Industrial chain cooperation

In the recent China Iron and Steel Association held the third quarter of the economic operation of part of the iron and steel enterprises forum, steel association Party Committee secretary, executive chairman pointed out that the iron and steel industry should go all out to fulfill the industry’s mission of ensuring supply, and do their best to achieve good annual business performance of the whole industry; We should pay close attention to the changes in the downstream consumption trend of steel, which is the basis for production adjustment and the basis for determining the next production capacity. It can be seen that in the face of the current severe situation of declining market demand, steel pipe manufacturers should control and adjust production according to market demand changes to ensure that the whole year to achieve better profit targets.

For the steel industry, maintaining the balance between supply and demand, ensuring stable supply and price, and adjusting output according to market demand are the basic requirements to maintain the stable and healthy development of the market, and “one size fits all” pressure or limit production is not desirable. In fact, since the beginning of this year, the pressure of production reduction of round steel pipe faced by the steel industry has objectively helped iron and steel enterprises avoid excessive market competition under the situation of a sharp decline in market demand, so that the industry as a whole has maintained a rare high profit in history.

No matter from the diversification of fixed asset investment caused by China’s economic transformation and development, the weakening trend of steel strength, or the energy crisis caused by the global transmission through the supply chain, and the continuation of the high volatility of commodity prices under the situation of global inflation, in the fourth quarter of this year, China’s fixed asset investment and economic growth are difficult to get rid of the downward pressure. This determines the fourth quarter of steel prices are also facing downward pressure. Therefore, iron and steel enterprises should be demand-oriented, in order to maintain reasonable profits for the purpose, through strict control of square steel pipe, maintain market order. Steel trade enterprises should also grasp the development opportunities, deepen the reform ideas, break the topic forward.

In the face of the fourth quarter steel market supply and demand are weak grim situation, we should see that the recent total value of import and export of our country foreign trade to maintain growth, especially ships, containers, construction machinery and other contracts continue to increase, to provide the opportunity for the domestic market demand growth of the China hollow section tube. On the one hand, this reflects the strong competitiveness of our country’s manufacturing industry in the international market, on the other hand, it reflects that in the process of world economic recovery, international trade and Marine transportation develop rapidly, and more and more countries pay attention to improving industrial production and manufacturing capacity and developing infrastructure construction. For iron and steel enterprises, from the perspective of industrial chain cooperation, we should improve product quality and competitiveness of new varieties, strengthen cooperation with the upstream and downstream industrial chain, and continuously improve product market share.