2010 due to European sovereign debt crisis and severe overcapacity of steel production capacity, the state’s increasing control over real estate, and price increases of iron ore, coal, electricity, oil, and transportation, and multiple factors affecting secondary natural disasters in Sichuan Province Next, the production and operation of the Sichuan vanadium-titanium steel industry once again underwent severe tests. Faced with the complex and ever-changing production and operation situation, the majority of cadres and workers in the entire industry have conscientiously implemented the national adjustment structure, eliminated a series of deployments of backward production capacity, energy conservation and emission reduction, strengthened management, digged internal potential, reduced energy consumption, eliminated backwardness, and improved The quality of production operations, vigorously expanding the market, strengthening product sales and payment recovery, accelerating cash flow, implementing low-cost operations, and the overall industry production and operation maintained a steady growth trend.
I. The output of major products continues to grow
According to the statistics of the Provincial Bureau of Statistics, from January to December, the province's steel industry produced 15.5531 million tons of crude steel, an increase of 4.76%; steel 19,004,800 tons, an increase of 6.65%; pig iron 15.917 million tons, an increase of 4.296%; ferroalloy 2,302,400 tons , a year-on-year increase of 27.33%; coke 109.915 million tons, a year-on-year decrease of 1.10%; iron ore ore content 90,335,400 tons, an increase of 28.70%; vanadium products 35,800 tons, an increase of 14.35%; titanium dioxide 366,600 tons, an increase of 24.54 %.
Second, the economic recovery
From January to December, the province's vanadium-titanium steel industry achieved sales of RMB192.914 billion, an increase of 30.69% year-on-year; realized profits and taxes of 10.33 billion yuan, a year-on-year increase of 14.90%; the industry’s profit and loss after offsetting total profit was 6.166 billion yuan, a year-on-year increase of 15.39%. .
Third, the recovery of some key enterprises
In response to the current severe situation in the steel industry, some key enterprises have seen their profits recover after adopting a series of energy saving, emission reduction, consumption reduction, and efficiency enhancement measures. Among them, Panzhihua Iron & Steel Group Co., Ltd. realized a year-on-year growth of profit of 26.94%, Chuanwei Group Co., Ltd. realized a year-on-year growth of 21.96%, and Desheng Steel Group's profit for the year increased by 26.94% year-on-year.
IV. Good connection between production and sales
From January to December, the production and sales rate of vanadium-titanium steel products in the province was 98.19%, which was a year-on-year increase of 0.01% and remained at a relatively high level.
V. The construction of major projects is progressing smoothly
In 2010, the Sichuan vanadium-titanium steel project was progressing smoothly. Among them, the steel reinforced concrete projects of Tatsu Steel Group and Desheng Group have been completed and put into production. The post-disaster reconstruction project of Panzhihua Steel has been successfully completed. The comprehensive utilization project of vanadium and titanium resources at the Pangang Second Base Xichang has been steadily advancing.
VI. Significant enhancement of technological innovation capabilities
In 2010, Chuanwei Group of Sichuan Province was newly recognized as the enterprise technology center. The Panzhihua Iron and Steel Group's development project for high-speed turnout railroads with speeds of 250km per hour and above, and the process design and equipment application research for the high-titanium-titanium-magnetite smelting of Panzhihua Iron & Steel Group with a 2000M3 blast furnace were awarded provincial first prize for scientific and technological progress.
Seventh, mergers and reorganizations have made some progress
In early 2010, under the active promotion of the State-owned Assets Supervision and Administration Commission of the State Council, Panzhihua Iron and Steel Group and Angang Group completed a strategic reorganization after more than six months.
Eight, the main steel price fluctuations
From April to July 2010, steel products continued to decline under the macro-control of the real estate market, and then oscillated upwards with liquidity easing and cost-driven growth, showing an upward trend of "N" fluctuations. From mid-April to late July, the prices of steel products fell for 12 consecutive weeks due to the direct impact of state-controlled real estate market prices. In July and August, steel prices fluctuate and rebounded due to the support of lower production supply and cost reduction. In September and October, Driven by the Fed’s quantitative easing policy, commodity prices have risen significantly overall. By the end of December, the prices of major steel products have increased, including: high-line prices of 4,758 yuan/ton, rebar 4,715 yuan/ton; cold-rolled coils, 5,591 yuan/ton, hot-rolled coils, 4,834 yuan/ton; ordinary seamless Steel pipe 5834 yuan / ton. It was about 600-800 yuan/ton higher than the end of 2009.
IX. Main problems
(I) The purchase of bulk raw materials remains difficult. In recent years, the production capacity of the iron and steel enterprises has been largely released, and the demand for bulk raw materials, especially iron ore and coal, has increased substantially in the industry. Although the production capacity of iron ore in the province has increased in recent years, it still cannot meet production requirements. The remaining insufficiency still needs to be resolved by imports. In particular, Sichuan Iron and Steel Group and other enterprises do not have large-scale self-provided iron ore mines, mainly relying on the procurement of domestic and foreign iron ore production, while there is no iron ore self-import and export rights, import iron ore There is a lot of instability in procurement and supply, which has a great impact on the smooth operation of production and operations.
(b) Difficulties in railway transportation. With the completion of post-disaster reconstruction projects and other key technical transformation projects in the Sichuan Iron and Steel Industry, the scale of production has expanded, and the raw, fuel, and auxiliary materials required for production have increased significantly. If the problem of railway transportation is not solved, it will seriously restrict the production and operation of enterprises and economic benefits.
(c) The funding is tight. In 2011, the country adopted a prudent monetary policy and continued to implement macro-control policies for the steel industry with overcapacity. The state-owned commercial banks imposed stringent conditions on steel enterprises, and complications will hamper steel companies in 2011. The replenishment of enterprise production liquidity and the financing of structural adjustment will encounter great difficulties. If the funding problem is not effectively resolved, it will also have a greater negative impact on the normal operation of production and operations.
(D) The cost pressure will continue to increase. In 2011, the prices of bulk raw materials for iron and steel production, especially coal prices, will continue to operate at high levels. Coupled with the price increases for electricity, natural gas, refined oil, and transportation, the pressure on production and operating costs of steel companies will increase. At the same time, the state has repeatedly raised the deposit reserve ratio and raised the interest rate, and the cost will also increase significantly. The cost pressure on enterprises has increased, the profit space has been squeezed, and the external environment for industrial development will continue to deteriorate.