Steel companies face greater challenges in energy saving and emission reduction

China Iron and Steel Association recently disclosed that in May this year, domestic large and medium-sized steel companies realized sales revenue of 316.655 billion yuan, a decrease of 0.53% from the previous month in April, and a profit of 2.847 billion yuan after the offsetting of profits and losses, an increase of 1.32 times from the previous quarter. However, there are still 15 loss-making companies with a loss of 17.05% and a loss of 1.347 billion yuan, which is a 21.37% reduction in the chain. From the data of the first five months, the domestic large- and medium-sized steel enterprises of major steel companies realized a total sales income of 1,503.608 billion yuan, a year-on-year increase of 0.95%, but the realized profit fell 46.55% year-on-year to 1.754 billion yuan.

This is the first time that domestic key steel companies have achieved overall losses. In April, these steel companies once realized a profit of 1.16 billion yuan, but from January to April, they calculated that they still suffered a loss of 1.14 billion yuan, a year-on-year loss of 4.42 billion yuan.

In the first quarter of this year, the steel industry entered the most difficult stage of the new century. In the quarter, domestic key large and medium-sized steel companies realized a profit of RMB 2.329 billion, a decrease of RMB 5.604 billion year-on-year, and the cumulative loss reached 45.45%.

At that time, although steel consumption was in the off-season, steel production continued to increase, resulting in a sharp rise in inventories. The situation of oversupply in the steel market was particularly severe, resulting in a continuous decline in steel prices and a severe loss in the entire industry.

However, as the price of raw materials fell more than the decline in steel prices, some steel companies eventually seized the profit margin.

After entering June, steel prices showed some signs of stabilization, but Shenhua, Shanxi Coking Coal Group and other companies continued to cut coal prices, indicating that the downward pressure on the raw material market is still relatively large. It is expected that the profitability of steel companies will improve significantly in the second quarter, especially It is a plate production company's profits will be more substantial.

The National "Twelve Five-Year Plan for Energy Development" pointed out that by 2015, the country's total energy consumption will be controlled at about 4 billion tons of standard coal, and at the same time, the energy consumption per unit of GDP should be reduced by 16% from the end of 2010. At the 5th China Iron and Steel Energy Saving and Emission Reduction Forum held on the 28th, experts said that these objectives and tasks will be decomposed by all levels of government and ultimately passed on to each company. Enterprises are facing energy consumption intensity, total energy consumption and more stringent energy efficiency. The multiple assessments of standards will have greater challenges in the future.

“The first three years of the 12th Five-Year Plan have made positive progress and achievements in energy conservation, emission reduction and carbon reduction.” Li Xinchuang, dean and secretary of the Party Committee of the Planning and Research Institute of the Metallurgical Industry, quoted data saying that GDP energy consumption and CO2 emissions have decreased by 9.03% and 10.68 respectively. %, chemical oxygen demand, ammonia nitrogen, sulfur dioxide, and nitrogen oxides decreased by 7.8%, 7.1%, 9.9%, and 2%.

Among them, as the steel industry in the key energy-saving and emission control industries, the energy-saving and emission-reduction levels have increased significantly. The amount of SO2 per ton of steel, dust per ton of steel smoke, new water consumption per ton of steel, and wastewater discharge per ton of steel have all dropped drastically. The data show that in 2013, The total energy consumption per ton of steel in key statistical enterprises fell by 2.2% compared with 2010; as of April 2014, the comprehensive energy consumption per ton of steel fell by 2.4% compared with 2010.

In spite of this, to achieve the 12th Five-Year Plan binding goal, the situation is still grim and the task is arduous. In fact, the data from the steel industry shows that although the energy consumption per ton of steel continues to decline, the task of completing the energy-saving target still lags behind. As of April 2014, the progress in completing the “12th Five-Year Plan” energy saving target was 59%.

In Li Xinchuang's view, the next step for China's energy conservation and emission reduction faces many challenges. For example, the pressure on energy demand is still huge, and there are many constraints on energy supply. Energy production and consumption have caused serious damage to the ecological environment. At the same time, the overall energy technology level still lags behind.

Experts here disclosed that a number of energy efficiency standards have been revised or are under preparation, with higher thresholds and stricter requirements. Iron and steel companies will face multiple assessments and will face greater challenges in the future. The documents of the State Council have clearly stated that by the end of 2015, 15 million tons of outdated ironmaking capacity will be eliminated, and the steelmaking capacity will be 15 million tons. The total number of 40,000 cubic meters of sintering machines will be installed with desulphurization facilities.

“These are the hard battles faced by the steel industry and need to increase capital investment and technological breakthroughs.” Zhang Changfu, vice president and secretary-general of the China Iron and Steel Industry Association, pointed out that companies can no longer wait and see, they must complete the task of energy saving and emission reduction , Submit a satisfactory answer to the community.

Li Xinchuang reminded that the future urgency to cope with climate change will become stronger and more restrictive. Governance measures will also shift from a purely political and policy perspective to relying more on economic and market instruments. Economic, energy, environmental protection, resource development and development are more closely integrated.

“The unified national carbon market is under planning. Each company will receive a certain quota. If the amount of emission is not enough, it must be purchased from the market. Carbon emissions will effectively affect the economic efficiency of each company.” Li Xinchuang stated that both international and domestic At the level, companies have already issued long-term policy signals and companies must make corresponding preparations.