China Steel Association: the recent steel market chasing up and down, the initiative steel enterprises to maintain a firm, to avoid stampede

On March 28, the China Iron and Steel Industry Association issued a proposal "Recognize the situation and maintain determination to jointly maintain the stable and orderly development of the steel industry."
The China Iron and Steel Association stated that the iron and steel industry is an important basic raw material industry and is vital to the healthy and stable development of the national economy. The high-quality development of the steel industry is the unity of quality and quantity, which is the last word. The national industrial structure determines the consumption structure, the consumption structure determines the variety structure, and the variety structure determines the production structure. Since the Spring Festival, the steel market has been declining rapidly, showing a "three high and three low" situation of high output, high cost, high inventory, low demand, low price and low efficiency. In the short term, the steel market fluctuates greatly, which is not conducive to the orderly and healthy development of the industry. In this initiative:
1. clearly understand the situation and unify our thinking and understanding. The main driver of the recent market downturn stems from the lack of demand, the continued downturn in the real estate market and the slowdown in the intensity of infrastructure construction, resulting in the slow start of downstream demand. The precondition of production is consumption, and the core of enterprise management is profit. In a market environment where steel supply is stronger than demand, the key to achieving a dynamic equilibrium between supply and demand is to give full play to the role of steel companies as market players. Iron and steel enterprises should take the initiative to follow the self-discipline production mode of "meeting the needs of users and balancing supply and demand" to reduce production intensity.
2. cohesion and promote orderly development. Iron and steel enterprises should follow the principle of "three fixed and three do not" of "fixed production by sales, fixed production by efficiency, and fixed sales by present", pursue quality operation, effective development, reduce ineffective supply, and maintain the balance of supply and demand. Leading enterprises should stand at the height of high-quality development of the industry, take the lead in setting an example, and promote the smooth operation and orderly development of the steel market.
3. maintain concentration and maintain market stability. The recent steel market volatility is obvious, there is a catch-up phenomenon, magnifying the volatility, is not conducive to the smooth operation of the steel market. Iron and steel enterprises should rationally look at market fluctuations, maintain strategic determination, oppose low-price dumping, resist vicious competition, and jointly create a fair and stable market environment; enhance risk prevention awareness, control sales channels, and strictly prevent low-price selling from disrupting market behavior. avoid market trampling and prevent market ups and downs.
4. deepen cooperation to achieve mutual benefit and win-win results. The iron and steel industry belongs to the heavy asset industry, the industrial chain is long, the upstream and downstream partners are many, a loss is a loss of prosperity, the more in the market down period of industrial chain synergy is more important. Iron and steel enterprises should strengthen upstream and downstream communication, constantly innovate cooperation models, strengthen mutual trust, deepen cooperation, take a long-term view, face the future, form a close community of interests, and achieve mutual benefit and win-win results.
5. firm confidence, planning production and operation. In the process of moving towards high-quality development in the steel industry, the total demand has reached its peak and the structure is constantly changing. The two sessions of the government work report put forward, "promote the steady growth of consumption, and actively expand effective investment". Recently, the State Council issued the Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-in, and with the gradual landing of the policy, downstream demand is expected to be gradually released. At present, the scale of China's steel demand is still huge, and what urgently needs to be improved is the ability of the industry to adapt to the market. Iron and steel enterprises should rationally analyze, accurately study and judge, fully grasp the market trend, reasonably control the production rhythm according to the market changes, reduce the enterprise inventory as soon as possible, and realize the dynamic matching of supply and demand.