Steel shares suddenly bulk trading! The national development and Reform Commission and the Ministry of industry and information technology will organize a nationwide "look back" inspection on steel de capacity and crude steel output reduction in 2021, the website of the national development and Reform Commission said on April 1.
According to the two departments, the reduction of crude steel output in 2021 will adhere to the principle of marketization and legalization, distinguish the situation and give classified guidance, focus on reducing the crude steel output of enterprises with poor environmental performance, high energy consumption and relatively backward technology and equipment, avoid "one size fits all" and ensure the year-on-year decline of national crude steel output in 2021.
Affected by this news, the steel plate rose in the afternoon of April 1, and many stocks such as Valin steel and Xinyu steel rose by the limit. The steel ETF (515210) once rose by more than 4%.
It is divided into three stages, focusing on five aspects
Since 2016, in accordance with the decision-making and deployment of the Party Central Committee and the State Council on deepening the supply side structural reform of the iron and steel industry, all parties concerned have continued to promote the de capacity of the iron and steel industry, and the operation and structural adjustment of the industry have shown a good trend and achieved remarkable results. However, some deep-seated contradictions in the industry have not been fundamentally solved, and with the improvement of the efficiency of the iron and steel industry, some places and enterprises have the impulse to blindly build iron and steel projects, so consolidating the achievements of de production is facing new challenges.
"Looking back" on steel de capacity will focus on checking the implementation of steel de capacity work and rectification in relevant regions since 2016. The first is to resolve the overcapacity of iron and steel and crack down on the shutdown and withdrawal of smelting equipment involved in "strip steel". Second, the construction and operation of iron and steel smelting projects. Third, the implementation of rectification of problems found in previous inspections. Fourth, the verification and rectification of reporting clues. The fifth is to carry out the work of the leading group to resolve overcapacity. Sixth, carry out the reduction of crude steel output in 2021.
The inspection is carried out in three stages. One is the stage of self-examination and self correction. All provinces (autonomous regions and municipalities) organize and complete the work of "looking back" in their own regions. The relevant member units of the inter ministerial Joint Conference shall timely organize on-the-spot guidance.
Second, on-site inspection. After the completion of the self inspection and self correction work, a number of on-site inspection teams will be formed by the relevant member units of the inter ministerial joint conference to carry out on-site inspection.
The third stage is the summary report stage. According to the situation of self inspection, self correction and on-site inspection in relevant areas, a summary report shall be formed and submitted.
Ensure effective reduction of production
According to the data released by the national development and Reform Commission on April 1, 89 key statistical iron and steel enterprises from January to February achieved sales revenue of 939.67 billion yuan, a year-on-year increase of 53.16%; realized profit of 39.702 billion yuan, a year-on-year increase of 160.36%; sales profit margin of 4.23%, a year-on-year increase of 1.74 percentage points.
Ma Jinlong, steel industry analyst of Zhejiang securities, believes that the steel industry is the second largest carbon emission industry in manufacturing industry, which is crucial for the whole society to achieve carbon peak and carbon neutralization. From the past data, the total carbon emissions of the iron and steel industry is significantly positively correlated with the output, and the steel production base is large, so the primary task to achieve carbon peak is to control the output.
Ma Jinlong said that the implementation of the steel supply side reform in 2016 had a significant effect, the capacity was significantly reduced, and the industry fundamentals were reversed. However, under the stimulation of high profits, enterprises can improve the production efficiency of compliant capacity through capacity replacement and production technology. At the same time, there may be the phenomenon of illegal capacity. Since 2019, the steel production has reached a new high. Therefore, to ensure the effective reduction of production, the production capacity must be effectively controlled.
Haitong Securities Research Report that the Ministry of industry and information technology proposed to reduce steel production in 2021, steel prices rose sharply. In the second quarter of 2020, the profits of steel enterprises in the sector will be about 14.8 billion yuan, and 18.5 billion yuan in the third quarter, which is expected to be higher in the fourth quarter. In the first quarter of 2021, it is expected that the probability rate will continue to rise, which may be close to the highest single quarter net profit of 28.7 billion yuan in the fourth quarter of 2017. As of March 26, the market value of the steel sector is about 800 billion yuan, and the current steel valuation is still not high. Two ministries and commissions issue important documents
