On November 10, Li Xinchuang, Vice President of the China Steel Association and Dean of the Institute of Metallurgical Industry Planning, said at the "2018 (7th) China Iron and Steel Technology and Economy High-end Forum" that despite the recovery of industry profits, the pressure of capacity removal is still not small, there are many problems and challenges that can not be ignored, and even some of them have emerged. We should keep a clear mind and be vigilant against the impulse to expand capacity.

The data show that in the first three quarters of this year, the profit of the whole iron and steel industry increased 71.1%, the utilization rate of production capacity was 78.1%, and the growth rate was 2.7%. The total profit of the member enterprises of China Iron and Steel Industry Association reached 230 billion yuan, an increase of 86%. The sales profit rate was 7.5%, an increase of 2.88 percentage points, and the profit level of the industry returned to the average level of the industry.

In addition, in September this year, the average daily output of crude steel reached a new record high. 75% of the increase came from non-member enterprises, and the problem of excess iron and steel production capacity has not been thoroughly solved. From January to September, a total of 579 million tons of pig iron, 699 million tons of crude steel and 821 million tons of steel were produced nationwide, up by 1.19%, 6.07% and 7.21% respectively.

Xin Guobin, Deputy Minister of the Ministry of Industry and Information Technology, also said recently that the increase in profits in steel and other industries is a recovering increase due to the low price before, and can not be blindly optimistic. At present, some seemingly problematic problems and potential risks in China's industry may be overlapping resonances in some industries, resulting in increased complexity.

Li Xinchuang believed that the main reason for the soaring profits of the industry is to reduce production capacity and environmental protection. If we do not seize the current good momentum to optimize the structure, the industry will probably fall into a dilemma again. The next step is to establish a long-term mechanism to prevent overcapacity, deepen the structural reform on the supply side, and promote the transformation of the industry to high-quality development. At the same time, we should improve the industry standard system, give full play to the role of national and industry standards, and lead the industrial restructuring and transformation and upgrading with standard innovation.

Ma Li, chief analyst of Langer Iron and Steel Network, believes that although there is no stoppage policy in the heating season nationwide this year, and the country's steady growth in the fourth quarter, the work of repairing shortcomings in infrastructure is gradually launched, and the demand for construction steel is increasing, like the trend of nearly 1,000 yuan surge in the price of threaded steel in November last year, it is impossible to repeat this year.