This article is from WeChat public account:Guotai Junan Securities Research (ID: gtjaresearch), author: Guotai Junan steel team, cover from the visual China
The rise of China’s great powers, steel has contributed.
In 1949, China’s steel output was only 158,000 tons. Since 1996, China has been ranked first in global steel production and consumption for 23 consecutive years.
From the lack of steel and iron, to the world’s first, Chinese steel companies have established the world’s largest modern steel production system.
However, such a system has also brought deep concern to the people of the country. In particular, China’s iron and steel enterprises have long been “the north is strong and the south is weak”, which has deepened the environmental dilemma in the northern region.
The Guotai Junan Iron and Steel team recently released an in-depth report on “The vicissitudes of the past 70 years, where is the future – transformation and upgrading, the steel industry is expected to usher in the oligarchic era”, and share with us the latest status of the steel industry under the transformation – Nanqian And environmental protection, as well as the changing pattern of the national steel industry.
01 “Squid Circle” – the starting point of Beicai Nanyun
Determining the pattern of “Northern Strong South and Weak” in China’s steel industry is actually an iron ore endowment.
In terms of iron ore reserves, China’s iron ore reserves are concentrated in North China and Sichuan. In 2016, Liaoning, Hebei, and Sichuan iron ore reserves were 56.25, 26.59, and 2.702 billion tons, respectively, accounting for 28% and 13% respectively. , 14%.
▼ China’s North China and Sichuan regions have more iron ore reserves (100 million tons)
Data Source: China Industry Information Network, Guotai Junan Securities Research
Because of this, China’s iron ore production is mainly in Liaoning, Hebei and Sichuan. In 2018, the output of iron ore in Liaoning, Hebei and Sichuan was 1.32, 2.46 and 100 million tons, accounting for the total output of iron ore in China. 17%, 32%, 13%.
Among them, iron ore reserves in Liaoning area are mainly distributed in Anshan-Benxi area, iron ore in Hebei area is mainly distributed in Tangshan, Zhangjiakou, Chengde and Handan, and iron ore in Sichuan Province is mainly distributed in Panzhihua area.
Because China’s steel industry is dominated by its own iron ore in the early stage of development, China has built more steel production capacity in Liaoning and Hebei, forming a distribution of steel production capacity in North China and Hebei.
▼ China’s iron ore production in 2018 accounts for a large proportion in Nepal
Data Source: wind, Guotai Junan Securities Research
The capacity pattern of “Northern Strong South” has also determined that “Northern South Transportation” has become the most important among regions.