How to adapt to changes in the hottest steel enter

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According to the steel industry adjustment and upgrading plan (2016-2020), the steel consumption intensity and total consumption in China showed a downward trend during the 13th Five Year Plan period. The steel production capacity reduction target set in the 2017 government work report was about 50million tons, and the industry situation was grim

"the iron and steel industry is the basic raw material industry of the national economy, and its important position and role are beyond doubt. In the current context, it is necessary to change the strain and remove the production capacity scientifically, so as to finally realize the cost reduction and efficiency increase of enterprises and the healthy development of the industry." Shenwenrong, chairman of the board of directors of Jiangsu Shagang Group, said

the development environment is facing great changes, and the transformation of steel enterprises is imperative.

"at present, the steel industry is in the difficult process of resolving production capacity and reforming and upgrading at the same time. Only by adapting to the new and adapting to changes can we break the original pattern and realize the dual development of de production capacity and transformation and upgrading." Shen Wenrong said

the current environment for the development of China's iron and steel industry has changed significantly compared with the previous ones, specifically as follows:

first, the current overcapacity in China's iron and steel industry is a concentrated reflection of the problems of both supply and demand. From the demand side, due to the impact of the international financial crisis, foreign demand shrank, and China's economic growth has transitioned from high-speed to medium high-speed, resulting in a slowdown in the growth rate of steel demand. From the supply side, China's iron and steel products can not meet the market demand for high-end products in terms of innovation and R & D capabilities

second, the construction of a manufacturing power and an innovative country in China urgently needs the transformation and upgrading of the steel industry. At present, the market demand for steel varieties, quality and services is constantly upgrading, and there is a certain gap between the independent innovation investment of China's steel industry and that of developed countries. It is imperative for innovation to drive the transformation and development of the steel industry

third, under the new normal, the appropriate development of diversified industries is the strategic choice of iron and steel enterprises. At this stage, there is a serious overcapacity in iron and steel, and the buyer's market is dominant. The layout of diversified industries can meet the diversity of choices of terminal needs and avoid homogeneous vicious competition in mini convertible cars. From the perspective of international experience, the non steel industry of steel giants such as ThyssenKrupp, Nippon Steel and South Korea POSCO accounts for a large proportion and is an important part of their development strategy

identify the market layout in advance, and steel enterprises can blossom more.

it is the general trend for the steel industry to reduce production capacity. How can we resolve the disadvantages and turn them into huge opportunities for transformation and upgrading during the pain of adjustment

Shen Wenrong said that the combination of capacity reduction and cost reduction is the most direct means for iron and steel enterprises to improve quality and efficiency. Shagang actively promoted the negative list to reduce losses and improve its cost advantage. By the end of last year, the accumulated capital reduction of Shagang Group headquarters alone had reached 2.94 billion yuan. At the same time, Shagang implemented the iron and steel industry 4.0 plan within the group, and applied a large amount of saved resources to product quality control and high-end new product development, which continuously enhanced its competitive advantage, and made Shagang lose less when the industry was frustrated, and benefit greatly from the recovery of the industry

promote the coordinated and coupled development of the main steel industry and non steel industry, and enable steel enterprises to "walk on multiple legs". Shagang began to learn from the experience of foreign well-known steel enterprises in the non steel industry 10 years ago, especially in the fields of new energy, new materials, IDC Internet big data, etc. at the end of 2016, as the largest investor in the safe use of our company's experimental machine, Shagang participated in the acquisition of the shares of global switch, the second largest supplier of the world's approved data center, through which it spread all businesses in the European continent, the UK and the Asia Pacific region, Lengthen the industrial chain and enter the global market in one fell swoop in the non steel industry

before the implementation of the project land flood drainage ditch to culvert project, many steel enterprises like Shagang are resolving the new linkage between production capacity and transformation and upgrading, so as to promote the improvement of efficiency and level

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