Market situation of steel metallurgical machinery industry in China in 2017

    In December 2015, the central economic working conference put forward the policy of "three to one reduction and one supplement" (to capacity, to stock, leveraging, cost reduction, short board), the supply side reform of high energy consumption and high emission industries, such as metallurgy, chemical industry, building materials, coal and so on, has increased significantly. According to the data of the National Bureau of statistics, in 2016, China's steel and coal production capacity dropped more than 65 million tons and more than 2.9 million tons, exceeding the annual target task. In 2017 1-7, the capacity of iron and steel has been completed, and the coal production capacity has reached 1.28 billion tons, and 85% of the annual target tasks have been completed. The effect of the supply side reform is obvious.

Part of the supply side reform industry in recent years, the overall profitability of listed companies (billion yuan)

  From the downstream industry profitability, coal, iron and steel, basic chemical industry, non-ferrous metals and building materials were basically seen in 2015. With the promotion of the supply side reform, in 2016, the profitability of the above-mentioned industries was generally restored, and net profit growth rate reached 846.65%, 116.41%, 52.74%, 398.22% and 57.97% respectively. In 2017, with the price of raw materials in the lower reaches of the lower reaches, the profit of each industry was further restored. The net profit of coal, steel, basic chemical, non-ferrous metal and building materials in the three quarter was 245.38%, 483.78%, 72.67%, 102.81% and 86.18% respectively.

    2016 is the first year of the supply side reform of the steel industry, and the central government has made clear that the target of "13th Five-Year" production capacity of the steel industry is 1.4 billion tons. In 2016, a total of over 65 million tons of crude steel production capacity were resolved, and the annual target task of resolving 45 million tons of crude steel production capacity was overfulfilled. By the end of 6 in 2017, China has completed the reduction of steel production capacity of 58 million 390 thousand tons, ahead of schedule in excess of the annual tasks, and the implementation of the supply side reform has increased significantly.

General price index of general steel (yuan / ton)

The construction rate of the main steel mill of the national rebar

    From the price point of view, since the reform of the supply side has been promoted, the price of ordinary steel has risen from about 2000 yuan / ton at the end of 2015 to about 4800 yuan / ton at present. The iron and steel industry has benefited from the national production capacity, especially in the first half of 2017, in which the "ground bar steel" was completely banned, the market order was further standardized and the production enthusiasm of the compliance enterprises was improved. In the three quarter of 2017, the production utilization rate of ferrous metal smelting and calendering industry was 76.7%, which increased by 4.4 and 1 percentage points respectively, which continued for the six quarter, the highest level since 2013.

Iron and steel industry overhaul increased significantly, the number of profitable steel mills increased significantly.

    In the first half of 2017, the state carried out a special cleaning and rectification of the "land strip steel". According to the statistics of the State Development and Reform Commission and the Ministry of industry and information, after thorough cleaning up and investigation, the first half of our country had banned and stopped more than 600 production enterprises of "ground steel", involving about 1.2 billion tons of production capacity. The smelting process of "geo steel" is generally the collection of steel scrap, which is poured into the geosyncline or steel trough after the melting of the industrial frequency furnace (or intermediate frequency furnace), and solidified into a steel billet of about 1.2 meters in length.

    Steel smelting machinery includes iron smelting blast furnace and its supporting machinery (including blower and other turbine machinery), steelmaking flat furnace and converter, arc furnace, furnace refining equipment, ingot equipment and metallurgical vehicles. At present, there are two main steelmaking methods in China, namely blast furnace / converter steelmaking and electric furnace steelmaking. BF / BOF steelmaking is a long process, while EAF steelmaking is a short process, with recycled scrap as raw material.

    The electric furnace steelmaking equipment includes electric arc furnace, induction furnace, electroslag furnace, electron beam furnace and self consuming arc furnace. According to the frequency of power supply, the induction steelmaking furnace can be divided into three types: high frequency furnace, medium frequency furnace (150-8000Hz) and power frequency furnace (50-60Hz power supply).

    With the cleaning of the strip steel and medium frequency furnace, the demand for steelmaking in converter and electric furnace is raised, the utilization ratio of steel smelting capacity is raised and the necessary equipment for smelting related (such as turbine machinery, waste steel treatment equipment), industrial gas (oxygen, nitrogen, etc.), graphite electrodes and so on are required.