What Are the Parts of a Steel Production Line?

The iron and steel industry is an industrial industry mainly engaged in industrial production activities such as mining and processing of ferrous metals, and ferrous metal smelting, including metal mining, iron, chromium, manganese and other mineral mining, ironmaking, steelmaking, and steel processing industries. , Ferroalloy smelting industry, steel wire and its products, and other sub-sectors, is one of the country's important raw material industries. In addition, because steel production also involves other industrial sectors such as non-metallic mineral mining and products, such as coking, refractory materials, and carbon products, these industrial sectors are usually included in the scope of the steel industry.

steel industry

From January to November 2012, the cumulative sales revenue reached 3.244 trillion yuan, a year-on-year decrease of 5.37%; the realized profit was 66 billion yuan, a decrease of 5.737 billion yuan, and the profit and loss offset the profit to a loss of 1.97 billion yuan. Financial expenses increased by 24.38% year-on-year. At the same time, the corporate asset-liability ratio continued to rise, reaching 68.67% by the end of November, an increase of nearly 1.64 percentage points year-on-year. From January to November 2012, the national industrial added value increased by 6.8% year-on-year, and the growth rate dropped by 10.5 percentage points. The national real estate development investment growth rate dropped by 13.2 percentage points, especially the new housing construction area decreased by 7.2% year-on-year, compared with the same period in 2011 Up 20.5%. This suffices to show that there is insufficient demand in downstream industries, coupled with excessive steel production capacity, the contradiction between oversupply in the steel market is very prominent, and steel sales are extremely difficult. "As steel prices continue to fall, squeezing the profit margins of steel distributors, breaking the capital chain, further aggravating the market panic, and the industry's losses as a result.

The iron and steel industry operation situation released by the China Iron and Steel Industry Association on the day shows that from January to September 2013, the cumulative sales revenue of large and medium-sized iron and steel enterprises fell by 6.49% year-on-year. The loss-making enterprises' loss amounted to 26.726 billion yuan, a year-on-year increase of 41.5 times, with a loss of 45%. Losses in the steel industry continue to increase.

According to the data of the China Iron and Steel Association, from January to September 2013, China s apparent consumption of crude steel was 51,027,600 tons, a decrease of 9.73 percentage points compared with the same period. In the main steel industry, railway construction investment and real estate (new construction) development investment are negative growth. The total industrial output value (product output) of the machinery, automobile, and home appliance industries has weak growth or a large decline, and the weak demand in the steel market is not large. change. The low price of steel products and high fluctuations in the prices of raw materials have greatly reduced the profitability of enterprises.

At this stage, China is in the middle and late stages of industrialization development. There is a huge demand for steel, and the steel industry is facing a large market space. As shown in the figure below, during the first half of 2007-2011, China's steel industry assets and sales scale showed a steady growth trend. In the first half of 2011, China's steel industry's asset scale reached a total of 486.4 billion yuan, a year-on-year increase of 16.41%; the cumulative sales income reached 3,270,379 million yuan, a year-on-year increase of 28.96%.

On the one hand, the scale of China's steel demand continues to expand, but on the other hand, the Chinese steel industry as a whole is at a marginal level. The reasons for the decline in the average profitability of the steel industry are mainly excess steel capacity and rising ore prices.

On March 23, 2010, BHP Billiton and Japanese steel mills reached a quarterly pricing agreement, and the 40-year long-term association model was abolished. Chinese steel companies have been forced to accept pricing models such as quarterly pricing, monthly pricing, and spot pricing, and iron ore prices have continued to rise. In 2010, the three major mines realized a total net profit of US $ 48 billion, which is 3.5 times the profit of China's steel industry.

In the first half of 2011, the results announced by BHP Billiton, Vale and Rio Tinto show that the three companies achieved net profits of US $ 13.1 billion, US $ 13.3 billion, and US $ 7.6 billion, respectively, and again achieved great harvests. According to the National Bureau of Statistics, China s steel industry realized profits of only 80.5 billion yuan in the first half of 2011. The former is almost three times the latter. Due to the rise in iron ore prices, Chinese steel companies in the first half of 2011 spent more than US $ 16.017 billion on imported iron ore. Chinese steel companies need to accelerate the pace of iron ore constraints, steel companies need to accelerate the extension of upstream areas, while increasing overseas mining development efforts, in this regard, WISCO, Baosteel and other companies have achieved good results.

China's excess steel production capacity and irrational industrial structure are also the main reasons for the thin profit of the steel industry. During the "Twelfth Five-Year Plan" period, the iron and steel industry will eliminate 75 million tons of backward ironmaking capacity,

(1) Output hit a record high. From January to June 2013, the country's cumulative production

The main raw materials for steel production include iron ore,

Steel actuals (Steel actuals) are also known as steel physicals (Steelphysicals), which refers to physical steel products available for shipment, storage and manufacturing. The deliverable spot can be exchanged for cash on the spot or forward basis, or the goods can be paid in advance. The general name of the goods paid by the buyer within a very short period of time. Symmetry of steel futures.

In spot transactions, the transaction methods of one-handed payment and one-handed delivery are common, or a barter transaction method is adopted.

Spot transactions are generally applicable to the sale of agricultural and sideline products, small wholesale and retail transactions. In China, the spot transactions of retail enterprises generally adopt one-hand delivery and one-hand payment, and the silver and two goods are sold together. In the wholesale enterprise, spot transactions, in addition to one-hand delivery and one-hand payment, also adopt bank collection and commitment Way to settle within the time limit. The differences between spot trading and other trading methods are:

The purpose of the transaction is to obtain ownership of the goods.

In terms of transaction methods, it is generally conducted through one-to-one negotiation between the two parties, and it is not necessary to focus on a specific time and place.

The Commercial Press's "English-Chinese Dictionary of Securities Investment" explains: The steel spot English is: Steelactuals; Steelcash commodity. Also known as: physical steel. Products that have physical attributes in the process of commodity futures trading and can be actually delivered, such as steel, steel, gold, soybeans, etc. When trading, the seller should deliver to the buyer on the expiry date of the futures contract. In fact, many futures transactions that can deliver commodities have closed positions before the delivery day arrives, and there is rarely a spot delivery in the actual sense. Spot English is: spot; spot commodity. Spot under the merchandise concept. That is, the goods that can be delivered immediately are general commodities that can be traded on the market. The seller delivers it to the buyer at the conclusion of the transaction, and the buyer pays the purchase price. As opposed to trading commodities under futures contracts.