Recently, an industry body released a report using big data to analyze the trend of the steel market in 2020, which attracted the attention of the industry. In recent years, big data has been more and more widely used in the field of analysis, and the steel market has strong data characteristics. Whether it is the steel demand, specific varieties, upstream and downstream industrial chains, or even the impact of the COVID-19 outbreak on the steel market at the beginning of this year, the development trend can be explored through big data.

Through big data analysis, some industry insiders believe that in 2020, China's steel industry and steel market may show the following trends:

First, high performance, high technology, high quality of high-end steel will become the key to steel enterprises to open up the market. The rapid development of new materials has brought new opportunities for the steel industry. From the current situation, in the development of advanced basic materials, China's iron and steel enterprises have enough strong technical research and development strength, the original basic materials to carry out transformation and upgrading. For example, TISCO, Bensteel, Shougang and other steel enterprises have successfully produced the third generation of automotive steel, not only to meet the demand for lightweight vehicles, steel functions, properties and other aspects of innovation, but also to take this opportunity to open up new markets.

Admittedly, the development of iron and steel enterprises is always inseparable from high-end steel, iron and steel enterprises can only have a variety of advantages, in order to have differentiated competitive advantage. In recent years, serious on variety structure optimization and upgrading, taigang vigorously develop high temperature, high pressure resistance, corrosion resistance, leading Gao Qiangren unique products or products, can meet the national key project construction and the needs of the high-end equipment manufacturing industry, the department to establish a focus on in stainless steel, cold-rolled silicon steel, rail steel, Gao Qiangren steel products base, Constantly consolidate its leading position in the global field of stainless steel, and provide the whole industry with "TISCO experience" to enhance the competitive advantage by variety advantage.

Second, the achievement of market discourse power will depend on the sustainable development of steel enterprises. In the context of vigorously promoting the construction of ecological civilization, the road of sustainable development and green development has become the consensus of iron and steel enterprises, and is also the key to the transformation and upgrading of the steel industry. In recent years, China's iron and steel enterprises through reasonable planning of sewage discharge, upgrading and improving equipment, promote green development with science and technology, achieve ultra-low emissions, enhance the competitiveness of the international market, and have more say in the international market.

Third, whether it can conform to the market trend will be the "touchstone" to test the intelligent manufacturing of steel enterprises. Intelligent manufacturing has an important impact on the development of the industry, the pattern of division of labor and the formation of new modes of production, industrial forms and business models, and has become a new competitive advantage of the steel industry in the future. The value of intelligent manufacturing in iron and steel enterprises is reflected in its ability to help enterprises adapt to the changes of market trends, realize the transformation to personalized customization and manufacturing service, and meet the personalized needs of customers.

Fourth, from the direction of the flow of steel market products, the direction of industry concentration should be measured in the economic zone. Data showed that the concentration rate of China's steel industry was only 35.3 percent in 2018. Low industry concentration has become an obstacle to the high-quality development of China's iron and steel industry, which, to a certain extent, restricts the improvement of international competitiveness of China's iron and steel enterprises. Some insiders point out that from the situation of China's steel market, steel enterprises in North China have 57.8% of the steel in the local market sales, accounting for 88.82% of the market share in the region; Steel companies in East China sell 82.06% of their steel products to the local market, while North China, Northeast China and Central China each sell about 40% of their steel products to East China. It can be seen from the product flow of each region that the steel products basically flow to the East China market in a certain or even a large proportion, which indicates that the direction of the improvement of industry concentration should be measured in the economic zone.

Fifth, the combination of time and present to hedge risks has become an indispensable means for market participants. Since 2018, due to the influence of coal import policy and normalization of environmental protection production limit, the fluctuation range of steel raw material prices has increased, and the stable operation and high-quality development of steel enterprises have faced certain challenges. Therefore, more and more steel enterprises participate in the futures market, using futures tools to achieve stable income. Since the beginning of this year, affected by the COVID-19 epidemic, problems such as weak steel demand, rising inventories and falling steel prices are more prominent, and it is difficult for steel enterprises to withdraw funds. Part of the iron and steel enterprises under the pressure of the epidemic successfully break through, which is inseparable from the rational use of futures tools.

China Metallurgical News (7th Edition of 7th Edition on 7th July 2020)

Source: China Metallurgical News