Recently, reporters learned from the third quarter information conference held by the China Iron and Steel Industry Association that as of the end of September, 34 enterprises have completed the entire process of ultra-low emission monitoring and evaluation with a production capacity of approximately 179 million tons of steel, and have made it public on the website of the Association. 23 enterprises have completed partial ultra-low emission monitoring and evaluation with a production capacity of approximately 129 million tons of steel.
    This is a new progress made in the green and low-carbon development of the steel industry. From the perspective of the effect of energy conservation and emission reduction, in the first three quarters, the total energy consumption of the iron and steel enterprises of the China Steel Association decreased by 4.10% year on year, the total amount of discharged wastewater decreased by 21.46% year on year, chemical oxygen demand decreased by 23.10% year on year, sulfur dioxide emissions decreased by 19.48% year on year, particulate matter emissions decreased by 19.17% year on year, and nitrogen oxide emissions decreased by 11.69% year on year.
    Since the beginning of this year, the operating environment of the steel industry has been relatively severe, and the production and operation of enterprises are facing increasing challenges. The industry has overcome difficulties and remained relatively stable overall.
From the production situation, in the first three quarters, the cumulative steel production in China was 781 million tons, a year-on-year decrease of 3.4%; The production of pig iron reached 656 million tons, a year-on-year decrease of 2.5%; The steel production reached 1.006 billion tons, a year-on-year decrease of 2.2%.
    From the perspective of steel prices, the average value of China's steel price index in the first three quarters was 126.90 points, a year-on-year decrease of 11.42%. From January to April, there was a slight increase, while from May to July, it continued to decline and stabilized in August and September.
    From the perspective of economic benefits, in the first three quarters, the member steel enterprises of China Steel Association achieved a revenue of 4866.7 billion yuan, a year-on-year decrease of 9.27%; The operating cost was 4526.1 billion yuan, a year-on-year decrease of 4.69%; The total profit was 92.8 billion yuan, a year-on-year decrease of 71.34%. Although the economic benefits have significantly decreased year-on-year, the management and financial expenses of steel enterprises have continued to decline, with research and development expenses increasing by 11.9% year-on-year. The overall asset condition of the industry is relatively good.
    It is understood that the total profit of steel enterprises decreased significantly in the first three quarters, which is directly related to the industry's pressure from both the market and costs, as well as factors such as a high base last year. On the one hand, the overall downstream demand for steel is weak, driving steel prices to continue to decline, especially in the real estate market, which is the main steel industry, experiencing a decline that exceeds expectations, leading to weak market expectations; On the other hand, the price of coal and coke remains high. According to statistics from the China Steel Association, the procurement cost of coking coal for key steel enterprises increased by 51.1% year-on-year, while the procurement cost of injection coal increased by 40.3% year-on-year. Although the procurement cost of imported iron ore decreased year-on-year, it is still higher than the same level in 2019 and 2020; The logistics costs of steel enterprises have also significantly increased, increasing the cost pressure on enterprises.
    With the recovery of China's economy and the improvement of market expectations, the national daily steel production in August and September has rebounded month on month, and the overall operation of the industry has remained relatively stable, with a trend towards stability and improvement. "Qu Xiuli, Vice President and Secretary General of the China Steel Association, said that in the later stage, with the implementation of the national economic stability package policy and the formation of more physical workload, the national economy continues to recover and develop, The demand for steel is expected to improve on the current basis.
    The steel industry needs to shift from relying on economies of scale to winning through a 'variety structure', and there is still considerable market growth for some high-quality steel products. Qu Xiuli said that steel companies should actively adapt to market changes and improve their profitability by increasing the high value-added products required by the market. At the same time, strengthening industry self-discipline is crucial, and some enterprises still need to strengthen their efforts in "production based on sales, production based on efficiency, and sales based on cash".
    "CISA will continue to strengthen the close cooperation between enterprises, industries and the government, actively explore and establish a new mechanism for capacity governance under the new development environment as soon as possible, optimize the policy environment, vigorously promote the industry's joint restructuring, and constantly improve the industry's concentration ratio." Shi Hongwei, Deputy Secretary General of CISA, said that capacity replacement, ultra-low emissions, and extreme energy efficiency are three major steel transformation projects covering the whole industry, and will continue to be promoted.
    How to ensure high-quality completion of ultra-low emission transformation work in the context of a significant decline in corporate efficiency? Huang Dao, Deputy Secretary General of China Steel Association, introduced that in accordance with the requirements of the "Opinions on Promoting the Implementation of Ultra Low Emissions in the Steel Industry" issued by five ministries including the Ministry of Ecology and Environment, the national steel industry aims to complete more than 80% of production capacity transformation by the end of 2025. As of the end of October this year, approximately 400 million tons of production capacity have basically completed the entire process or some processes of ultra-low emission transformation, with an investment of over 150 billion yuan. According to calculations, the investment per ton of steel in ultra-low emission transformation varies among various steel companies, ranging from nearly 200 yuan to about 600 yuan. In addition, operation and maintenance costs will also increase, bringing significant pressure to the operating costs of enterprises in the current market.
    Green development is a continuous proposition for the steel industry, and we must steadfastly promote ultra-low emissions. We need to reduce engineering costs by promoting the application of advanced common technologies, strive to reduce subsequent renovation investment, and help industry enterprises complete their target tasks on time. (Economic Daily)