At present, a large number of steel enterprises are losing money

92 large and medium-sized steel enterprises, 34.8% loss! Shan Steel Group: The incandescent competition of steel enterprises has begun, in the past was the differentiation of ‘fast and slow’, and now it is the test of ‘life and death’

In the face of the increasingly severe steel market situation, the 2024 working conference of Shan Steel Group made a judgment – “The incandescent competition of steel enterprises has begun, the past was the differentiation of ‘fast and slow’, and now it is the test of ‘life and death’.” In this regard, Zhang Baocai, secretary of the Party Committee and chairman of the board, firmly said: “Recognize the situation, self-reliance and self-improvement, and firmly ‘turn over losses and increase profits, return to the mother as a positive’ fundamental goal.”

This year is a key year for the implementation of the “14th Five-Year Plan” and a “historic year” for the comprehensive cooperation between Shansteel Group and China Baowu to enter a new journey. Facing the ultimate test of “life and death”, the majority of cadres and workers must clearly understand the “time” and “potential”, dialectically treat the “crisis” and “opportunity”, and strengthen their confidence in coping with challenges; Grasp the “new” and “old” as a whole, and prepare for breakthroughs in high-quality development.

At present, the steel market in the ups and downs in the depth of adjustment, excess capacity, insufficient domestic demand and raw material prices, making the profits of steel enterprises meager, the entire industry in trouble, “severe complex” “deep adjustment” has become the norm.

Li Qiang, deputy general manager of the finance department of Shan Steel Group, said: “Since the second half of 2022, China’s steel industry has entered a deep adjustment period, and the loss of 92 large and medium-sized steel enterprises in 2023 has reached 34.8%, and Shan Steel Group is not optimistic according to the total profit. Heading into 2024, the situation is even more dire.”

In this situation, Shansteel Group still has some problems in some key areas such as insufficient development vitality, insufficient transformation power, and weak innovation ability, and there is a certain gap with advanced enterprises.

Despite the difficulties, there are both opportunities and challenges. The Central Economic Work Conference held in December 2023 put forward the requirements of “seeking progress while maintaining stability, promoting stability through progress, and achieving progress before breaking down.” It stressed that focusing on high-quality development, we should strengthen counter-cyclical and cross-cyclical adjustment of macro policies, continue to implement proactive fiscal policies and prudent monetary policies, and consolidate and strengthen the momentum of economic recovery. We will continue to promote the effective improvement of the economy in “quality” and reasonable growth in “quantity”.

On February 23, Hu Wangming, secretary of the Party Committee and chairman of China Baowu, said in response to why Baowu invested in Shansteel that Shandong Province has unique location, resources and industrial advantages, which is not only the third largest economic province in the country, but also an important market for steel consumption, and investment in Shansteel is the strategic significance of Shansteel project. For Shan Steel Group, after comprehensive cooperation with China Baowu, gathering the trend of “integration” and releasing the effect of “synergy” will help Shan Steel effectively improve the market share and market competitiveness in various segments.

In the face of the test of “life and death”, Shansteel Group has only “Huashan one way”, that is, “firmly ‘turn losses and increase profits, return to the mother for the right’ fundamental goal.” Only by quickly seizing the opportunity, capitalizing on the momentum, and realizing the fundamental goal can we ensure our survival, ensure the well-being of employees, ensure future development, and maximize the interests of the group, shareholders, and employees.