In order to actively learn and implement the requirements of the Political Bureau of the CPC Central Committee to prevent "internal volume" vicious competition, crack the development dilemma of the steel industry, create a healthy competitive environment for the industry, gather consensus and form a joint force, on August 30, the China Iron and Steel Industry Association held a symposium in Beijing to strengthen the self-discipline of the steel industry. 18 steel enterprises participated in the exchange, Jiang Wei, deputy secretary of the Party Committee, vice president and secretary-general of the Steel Association attended the meeting and made a concluding speech, Xia Nong, Luo Tiejun, vice president of the Steel Association, responded to the opinions and suggestions of the enterprise on the scene. Luo Tiejun presided over the meeting.
Representatives from China Baowu, Angang, Shougang, Hesteel, TiSCO, Shagang, CITIC Special Steel, Hunan Iron and Steel, Shan Iron and Steel, Baotou Steel, Henan Iron and Steel, Nangang, Sansteel, Shaanxi Steel, Jiusteel, Sichuan Yekong, Jinhong Iron and Steel, Hongde Iron and Steel and other participating enterprises exchanged production and operation conditions, adhered to the principle of "three set and three do not", and self-regulated production control and inventory reduction. And put forward suggestions for later work on enterprise concerns such as capacity management, strengthening self-discipline, output control and variety structure optimization. Steel Association chief economist Wang Yingsheng, Deputy Secretary General and director of the market research Department Shi Hongwei, Deputy Secretary General and comprehensive Department (financial Assets Department), Director of the International cooperation Department Su Changyong, Deputy Secretary General and director of the Industrial operation Department Chen Yuqian attended the meeting.
Representatives of the participating enterprises fully affirmed the timeliness, necessity and importance of the meeting, that in the context of the current steel market situation is very severe, the meeting will play a positive role in strengthening self-discipline, boosting confidence in development, strengthening industry self-discipline, and maintaining the smooth operation of the market. Overall, in the first 7 months of this year, iron and steel enterprises have reached a consensus on the development stage of "reduction development and stock optimization" in the industry, and have fully understood the severity of the "three high and three low" operation situation.
Representatives of the participating enterprises unanimously said that they will actively respond to the call of the Steel Association, implement the vicious competition proposed by the Party Central Committee with practical actions to prevent "internal volume", seriously practice the "three set three do not" business principle, maintain strategic focus, adhere to self-discipline to control production and reduce inventory, and strive to maintain market stability, improve economic efficiency, and reduce business risks. At the same time, the participants reflected that the operation of enterprises is facing greater difficulties, the implementation of crude steel production control policies in different places, the shackles of local unilateralism, homogenized competition, high raw material costs, capital market speculation, the increase of international trade barriers and other problems restrict the healthy development of enterprises, and need to be effectively solved.
Enterprise representatives also put forward many constructive suggestions for the later work: first, strictly implement the crude steel output control policy, assign the indicators to the relevant enterprises that have not been allocated as soon as possible, clean up and rectify the bottom single enterprises, and promote fair competition in the market and the survival of the fittest. The second is to adopt the establishment of industrial funds and other ways to establish a practical and effective production capacity exit mechanism. The third is to win policy support for the joint restructuring of steel enterprises, which should not only play the role of the visible hand of the government, but also encourage market-oriented restructuring. Fourth, encourage the export of high-end products, and achieve technological upgrading and product competitiveness in participating in high-level international competition. Fifth, promote the improvement of the "dual carbon" policy system, and promote energy conservation and carbon reduction in depth. Sixth, foster the formation of industrial chain coordination mechanism, establish long and short process coordination, "double cycle" integration and development mechanism.
In his concluding speech, Jiang Wei introduced the background and purpose of the meeting, and fully affirmed the innovative and practical opinions and suggestions put forward by representatives of various enterprises. He said that through the discussion and exchange, we have deeply studied and implemented the spirit of the meeting of the Political Bureau of the Central Committee, and achieved the goal of unifying ideas and inspiring confidence for the stable operation of the industry. It is hoped that everyone will look at the current situation in accordance with the "rational, realistic and positive" policy proposed by Secretary He, not only to recognize the particularity and severity of the current situation compared with the previous downward cycle, but also to be confident in the future, and believe that as long as we prevent the vicious competition of "internal volume" and strengthen self-discipline to control production and reduce inventories, China's steel will still show strong resilience and strong momentum. After the meeting, the association will sort out the suggestions of enterprises as soon as possible, and carry out special studies on common problems and key issues.
The meeting pointed out that first, fully understand the macro situation and rationally face the adjustment of the steel development stage. The communique and Decision of the Third Plenary Session of the 20th CPC Central Committee make it clear that high-quality development is the primary task of comprehensively building a modern socialist country. After years of development, China's economy has been transformed from high-speed growth to high-quality development stage, and it is not possible to rely on the state to introduce large stimulus policies to achieve large-scale growth in demand. As far as the industry is concerned, the current industry situation is similar to 2008 and 2015, but there are many differences, steel companies should have a rational judgment, realistic choices, and positive responses to the current situation. The steel industry is accustomed to and familiar with the operation strategy under the continuous growth of the market, and the countermeasures under the reduction and development are still actively explored at the enterprise level, the industry level and the national level. In this process, it is particularly important to prevent the vicious competition of "internal roll". We must respond to the call of the central government, strengthen industry self-discipline, maintain strategic focus, adhere to the "three set three do not" business principle, the whole industry must be from the ideological, action, strategic rational face the industry development stage adjustment.
Second, the vicious competition of "internal involving-type" is a shortsighted behavior bound by oneself, which has great harm. The obvious decline in economic efficiency is the most direct problem facing the whole industry. According to the statistics of the Steel Association, from January to July, the average profit margin of the steel industry was only 0.97%. On the surface, the problem is on the demand side, but the root cause of the current situation is the vicious competition of "internal volume". Typical cases at home and abroad show that if the industry does not self-discipline and adjustment, the "internal volume" vicious competition will become increasingly fierce, which will bring irreversible losses to the healthy and sustainable development of the industry as a whole. "Internal" vicious competition is not a market economy, the real market economy is through fair competition, to achieve the optimal allocation of resources, so as to achieve technological progress, efficiency improvement. "Price war" is not an effective market competition, "internal volume" vicious competition of the mutual constraints, mutual harm, will lead to the industry's technical progress is weak, product quality decline, serious waste of resources, and ultimately will only harm others. Industry enterprises should compete and win-win, get out of the "internal friction" dilemma, get rid of the "internal volume" quagmire, pour more resources into product innovation and service upgrading, and move from scale efficiency competition to technological innovation competition.
Third, full of confidence, as long as the "internal roll" vicious competition is prevented, China's steel will still show strong vitality. The steel industry should actively implement the spirit of the Political Bureau of the CPC Central Committee, strengthen industry self-discipline, prevent "internal volume" vicious competition, and organically combine the national macro-control policy with industry self-discipline. We need to see that although the apparent consumption of steel continues to decline, there is an increase in the reduction. China is still in the process of industrialization, is the world's largest steel market with an annual consumption of more than 800 million tons, apparent consumption of industrial materials is still growing, new energy steel, steel structure steel and other fields of steel is expected to increase significantly, worth looking forward to. At the same time, the overall equipment of China's steel industry is at a relatively high level, and the overall asset status of the industry remains at a good level. We should be confident in the vitality and future development of China's steel. The history of the development of the world steel industry also proves that even in the stage of reduced development, as long as the industry has self-discipline, there will be opportunities and space for development. China's steel will certainly be able to explore a new model of production and operation in the development stage of reduction, and gradually find a feasible path to achieve a dynamic balance between market supply and demand. We call on leading enterprises, including leading electric furnace steel production enterprises, to stand in the height of high-quality development of the industry, set a benchmark, make an example, strengthen regional self-discipline, and truly achieve quality and effective development.
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