In 2020, beneath the affect of particular elements such because the epidemic, China’s crude metal manufacturing exceeded the 1 billion ton mark for the primary time, and its share of world metal manufacturing rose to 57%. Whereas this unconventional high-speed progress has allowed the earnings of metal firms to rise, it has additionally triggered some chilly considering within the business.
On the twentieth, the ‘2021 (twelfth) China Iron and Metal Growth Discussion board was held in Beijing. Many business consultants stated right here that it’s essential to be soberly conscious that the fast progress of China’s metal business final 12 months was ‘irregular, and the event of the metal business nonetheless faces three main challenges comparable to quantity discount, low carbon, and security.
Metal is likely one of the metallic supplies with the widest utility vary and the very best recycling charge on this planet. The metal business typically represents the excellent power of a rustic or financial system. Yu Yong, chairman of the World Iron and Metal Affiliation and chairman of HBIS Group Co., Ltd., stated on the identical day that since 1996 when metal manufacturing exceeded 100 million tons, China has maintained the world’s first metal output for 25 consecutive years. Particularly prior to now 10 years, China’s metal output has persistently maintained greater than half of the world’s metal output.
Official information present that in 2020, China’s crude metal and metal output will attain 1.065 billion tons and 1.325 billion tons, a rise of seven.0% and 10.0% respectively year-on-year. In the identical interval, in keeping with the China Iron and Metal Affiliation, the obvious consumption of home crude metal reached a report excessive, a year-on-year improve of 9%; the efficiency of metal enterprises improved, and the important thing statistical metal firms realized a revenue of 207.4 billion yuan, a rise of 6.59% year-on-year.
Luo Tiejun, vice chairman of the China Iron and Metal Affiliation, stated frankly that the advance within the efficiency of the metal business in recent times is especially because of supply-side structural reforms and a collection of nationwide macro insurance policies to reply to the epidemic. However we have to be soberly conscious that this fast progress final 12 months was ‘irregular.
Li Xinchuang, Secretary of the Celebration Committee and Chief Engineer of the Metallurgical Trade Planning and Analysis Institute, additionally reminded that the present excessive progress in metal consumption needs to be handled calmly. It might make it harder to attain carbon emission discount targets, a brand new spherical of provide and demand imbalances, and overheated funding within the metal business. And the problem of useful resource safety has elevated.
At first of this 12 months, Huang Libin, director of the Operation Monitoring and Coordination Bureau of the Ministry of Trade and Data Know-how, stated that it’s essential to resolutely cut back metal manufacturing and can examine and formulate related work plans to make sure that metal manufacturing will likely be absolutely decreased in 2021.
Luo Tiejun identified that analysis has discovered that the present manufacturing capability of China’s metal can absolutely meet future demand, which has reached a consensus within the business. Sooner or later, the iron and metal business will give attention to growing funding in product high quality, low-carbon, inexperienced and clever elements to attain transformation and upgrading.
Carefully associated to quantity discount improvement is low-carbon improvement. China has beforehand proposed that it strives to succeed in its peak carbon dioxide emissions by 2030 and obtain carbon neutrality by 2060. The metal business is a key carbon emission business that every one international locations on this planet are being attentive to. Li Xinchuang identified that from a world perspective, the metal business straight emits 2.6 billion tons of carbon dioxide annually, accounting for 7% of the full emissions from the worldwide power system, exceeding the emissions of all highway freight.
As a rustic with the very best metal manufacturing on this planet, China’s strain is self-evident. Hu Wenrui, director of the Division of Engineering Administration of the Chinese language Academy of Engineering and academician of the Chinese language Academy of Engineering, identified that the metal business is the business with the biggest carbon emissions among the many 31 sectors of the manufacturing business, accounting for about 15% of the full emissions.
Specialists consider that, to be able to obtain the height of carbon in all industries, the metal business should ‘get forward.
Along with low-carbon and quantity discount improvement, many consultants reminded that China’s metal business is just too depending on international supplies for uncooked supplies, and measures have to be taken to make sure the security of the business’s improvement.
Hu Wenrui identified that in 2020, China’s iron ore imports hit a report excessive, and iron ore costs hit an 8-year excessive. The sharp rise in iron ore costs as soon as once more highlights the fragility and instability of China’s metal business industrial chain, particularly the uncooked materials provide chain, and severely restricts the steady and secure improvement of the metal business.
Luo Tiejun stated that the institution of an affordable iron ore pricing mechanism needs to be promoted via marketization and rule of legislation, in order that the framework conforms to the legal guidelines of the market. On the similar time, we should always focus our efforts to speed up the event of home and international iron ore sources, and improve the output of home ore as an essential means to make up for shortcomings; as well as, we should pay full consideration to the recycling and utilization of scrap metal sources.
Supply: GetNews, Foshan Hermdeco Metal Co., Ltd