Crude steel output exceeds 1 billion tons

  • Friday, January 29, 2021
  • Source:ferro-alloys.com

  • Keywords:crude steel,output
[Fellow]In 2020, China's crude steel output will exceed 1 billion tons, effectively meeting the "steel" needs of national economic development

[Ferro-Alloys.com

  In 2020, China's crude steel output will exceed 1 billion tons, effectively meeting the "steel" needs of national economic development.  In 2021, the Ministry of industry and information technology will vigorously implement the industrial low-carbon action and green manufacturing project around the target nodes of carbon peak and carbon neutralization. Meanwhile, it will further intensify efforts to firmly reduce the output of crude steel, and put forward higher requirements for the high-quality development of the steel industry.

 
  In the future, how can the iron and steel industry balance the rising demand with the decreasing output? How to strengthen the guarantee of iron ore (987, - 24.00, - 2.38%) and other raw materials? How to deal with the challenges of carbon peaking, carbon neutralization and constraint?
 
  Balance production and demand: consumption and import "+", output and inventory "+"
 
  According to the data of China Steel Association, in 2020, the output of crude steel in China will be 1.053 billion tons, with a year-on-year growth of 5.2%; the apparent consumption of crude steel in China will increase by 9%. The rapid recovery of downstream industries and the new high of steel consumption promote the continuous growth of steel production.
 
  "China's economy continues to maintain a steady and progressive development trend, which will provide strong support for steel demand." Qu Xiuli, vice president and Secretary General of China Iron and Steel Industry Association, said at the information conference of China Iron and Steel Association on the 27th that China's steel demand is expected to maintain a small growth in 2021.
 
  The Ministry of industry and information technology has clearly pointed out that in 2021, it is necessary to resolutely reduce the output of crude steel to ensure that the output of crude steel will decline year on year. How to balance the increase of demand and decrease of output in iron and steel industry?
 
  Qu Xiuli said that with the growth of domestic steel market demand, it is expected that the export of China's steel products will decline and the import growth will continue.
 
  "In 2021 or even longer, even if there is a periodic imbalance between production and demand, the market will effectively meet the domestic market demand through self-regulation of import and inventory." Luo Tiejun, vice president of China Iron and Steel Industry Association, said that it is necessary to fully understand and grasp the development requirements of increasing domestic and international double cycle mutual promotion and industry capacity control and output limit, change the traditional concept of self-sufficiency, and actively respond to the change of China's steel supply pattern.
 
  Risk prevention: raw material guarantee "+", external dependence "-"
 
  Since the fourth quarter of 2020, the price of imported iron ore has risen rapidly. According to the monitoring of CISA, China's iron ore price index (ciopi) reached 62%, and the price of imported ore reached the highest of 171.6 US dollars per ton on January 18, 2021, a new high in nearly nine years. How to strengthen the guarantee of iron ore and other raw materials? What is the situation of domestic and foreign mine construction?
  
  "At present, the price of iron ore and other raw materials is at a historical high, which will greatly stimulate the resumption of production capacity and the expansion of new projects of Mines affected by the epidemic last year." Luo Tiejun said that the supply and demand relationship of iron ore in 2021 is expected to be better than that in 2020.
  
  "The import of recycled iron and steel raw materials was liberalized on January 1, and the No. 1 and No. 2 mining areas of Simandou iron mine in Africa are under active construction." Luo Tiejun said that the iron and steel industry should make full use of the domestic and international markets, and accelerate the solution of iron ore guarantee related problems from increasing iron supply, improving pricing mechanism, and improving futures market rules.
 
  Although the import of recycled iron and steel raw materials has been liberalized, the international market price has risen, and there are still difficulties in the recycling of domestic scrap resources. Luo Tiejun said that it is necessary for the state to issue corresponding industrial and fiscal policies to promote the healthy development of domestic scrap industry towards standardization, industrialization and standardization, and effectively promote the recycling of domestic scrap resources.
 
  At the same time, he mentioned that it is necessary to speed up the expansion of domestic ore supply and take increasing domestic iron ore supply as one of the measures to make up for the shortcomings. "Constrained by resource endowment and national policy environment, domestic mining enterprises are facing greater development challenges and operating pressure."
 
  "Carbon peak", "carbon neutralization": green development "+", carbon emissions "-"
 
  As an energy intensive industry, iron and steel industry is the largest carbon emission industry among the 31 categories of manufacturing industry, so it is imperative to speed up the research on low-carbon path.
  
  Huang Dao, Deputy Secretary General of China Iron and Steel Industry Association, said that the iron and steel industry will unswervingly promote green and low-carbon development and accelerate the research on the action plan of the iron and steel industry. "Further optimize the raw materials, process and energy structure, break through the bottleneck of low-carbon process technology, and promote the application of non fossil energy, especially hydrogen energy, in the iron and steel industry."
 
  Recently, Baowu, China, took the lead in putting forward the goal of achieving carbon peak by 2023 and carbon neutral by 2050. In addition, he steel, Jianlong, Rizhao and other iron and steel enterprises are also actively exploring the establishment of hydrogen metallurgy demonstration projects. The Institute of metallurgical industry planning and research has set up a research center for low carbon development, and Beijing University of science and technology and Northeast University have also set up a research center for carbon dioxide science and a Research Institute for low carbon steel cutting edge technology.
  • [Editor:Catherine Ren]

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