Expert: In 2021, the domestic steel industry has more opportunities than risks

On January 8-9, the 2021 11th China Iron and Steel Logistics Cooperation Forum was held in Shanghai Pudong Shangri-La Hotel. The forum was guided by the China Federation of Logistics and Purchasing, and jointly hosted by the China IOT Steel Logistics Professional Committee, Shanghai Zhuo Steel Chain and Nishimoto Shinkansen. Experts and scholars from the field of bulk commodities, as well as corporate elites in the industrial chain of steel production, logistics, warehousing, finance, construction, etc., gathered to fully, systematically and deeply experience the industry pulse, and innovative transaction models for my country’s steel logistics supply chain , Accelerating the development of industrial upgrading and integration of emerging strategies, etc., conducted in-depth discussions.

In 2020, despite the pandemic sweeping the world, China is the only economy to achieve positive growth.

The epidemic has accelerated the transformation of the industry. Focusing on China’s iron and steel industry, Cai Jin, vice chairman of the China Federation of Logistics and Purchasing, predicted that under the environment of 6% economic growth, the iron and steel industry or steel consumption should remain at 3%-4% during the “14th Five-Year Plan” period. Level. Before 2020, China’s steel consumption will exceed 900 million tons; in 2020, the market fundamentals will be about 1.15 billion tons, or even higher. During the “14th Five-Year Plan” period, domestic new energy and consumption of steel may range from 150 million to 200 million tons.

In response to the development of the consumption side of the steel industry, Li Xinchuang, party secretary of the Metallurgical Industry Planning and Research Institute, predicted that steel consumption will show a small increase this year. In the short term, China’s steel consumption remains high and hovering. Under the influence of the country’s active fiscal policies such as increasing tax and fee reduction and expanding government investment, the growth in demand from major downstream steel companies such as construction will drive the increase in steel consumption.

In the field of scrap steel, Feng Helin, deputy secretary-general of the China Scrap Steel Application Association, stated that my country’s scrap steel resource utilization ratio has risen from 11.2% during the “Twelfth Five-Year Plan” period to 20.5%, achieving the “Thirteenth Five-Year Plan” of my country’s scrap steel industry two years ahead of schedule. “The 20% expected target put forward by the development plan.

Looking forward to the future of China’s macroeconomic development, as Guan Qingyou, chief economist of the Institute of Financial Research, said, China’s economy has achieved a strong recovery in the first half of 2021. Wang Depei, chief economist of the Foca Think Tank, believes that the epidemic is a lever of historical development. From the perspective of GDP, the world’s Noah’s Ark is in China.

In the secondary market, Qiu Yuecheng, director of black research at Everbright Futures, judges that in 2021, various sectors of the country may see a rise in turn. In the past ten years, the price of rebar has climbed to 3000-4000 yuan/ton; in the context of the global economic recovery, the entire domestic steel price may rise to more than 5000 yuan/ton.

The iron ore problem in the steel industry has attracted much attention. Li Xinchuang said that 85% of my country’s iron ore is imported, and iron ore is too monopolistic and concentrated. In addition, iron ore has entered savings and capital speculation. Wang Jianzhong, secretary-general of the Iron and Steel Logistics Professional Committee of the China Federation of Logistics and Purchasing, also pointed out that the disorderly rise of iron ore has squeezed the profits of the supply chain. Both need to be treated with caution.

The epidemic forces companies in the industry chain to achieve online and intelligent

In the age of industrial Internet, the rapid development of the steel industry is inseparable from technological innovation and practical applications. In this regard, Qi Zhiping, CEO of Zall Zhilian Group, a representative of the bulk industry Internet companies, believes that the new crown epidemic in 2020 will force companies to fully implement informatization, digitalization, and online reforms.

Taking its subsidiary Zhuo Steel Chain as an example, supply chain financial services have three major advantages: informatization, digitalization and online. Customers’ online application, online review, and online lending are counted in minutes, ensuring the timeliness of financial service support in the trade link of the industrial chain. Behind this is the digital empowerment of the tracking and monitoring of platforms such as smart trading platforms and smart IoT. The platform links a large number of industry data sources, conducts cross-validation, and builds a credit evaluation system with transactions as the main body, so that finance will benefit more upstream and downstream entities in the steel industry.

Zall Zhilian has been in the bulk field for many years, and has built the ecology of agricultural products, chemicals, plastics, steel, non-ferrous metals, etc., and based on transaction scenarios and big data to provide industrial chain integration services such as property, logistics, finance, cross-border, and supply chain management. Become China’s largest B2B transaction and supporting service system.

To further understand the supply chain financial services, Zhang Hong of Zhongbang Bank shared an excellent case of the integration of industry and finance in the steel industry. The supply chain financial service product designed by Zhongbang Bank and Zhuo Steel Chain, an Internet platform for the steel industry, provides customized financing services for small and medium enterprises in the steel industry chain. As of 2020, 500+ companies serving the steel industry chain will be newly added, and 1,000+ corporate customers will be served cumulatively. Through the application of technologies such as big data and blockchain, service efficiency has also been qualitatively improved. In 2020, the financing approval of the two companies can be completed in a single working day, and a single day of 250 million + funds will be invested.

As the representative consumer terminal enterprises of the steel industry chain, Huang Zhaoyu, director of Zhenhua Heavy Industry Offshore Platform Research Institute, and Wei Guangming, executive deputy director of China Railway Construction Corporation Centralized Procurement Center, also delivered keynote speeches. Manufacturing and large-scale infrastructure are the main pillar industries of China’s steel consumption. The two guests expressed their suggestions to achieve synergy between supply and demand with upstream steel mills and midstream steel trading companies, and hope to cooperate with outstanding industrial Internet companies like Zhuo Steel Chain , To jointly create a safe, valuable and efficient steel supply chain integrated service system.

Serving the entire steel industry chain, Zhuo Steel Chain reduces costs and increases efficiency for the industry

It is understood that Zhuo Steel Chain is committed to innovation, deeply cultivates the steel industry chain, adheres to the “technology + commerce” two-wheel drive, realizes the data link between the upper, middle and lower reaches of the industry chain, and creates a first-class Internet integrated service platform for the black bulk commodity industry. Improve quality and empowerment for the development of the steel industry.

In 2021, Zhuo Steel Chain will increase continuous investment in the specialized and customized service capabilities of the steel downstream industry, with the strategic goal of co-construction and improvement of digital operation service management. In this regard, Zhuo Steel Chain implements the “Zhuo +” parallel partner plan, through joint ventures or cooperation, to deepen the industry consumer terminal market, each sub-field only chooses one partner, complementary advantages and benefit sharing. It aims to provide infrastructure, municipal, key livelihood projects, equipment manufacturing for central enterprises, state-owned enterprises, listed companies, and industry leaders through the resource procurement, supply chain financial product service tools, warehousing, logistics and distribution toolboxes of the Zhuo Steel Chain platform Provide one-stop integrated service solutions for other businesses.

Post time: Jan-13-2021