In May, the domestic steel market ushered in a “open doorâ€, and the steel price showed a strong rebound, which was the concern of steel traders. Ren Qingping, vice president of Shanghai Steel Trade Association and chairman of Shanghai Wubo Steel Structure Materials Co., Ltd., said in an interview with China Metallurgical News that there are many favorable factors in the domestic steel market, such as expanding domestic demand, environmental protection and production, and realizing North Korea. These factors, such as the peaceful development of the peninsula, are conducive to the steady operation of the domestic steel market.
Ren Qingping said that at the Political Bureau meeting of the CPC Central Committee held on April 23, the Party Central Committee analyzed the current economic situation and economic work and deployed the next economic work focus. The meeting re-raised that "continuously expanding domestic demand" caused the steel sector operators. Wide attention.
From "adjusting structure-oriented" to "adjusting structure and expanding domestic demand in parallel", it reflects that the pressure of trade conflicts on the economy has emerged. "Continuous expansion of domestic demand" will certainly drive demand for steel. Ren Qingping said that these specific measures to expand domestic demand are closely related to the industry and closely linked to the steel market. For example, speeding up the construction of major infrastructure such as railways, highways and airports, accelerating the construction of affordable housing projects, increasing poverty alleviation and development, and accelerating the earthquake-stricken areas. Rebuild various jobs, etc. It can be said that these measures and projects to expand domestic demand are the “steel demand source†and “growth point†of the industry in the future. In addition, the central bank’s first “reduce†and the Ministry of Finance’s adjustment of the value-added rate in the past two years have also provided strong support for the sustainable development of downstream steel industries such as manufacturing, transportation and construction, and injected strong demand for “steel demandâ€. The power.
Ren Qingping said that the expansion of domestic demand proposed by the top officials of the country was combined with the acceleration of structural adjustment. This is also a big benefit for the industry, which is conducive to alleviating the contradiction between supply and demand in the steel market.
A few days ago, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the "Key Points for Resolving Excess Capacity in 2018", demanding adherence to the principles of marketization and rule of law, and unswervingly fulfilling the tasks of resolving excess capacity, and proposed Practical measures for resolutely disposing of "zombie enterprises", prohibiting new production capacity, preventing the resurgence of "strip steel" and preventing the resumption of overcapacity that has been resolved. The goal of dissolving the excess capacity of 30 million tons in the industry this year has been clarified, and various localities are stepping up implementation.
Ren Qingping pointed out that the increase in environmental protection will accelerate the adjustment of the structure of the industry and the pace of production capacity, which will greatly alleviate the contradiction between supply and demand in the steel market and change the situation of supply and demand mismatch. Since the beginning of this year, many places have frequently made great efforts in rectifying environmental protection issues, and the industry has been listed as a key target for rectification. For example, a few days ago, the Hebei Provincial Government announced the list of key polluting enterprises in Hebei Province in 2018, and a total of 164 related enterprises, including 68 in Tangshan. The number of key polluting enterprises was higher than that in other regions; Xingtai was cracking on the issue of “heavy besieged city†Continue to exert efforts, focus on promoting the rectification of industries such as coking, coking, glass, thermal power, etc., and implement the four-season normalization and production limit for the above industries; 邯郸 unswervingly accelerate the progress of relocation of heavy polluting enterprises in the main city, clear time limits and steps, and Implement inventory-based classification management for related enterprises around the main urban area, and promote enterprise transformation and upgrading, retreat to the city, and shut down and ban according to the plan. This is a big plus for the steel market.
In addition, Ren Qingping also spoke to the reporter of China Metallurgical News about a major factor in the steel market. At present, the Korean Peninsula has a peaceful atmosphere. The DPRK-ROK leaders have met for the first time in more than a decade, and the relationship between the two countries has opened a new era. North Korea announced a new strategic line that will concentrate all its efforts to develop the economy and improve people's living standards. Ren Qingping said that in the future, the cooperation between the ROK and the DPRK will definitely drive demand for steel. At present, North Korea’s infrastructure is still relatively backward, and there is a lot of room for development. North Korea’s own steel production is limited, and it is difficult to meet the demand for steel in domestic economic construction. Imports are needed to make up for it. This is a potential business opportunity for the Chinese industry. The peaceful development of the Korean Peninsula and the cooperation between the DPRK and the ROK are also good for the economic construction and import and export trade in Northeast China. In the future, after the opening of the DPRK, China's Dandong and Hunchun ports will certainly bear more freight. Because North Korea's ports are not yet capable of carrying a large amount of cargo throughput, China's ports will play an important role in a short period of time. This will drive the direct and indirect exports of steel and become a highlight of the “steel demand†in Northeast China.
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