Zhu Xinmin, executive vice president of China Steel Association, said that in the first quarter, the output of steel production capacity in the country increased excessively. The output of pig iron, crude steel and steel (including recycled materials) was 178.23 million tons, 191.89 million tons and 245.51 million tons, respectively, up 7.6 year-on-year. %, 9.1% and 12.3%.
Since the beginning of this year, driven by economic growth and increased market expectations, steel prices have rebounded slightly, and the operating conditions of steel companies have improved. However, due to the rapid release of steel production capacity and relatively weak market demand, the steel market is still in a situation of oversupply, and the rapid rise in the prices of raw materials such as iron ore, the operating situation faced by steel companies is still grim.
Despite the overcapacity of steel, fixed asset investment in the steel industry continues to grow. According to the National Bureau of Statistics, in the first quarter, the cumulative investment in fixed assets of the national steel industry was 92.4 billion yuan, a year-on-year increase of 7.3%. Steel social inventories are increasing month by month. By the end of March, the social inventory of major steel products and major steel products in the country had increased by more than 10 million tons from the end of the previous year, an increase of more than 80%.
When talking about how to resolve the problem of overcapacity, Li Xinchuang, deputy secretary-general of China Steel Association, said that in the current domestic pollution problem, the steel industry should further strengthen environmental governance, in order to truly resolve the problem of overcapacity and promote steel enterprises. Fair competition.
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