Private iron and steel development quality has been improved

The basic orientation of enterprise production, operation and management is good. In the further deepening of structural contradictions in the adjustment of private steel pipe suppliers overall view and market concept is becoming stronger and stronger. Steel production is expected to reach 600 million tons in 2019, up 9.69 percent year on year. Steel output was 860 million tons, up 15.18 percent year on year. Since entering the fourth quarter, private steel ADAPTS timely organizes and carries out equipment maintenance and other work, and actively reduces production.It is the first time that the output of steel industry in China has negative growth.

From January to October 2019, private steel enterprises produced 506 million tons of steel, up 11.14% year on year, accounting for 61.04% of the country’s steel output. output of steel tube China was 380 million tons, an increase of 8.3% in the same ratio, accounting for 56.3% of China’s iron output. Steel output was 705 million tons, up 13.48 percent year on year, accounting for 70 percent of the country’s steel. The production of private enterprises has shown a stable and rising situation.The growth rate of steel, iron and steel production was moderate, 3.74, 2.9 and 3.68 percentage points higher than the national average growth rate respectively.

Economic benefit tends to reasonable range. Faced with the adverse factors such as the increase in the price of imported iron ore and the decline in the price of steel products in 2019, iron and steel enterprises pay more attention to enterprise management, reduce costs, improve production efficiency and reverse the situation of profit decline.Taking shanxi jianbang as an example, the labor productivity of mild steel tube has nearly doubled in recent years, with the annual output of 1500 tons of steel per capita.

According to statistical analysis, from January to October in 2019, the rising price of imported iron ore plants will affect more than 50 billion yuan, while the falling price of steel will affect more than 60 billion yuan.In the same period, the profits of private hollow section manufacturers were reduced by only 50 billion yuan to 138 billion yuan, and the cost was reduced by more than 60 billion yuan by improving the management level. Despite a 40.0% drop in profit compared with 2018, the profit margin on sales is still above 6%, higher than the national average of 5.85%.
It is expected to reach 240.5 billion yuan in 2019. According to the chamber of commerce, the annual profit of private steel enterprises is estimated to be 158 billion yuan, accounting for 66% of the total profit of the steel industry.