difficult to resume work. In view of the current situation, not only steel smelting enterprises themselves, many upstream and downstream raw material supplies and products enterprises are unable to resume production on time or in a comprehensive manner, the industrial chain can not run smoothly such as glass curtain wall systems. Second, logistics is blocked, inventory increase. Under the influence of the epidemic, inter-provincial automobile transportation is limited, logistics is not smooth, sales channels are blocked, finished products cannot be delivered to customers on time, enterprise inventory growth is fast, capital recovery is difficult, capital chain is tight. Third, product prices are falling. Downstream enterprises generally delay the resumption of work, resulting in reduced demand, reduced orders of structural steel pipe; Product prices fell, the current average price of a ton of steel fell several hundred yuan. Fourth, orders cannot be completed on time or delivered on time, resulting in breach of contract, affecting corporate reputation and subsequent orders. Fifth, the price of upstream materials rose.

Ferroalloy, limestone, equipment, spare parts and other upstream enterprises have delayed the resumption of work, resulting in supply shortage, price rise; Ports restrict the flow of people and vehicles in and out, and iron ore purchases and shipments are tight. Sixth, raw materials, spare parts can not timely supply. Due to the traffic and logistics obstacles, raw fuel auxiliary materials and spare parts cannot be delivered in time, which affects the production capacity of curtain wall building and brings many difficulties to equipment maintenance, technical innovation and project reconstruction. Seventh, the enterprise staff can not return to the post on time, resulting in labor shortage and labor cost increase. Eight is the export is blocked, affecting subsequent orders. Due to insufficient port staff, delayed shipment, and many foreign customers’ concerns and concerns about the impact of the epidemic, the timely delivery of export orders has been affected, as well as the potential impact on subsequent export orders. Ninth, the efficiency declines. It is expected that before or even after the end of the epidemic, the costs of enterprises will rise and eventually lead to the decline in economic benefits of enterprises.