On April 29th, the China Iron and Steel Association held a symposium on the economic operation of some steel enterprises in the first quarter in Beijing. Tang Zujun, a member of the Standing Committee of the Party Committee and vice president of the China Iron and Steel Association, attended the meeting and delivered a concluding speech. Chen Yuqian, deputy Secretary-General of the China Iron and Steel Association and director of the Industry Operation Department, presided over the meeting and introduced the industry's operation situation in the first quarter. Shi Hongwei, deputy secretary-general and director of the Market Research Department of the China Iron and Steel Association, Feng Chao, deputy Secretary-General and director of the Science and Technology and Environmental Protection Department, Zhao Jinkui, deputy Secretary-General, Diao Li, director of the Information Statistics Department, and Wang Bin, director of the Planning and Development Department, attended the meeting and responded to the relevant issues of concern to the participating enterprises.

At the meeting, the relevant responsible persons of 17 key steel enterprises including China Baowu and Ansteel Group exchanged the production and operation situation of their enterprises in the first quarter, introduced the relevant situation of implementing the "Three Determinations and Three Don 'ts" business principle, analyzed and discussed the current problems faced by the enterprises, shared the measures taken to deal with the current development situation of the industry, and at the same time analyzed and judged the next industry situation. And put forward relevant opinions and suggestions.

The meeting held that in the first quarter of this year, steel enterprises overcame the complex and severe challenges of the external environment, actively practiced self-discipline and production control, and their operating benefits generally improved significantly compared with the same period last year. The vast majority of enterprises achieved a "good start". However, in March, when the business situation improved somewhat, some enterprises increased their production efforts again, which brought certain pressure to the operation of the industry in the following period.

Regarding the future market, the participating enterprises believe that under the disturbance of factors such as the tariff war initiated by the Trump administration of the United States, global trade is facing considerable uncertainties. Coupled with the increase in steel trade remedy investigation cases, China's steel exports, especially indirect exports, are facing significant challenges, and the domestic supply and demand contradiction may further intensify. At the same time, it is suggested that the state and local authorities implement the crude steel production control policies as soon as possible to promote the balance between supply and demand, strengthen industry self-discipline and coordination, actively implement the "Opinions on Improving the Price Governance Mechanism" (hereinafter referred to as the "Opinions") issued by the General Office of the Central Committee of the Communist Party of China and The General Office of the State Council, and resist the "involution" vicious competition.

In his concluding remarks, Tang Zujun analyzed the current development situation of the industry. He pointed out that the steel industry's business situation was relatively good in the first quarter, with a significant year-on-year improvement in economic benefits. This improvement is the result of the joint efforts of industry self-discipline and production control, and there can be no slackness. The development path of the industry in the future is still rather difficult, and the steel industry still faces severe challenges, which may be unprecedented. It is even more necessary to objectively and calmly assess market changes and jointly maintain market stability.

Tang Zujun pointed out that from the perspective of the external situation, the United States and European countries regard the steel industry as a core area for safeguarding economic sovereignty and national defense security, and their emphasis on the steel industry is constantly increasing. Tariff wars and trade wars will affect the changes in the global steel industry pattern. Meanwhile, the game between the two main players in the once-in-a-century transformation - China and the United States - is long-term, persistent and comprehensive. The situation is complex and intricate, with increasing uncertainties. The impact may gradually escalate and expand. Steel enterprises must enhance their judgment of market changes and act in accordance with the trend.

From an internal perspective, China is currently in the process of transforming old and new growth drivers. This year, the demand from downstream steel-consuming industries in China may still decline slightly. Although the overall operation of steel enterprises has improved significantly in the first quarter of this year, this is based on a relatively low base last year. At present, the overall benefits of the industry are still at a relatively low level in recent years, and the industry's sales profit margin is still far lower than the industrial average. Therefore, steel enterprises still need to have a good overall grasp of the production rhythm, implement the production restriction policy well, and avoid the deterioration of the supply and demand contradiction.

For the next stage of work, Tang Zujun believes that it is necessary to adhere to stabilizing prices, reducing costs, increasing efficiency and promoting transformation, and solidly promote the high-quality development of the industry. The high-quality development of the steel industry should not only be reflected in high standards, high technology, high quality and high efficiency, but also in high benefits. Without benefits, there will be no support for transformation and upgrading, and the industry will lose its competitiveness and have no future.

First of all, stabilizing prices is a key factor for stable operation. He disclosed that this year, the China Iron and Steel Association will actively implement the "Opinions", break through the "involution" vicious competition, and take stabilizing prices as a key task. He suggested that steel enterprises establish a leading group for the price governance mechanism with the main person in charge as the group leader, and take improving the price governance mechanism as the core measure to deal with the current situation challenges, enhance economic benefits and promote the high-quality development of the industry. Price governance should address both the symptoms and root causes. It is also necessary to actively study and promote the establishment of a new mechanism for capacity governance to fundamentally change the situation of imbalance between supply and demand.

Reducing costs is the foundation for stable operation. He introduced that through the recent research on the cost of the steel industry by the China Iron and Steel Association, it was found that there is still potential for cost reduction in the industry. Therefore, in the face of the decline in steel prices and the compression of profit margins, steel enterprises should continue to adhere to the fine tradition of benchmarking and tapping potential, look inward, hone their basic skills, and promote the refinement and systematization of cost control.

Increasing efficiency is the core of stable operation. At present, the steel industry is in a period of deep adjustment. Steel enterprises should fully recognize the long-term and arduous nature of the industry adjustment, continue to unswervingly implement the "three determinations and three don's" business principle, truly improve efficiency, and enhance their ability to resist risks during the industry's downturn.

Finally, promoting transformation is the guarantee for stable operation. He pointed out that the transformation towards high-end, intelligent and green development is the inevitable path for the high-quality development of the industry. The steel industry system is vast, with a large market space and great potential. Currently, it has made considerable progress on the path of transformation, and in some fields, it is at the forefront of the world. We must continue to unswervingly move towards high-end, intelligent and green development.

Tang Zujun concluded by emphasizing that steel materials are irreplaceable, the steel industry is indispensable, development achievements are indelible, problems and challenges cannot be ignored, transformation and upgrading are unshakable, and the development prospects are unlimited. Steel enterprises should be full of confidence, rise to the challenges, accelerate transformation and upgrading, and achieve high-quality development.