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2020 Shanghai Steel Union New Year Group Visits Hubei Lidi Scrap
2020-02-24 15:53:21

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On February 20, 2020 (Thursday), the "Mysteel2020 National Scrap New Year Party-Hubei Lidi Special" was successfully held. The conference was hosted by Shanghai Steel Union E-Commerce Co., Ltd. ("Shanghai Steel Union", the same below). Up to 200 guests attended the conference.


The group meeting officially started at 14:00. The meeting was hosted by Xu Yanjun, Manager of the Scrap Department of the Steel Business Unit of Shanghai Steel Union, and welcomed the leaders who participated in the live broadcast and greetings in the Spring Festival. Then the meeting officially started.


First, Wang Fangjie, deputy secretary general of China Scrap Steel Application Association, and Li Mingbo, general manager of Hubei Lidi Machine Tool Co., Ltd. delivered speeches respectively.


Wang Fangjie said that in the case of public health emergencies, the China Scrap Application Association conducted some investigations on upstream and downstream enterprises in the scrap steel industry through telephone and internet during this period. In terms of steel mills, the consumption of scrap steel has been significantly reduced. The proportion of scrap steel processing enterprises returning to work is more than 20%. Most scrap steel enterprises will resume work from the end of February to the beginning of March. In response to the current difficulties of enterprises, the Association has proposed the following suggestions to government departments: 1. In terms of taxation, some preferential tax refund policies will be given to enterprises in terms of value-added tax; 2. In terms of import and export, it is possible to consider liberalizing some imported scrap steel. 3. In terms of financial credit, the social security and provident fund contributions of enterprises shall be postponed. Finally, I hope that the majority of scrap steel companies can, on the basis of ensuring the safety of epidemic prevention, do a good job in the follow-up work in a planned way, and jointly maintain the stable and orderly development of the market.


Li Mingbo said that in the case of public health emergencies, he would like to thank the leaders of the Scrap Association for their concern and greetings, and the company leaders for their telephone condolences. During this period, the company makes full use of Internet tools to improve the company system, strengthen management team building, and ensure the development of work. The company will proactively improve service work network guidance. In terms of new products, the development of new products should be problem-oriented, and continue to move towards refinement, intelligence, and environmental protection, and continuously improve product quality. In order to serve customers well, lay a solid foundation and welcome a bright future.


Then, Jin Xionglin, the editor-in-chief of scrap steel of the Shanghai Steel Union Steel Division, shared the review of the scrap steel market in 2019 and the recent predictions. In terms of prices, scrap prices are relatively high, and the price difference between thread and scrap has narrowed. As of February 19, the average price of scrap in 2020 is 2574.74 yuan/ton, and the average price difference between thread and scrap is 1,180.76 yuan/ton. In terms of steel mill profits, as of February 19, the profit of electric arc furnace steel mills in 2020 has further narrowed. According to the calculation of the electricity bill during the valley period, the profit per ton of steel has lost 32 yuan/ton. Finally, the scrap steel editor-in-chief Jin Xionglin analyzed the post-holiday market in terms of logistics, enterprise resumption of production and production, future price fluctuations of finished products, and environmental protection, and made predictions in terms of supply and demand: 1. Supply: waste production enterprises 1. Scrap steel recycling companies and scrap steel processing companies cannot resume work in the short term, and normal production is expected to be around mid-March; 2. Demand: Although the stocks are accumulated and forced to backlog, steel mills are under high sales pressure, which may curb the demand for raw materials, but consider Up to now, scrap stocks of steel mills can only be maintained for 12-13 days, and there is a need for replenishment, but the quantity is limited.


Then, from the perspective of Hubei Lidi Machine Tool Co., Ltd., the regional leaders and representatives of major enterprises exchanged views on how to resume work and ensure production in an orderly manner under sudden public health incidents:


Wang Rongtang, Sales Director of Hubei Lidi Machine Tool Co., Ltd.: 1. The company’s operations have been carried out in a safe and orderly manner. The management personnel and research institutes use online office. Sales will communicate and guide through conference calls. The short-term equipment delivery period is 20 Within days; 2. The research and development of new products has produced 1,600 tons of balers, and the scrapping and dismantling lines will be more standardized. The Lidi Smart Butler office system can be monitored by computers or terminals to improve the efficiency of the equipment and control the operation of the equipment benefit.


Sun Caiyuan, Regional Manager, North China Region, Hubei Lidi Machine Tool Co., Ltd.; 1. At present, some steel mills and scrap processing bases in Hebei are still in a state of suspension, logistics are restricted, and the transportation capacity of roads, terminals and ports is insufficient. It is still not possible to rework normally; 2. The production enterprises in Tangshan, Hebei implement a series of measures such as shifting production and commuting, reducing staff, reducing burdens, and reducing production. The local scrap steel base is still in the state of consuming inventory; 3. The company's sales services will not stop and will be effective Use Internet equipment and the company's smart housekeeping system to communicate online at any time.


Wuxi Jinqiu Machinery Co., Ltd. Wang Guochun: At present, the company has resumed work ten days ago, and various resumption work is ready. At present, in terms of resumption of work, prevention and control are done on the one hand, and work and production resumed on the other hand.


Hu Huayong, general manager of Sichuan Lidruiya Environmental Technology Co., Ltd.: Local companies in Sichuan have begun to resume work one after another, and some Sichuan logistics companies are also gradually recovering. The company will escort those companies that have resumed work. The user experience and after-sales service are placed on First of all, we will do our best to ensure the actual needs of customers. Internal employees have started working online, and the company will always maintain the service tenet of non-stop business and non-stop service.


Next, special guests from Hubei Lidi equipment manufacturers shared the current status of scrap steel:


Peng Haili, general manager of Shanxi Jinlijia: 1. There is short-term supply to Changzhi Iron and Steel, and the scrap price is acceptable, but short-term logistics and transportation are not smooth and delivery is difficult; 2. The scrap price of Shanxi local steel mills has fallen by 200 yuan compared with the previous year. /Ton, most enterprises in Shanxi have not yet resumed work. The expected resumption time is mid-March. The scrap market is not optimistic in the short term.


Chen Yubin, general manager of Dongguan Liuping Industrial: 1. The company has a monthly production capacity of 30,000 tons of crushed materials, and a production capacity of 10,000 tons of steel briquettes. Active preparations are being made for the resumption of work, and an application for resumption of work has been submitted to the government. Production can be resumed at the end of February; 2. At present, the supply of raw materials is not enough, and sales are under pressure. Both ends of the supply are more difficult. Most electric arc furnace steel plants in Guangdong are basically still in a state of suspension, and they will start in March. .


Yang Dong, general manager of Baoyu (Foshan): 1. Logistics problems, inter-provincial and intra-provincial transportation has not been fully liberalized. Reworkers from other places must be isolated for 14 days first. Short-term labor shortages are faced. The Guangdong market is expected to resume work in mid-March , The demand of steel mills and upstream and downstream trade transactions are also relatively sluggish, thinking that the short-term scrap price adjustment is not instructive to the market; 2. The current scrap steel processing volume is 60,000 to 70,000 tons, one part is scrap trading, the other is scrap stainless steel trading. Now the trade volume has been halved, and the later market mainly depends on the resumption of work in steel mills and downstream, and the resumption of labor in the downstream affects the production rhythm of steel mills.


Chen Gang, deputy general manager of Yichang Yimei: Due to public health incidents, the possibility of short-term resumption of work is relatively small. There are currently 13,000 tons of inventory. Egang and WISCO have orders, and delivery is in contact with logistics, but short-term logistics and transportation are still difficult The company is expected to resume work and production around March 19.


Lu Wenrong, general manager of Jiaxing Taozhuangcheng Mine: 1. Taozhuangcheng Mine officially started to resume work today, with 1,000 tons of goods arriving today, and more than 2,000 goods can be delivered every day at the end of February; 2. Jiaxing government implements a health code resumption of work and production mode, and the province has High-speed logistics is also gradually being liberalized, and enterprises are gradually resuming work and production; 3. In terms of scrap market, steel mills' finished product inventories are increasing. Electric furnace steel mills will not start operations too early in the short term. Scrap prices are expected to fall in March.


Xu Jianmin, general manager of Lanzhou Pengcheng: Workers are returning to work one after another. The steel mills in Shaanxi have fallen by 200 yuan/ton. It is expected that scrap prices in early May will gradually stabilize, and prices will be the same as in May 2019.


Zhou Lin, senior consultant of Taozhuangcheng Mine: 1. The impact of logistics is temporary, and follow-up logistics will gradually be lifted; 2. The labor force will be greatly reduced, and the labor force will be less. There will be large sales of scrap steel processing equipment, and scrap steel processing equipment will continue Make efforts; 3. Scrap steel processing enterprises should maintain their own inventory in marketing. It is expected that scrap steel prices will continue to rise after April.


Finally, Gu Minhua, deputy general manager of the steel business department of Shanghai Steel Union, reviewed the situation of the entire steel market in 2019 and the outlook for the steel market in the first quarter of 2020. On the whole, if public health incidents can be subdued in March, demand starts, and destocking speeds up, a strong rebound is expected in April and May. However, as prices rebound, steel mill supply will quickly recover, which will put pressure on the subsequent market. Raw materials such as iron ore, scrap steel, and coke have weakened demand due to the postponement of the resumption of steel production, and the downward trend is expected. After the holiday, the negative factors for steel and iron ore are strong. In addition, the price of foreign iron ore has fallen sharply, and iron ore may lead the decline, and it will suppress scrap prices.


So far, the "Mysteel 2020 National Scrap Steel New Year Meeting-Hubei Lidi Special" has been successfully concluded. At the same time, I would like to thank all the leaders for their sharing and support.


Let us unite and work together! We believe that the difficulties will eventually pass and the warm spring will come!


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