Turning My Steel Network-Luotiejun: Deepening Supply-Side Reform to Achieve High-Quality Development

"To achieve high-quality development, quality must be the first priority, and benefits should be given priority. Quality without benefits is unsustainable and unsustainable. "Luotiejun thinks. In 2015, the steel industry lost 84.7 billion yuan, and enterprises lost their ability to transform and upgrade and were unsustainable. In 2017 and 2018, the industry made significant profits. Some small steel mills that had been discontinued for many years began to resume production in various names. The relationship between supply and demand was unbalanced and profit margins continued to decline. In the first seven months of this year, national steel production increased by 9 %, and the sales revenue of steel association member companies increased by 9.75 %, but total profits fell by 23.93 %, showing a downward trend in volume increase prices. On the surface, it is the reason for the increase in iron ore prices. Deep down, it is still a question of supply and demand. The total amount is too large to lead to the decline in industry profits. The increase in iron ore prices is also caused by the total amount of competition.

Luotiejun believes that the beneficial development of the steel industry should grasp the following two points:
First, industry profits should be at a reasonable level. The profit margins of industrial industries are generally 5 % to 7 %, and the steel industry's profit margin in the first seven months of this year is 5.09 %; In 2018, it was 6.92 %, which was achieved with a 66 % debt ratio. In fact, the enterprise ton steel gross profit was more than 2,000 yuan. The steel industry is the industry with the most significant economies of scale. We can pursue high profits, but we can not use the reasonable profit margin of the general industry as the reasonable profit margin of the steel industry. 鈥淭he high profit margins in the steel industry in 2018 have led to an influx of investment into the industry. "In the short term, 2018 is the best year for the steel industry," Mr Luotiejun said. An unsustainable year in the long run. "
Second, environmental law enforcement should be non-discriminatory. Everyone believes that the good situation in the steel industry in the previous two years was due to the ban on "land strip steel". There is a certain reason. When we jump out of the industry, we actually benefit from the Environmental Protection inspectors and the battle for the blue sky. It has greatly squeezed the living space of environmental pollution companies. Therefore, the steel industry calls on governments at all levels to strictly enforce environmental laws and resolutely fight against pollution. This is an important guarantee to ensure that the steel companies can achieve effective growth.
Third, high-quality development should achieve green and sustainable development.
Luotiejun pointed out that at present, China's steel industry energy conservation and environmental protection into the world's advanced ranks, a large number of steel enterprises have reached the world's advanced level of energy efficiency. Ultra-low emissions are being vigorously promoted in the steel industry. Wastewater, sulphur dioxide and nitrogen oxides have reached the world's leading levels. A large number of steel companies have become clean factories, garden factories, and green factories.
Luotiejun pointed out that the total amount of steel in China is large, and the low emissions of individual enterprises are brought together, and the local environment is still difficult to withstand; The emission management in the factory area is good, and the unorganized emission management such as transportation outside the factory area is poor. The iron and steel industry is an energy-intensive industry. Energy consumption accounts for about 16 % of the entire industry. The "three wastes" pollution emissions are large, and it is an important source of industrial pollutants. With the development of the city, some steel enterprises are already in the core area of the city, and the environment is increasingly restricting the enterprises. "The pressure on the Beijing-Tianjin-Hebei, Yangtze River Delta and Fenwei Plain, where the total amount of steel is concentrated, has made it impossible for some steel companies in these areas to survive. It is imperative to promote the transfer of steel production capacity to the outside world. " he stressed.
Mr Luotiejun further points out that steel companies have made significant profits in the past two years, contributing more to local economic growth. In the face of downward pressure on the economy, the dependence of some places on the steel industry has increased. One-sided emphasis has been placed on the advantages of local development of the steel industry, ignoring coordination and green. For the central city, the quality of the environment, the level of urban construction, and the public service system are the basic factors that attract high and new talents and are the basic elements for the construction of high and new enterprises. When a city loses coordination and green, it is difficult to achieve innovation, openness, and sharing. Iron and steel companies can not be integrated with the city, only closure, transformation, relocation, why talk about high-quality development?
Luotiejun said that the next step, the steel industry should continue to actively respond to and strictly implement the country's "three-year action plan to win the blue sky defense war" and other policy requirements, in accordance with the "to promote the implementation of the iron and steel industry ultra-low emissions" to implement. We need to focus on the problem of short plates, step up investment, continue to organize key common technologies for energy conservation and environmental protection, and, with higher standards, speed up efforts to solve environmental protection problems in development.
Fourth, the development of high quality should realize intelligent manufacturing.
Luotiejun pointed out that the steel industry is a process industry with a high degree of automation. Intelligent manufacturing has a good foundation and large space. Intelligent manufacturing is an important means for realizing high-quality development of the steel industry.
Mr Luotiejun said the building of a manufacturing power placed higher demands on the quality of steel products and that steel companies needed to be transformed from a single material supplier to a material service provider capable of coordinating extended services such as material recommendation schemes and subsequent processing and use schemes. Making use of the advantages of smart manufacturing in reducing operating costs, improving production efficiency, improving product quality, shortening the innovation cycle, and promoting the development of new modes of business patterns is of great significance to fostering new drivers of growth in the steel industry and restoring new competitive advantages.
From the point of view of development, there are some differences between the depth of China's manufacturing and Internet integration and the advanced countries, but it is not very large, because this kind of integration is originally a matter of recent years. The manufacturing industry and the Internet in the United States are very strong, but many aspects of manufacturing are no longer in the country; The German manufacturing system is very strong, but the Internet is lacking; China's Internet is very strong, second only to the United States, China is the world's largest manufacturing country. "In terms of integrated development and smart manufacturing, the exploration enthusiasm and innovation spirit of Chinese companies and advanced countries in a starting line, the key is the concept. "Luotiejun believes that" we must seize strategic opportunities and achieve high-quality development through breakthroughs in smart manufacturing. " "
Fifth, high-quality development should achieve a reasonable distribution of the steel industry.
Luotiejun pointed out that big progress is the characteristics of the steel industry, steel plant development and urban integration is a problem facing all countries. In recent years, the state and local governments and enterprises have taken a series of measures to ease the situation of "North Heavy South Light" in China's steel industry and the problem of over-concentration of production capacity in some regions. The relocation of some urban steel mills has solved the problem that steel mills are not compatible with urban development to a certain extent. The construction of a large number of coastal steel mills has solved the problem of high cost of long-distance transportation of imported mines, and the adjustment of major steel layout has achieved initial results.
Luotiejun further pointed out that the steel industry is currently relatively prominent two major issues: First, the Beijing-Tianjin-Hebei and surrounding areas, the density of enterprises is too high, heavy pollution weather frequently, production restrictions or even frequent shutdown, and there is an urgent need to transfer out. The second is about the way out of the city steel mills. For a group of steel mills that are already in the center of the city, it is imperative to plan the way out for these steel mills in the city. It is necessary to balance the overall location, environmental capacity, land resource value, tax share and other factors of the cities in which they are located, and to determine different ways to retain, close, transform and relocate.
Mr Luotiejun said that some major steel-producing provinces had introduced plans to adjust the steel industry, and some provinces and prefecture-level cities had also proposed plans to build 100 billion yuan steel industry clusters. While we expect it to have the desired effect, we are also paying attention to some new phenomena. For example, the relocation of steel companies in the region to the coast has become an increasingly convergent choice. According to incomplete statistics, the capacity of steel production in China's coastal areas has exceeded 260 million tons. A modest transfer of capacity to the coast is desirable, but a "swarm" of relocation to the coast needs to be considered in depth. The layout issue is an overall problem. We call on the relevant departments of the state to make overall plans and "make a national game of chess".
Sixth, high-quality development should enable society and workers to enjoy the dividends of reform and opening up.
"In the 70 years since the founding of New China, especially in the 40 years of reform and opening up, while the steel industry has provided iron and steel materials for socialist construction, the working environment for employees has continuously improved and their income has increased significantly. "However, some safety incidents still occur from time to time, and some jobs are operating in a bad environment. There is still a gap between employees 'income and expectations," Luotiejun pointed out. "
General Secretary Xi Jinping pointed out that from the perspective of distribution, high-quality development should achieve investment returns, enterprises have profits, employees have income, the government has taxation, and fully reflect their respective contributions according to the market. In fact, the general secretary for the high quality of the development of enterprises should give the answer, which is also the basic requirements for the establishment of enterprises.
Luotiejun suggested that the decision-making level of various steel companies should raise the relationship between dealing with Reinvestment and distribution to the height of the implementation of the starting point and the goal, so that the majority of employees can truly enjoy the dividends of reform and opening up, and continuously improve the income level of employees. Improve the quality of life; Through the progress of science and technology, we must gradually realize the intellectualization and unmanned of high-temperature, high-humidity and high-risk positions; By improving the performance of steel, more green products are contributed to the society.