Cold is not enough to fear, spring will eventually arrive—— Interpretation of the Spirit of the Third Quarter Work Conference of Rizhao Iron and Steel Group


Currently, the steel industry is experiencing a new round of long downward cycles, with prominent supply-demand imbalances throughout the industry, and many steel companies facing the test of life and death. In this situation, every steel worker urgently wants to know where the confidence to overcome difficulties comes from.

Faced with risks and challenges, challenging performance indicators and annual target tasks, and the expectations of the entire group of cadres and employees, the third quarter work meeting of Rizhao Iron and Steel Group in 2023 analyzed the "time and trend" faced by the enterprise. Hou Jun, Secretary of the Party Committee and Chairman, emphasized the need to strengthen confidence, abandon illusions, and strive to take the lead, coordinate and grasp the "closure" of various annual tasks, unite and strengthen the foundation, work together to fight the cold winter, and strive to create a new situation of "striving for the top and walking ahead", in order to seize the opportunity for Shangang Group to enter a higher quality "development zone" as soon as possible.

Due to factors such as high raw fuel prices, less than expected demand recovery, and limited independent production reduction efforts by steel mills, the imbalance between supply and demand in the steel industry has been prominent since the beginning of this year. Production cannot be reduced, demand cannot be raised, prices have fallen, costs have risen, and profits have declined. The overall operating situation of the entire industry is even more severe than last year.

On October 18th, the China Iron and Steel Industry Association held a symposium on the economic operation of some steel enterprises in the third quarter. From the information conveyed, firstly, the contradiction between supply and demand in the industry is still quite severe; Secondly, the industry's profitability is relatively low; Thirdly, the prices of raw materials and fuels such as iron ore remain high; Fourthly, the industry still faces some urgent policy issues that need to be addressed.

Faced with issues such as weak economic recovery momentum, insufficient market demand, and prominent contradictions in the fourth quarter, relevant national fiscal, monetary, and industrial policies are gradually being introduced, and the effects of various growth stabilization measures are gradually showing. The domestic macro economy is stabilizing and improving, and the supply and demand situation in the fourth quarter will improve. The operation of the steel industry is expected to remain stable.

On August 25th, the Ministry of Industry and Information Technology and seven other departments issued the "Work Plan for Stable Growth in the Steel Industry", proposing to support steel enterprises in deepening upstream and downstream cooperation mechanisms with key steel industries such as ships, agricultural machinery, and heavy equipment, and accelerating the research and development and promotion of new materials and varieties. Shandong Province will also introduce a three-year action plan for the high-quality development of the steel industry, which is conducive to boosting industry confidence and improving the development environment.

Tang Zujun, a member of the Standing Committee and Vice President of the China Steel Association Party Committee, stated that the country has introduced a series of policies to stabilize the economy, mitigate risks, and promote consumption. Steel enterprises actively adapt to market changes, continue to carry out benchmarking, tap potential, reduce costs, and increase efficiency work, have strong risk resistance capabilities, and the overall economic operation remains stable. This is the confidence, energy, and motivation for steel enterprises to rise up in adversity.

Faced with industry changes, Rizhao Iron and Steel Group accurately analyzed the situation, and on the basis of coordinating the optimization of industrial layout, upgrading of product structure, intelligent manufacturing, and green and low-carbon transformation, it made a timely deployment of "survival protection" work in the first half of last year, with fast action, detailed measures, and effective results; Focusing on weaknesses, directly addressing pain points, adhering to problem oriented, goal oriented, and result oriented approaches, delving into the root causes of problems, researching solutions, and adapting to multiple challenges. The ability to fight the market has been significantly enhanced, the resilience of production and operation has been significantly enhanced, and the joint force of unity has been significantly enhanced.

Since the beginning of this year, we have anchored the goal positioning of "competing for the top and moving ahead", strengthened the group's awareness of "accounting" management, adhered to the principle of "setting standards to force, controlling models, refining and correcting deviations, and addressing strengths and weaknesses", comprehensively promoted the "one person, one table" approach, and used the "certainty of hard work" to hedge against the "uncertainty of the external environment". Production and operation have maintained a relatively stable overall situation under strong pressure.

At the third quarter work meeting, Rizhao Iron and Steel Group responded to the "time and trend" and proposed: it is necessary to find a position in adapting to the trend of the times, in keeping with the industry trend, and in grasping the torrent of reform. Under the overall deployment of Rizhao Iron and Steel Group, the strength of cadres and employees is gathering and their confidence is firmer. This confidence comes from the gradual strengthening and increasing resilience of the steel body in Rizhao after the reform and attack, from a comprehensive, sufficient, and objective analysis and judgment of the market situation, from the gradual improvement of the political ecology, and from the increasing experience, ability, and confidence in dealing with difficulties and challenges. It comes from the cadre and staff team who dare to fight hard battles, are good at winning battles, are not defeated, and cannot be defeated.

In the third quarter, various units affiliated with Rizhao Iron and Steel Group seized the market, practiced internal skills, and improved quality and efficiency in the survival and defense battle, showcasing their energy and spirit, surpassing themselves, and gaining courage and confidence.

Rizhao Iron and Steel Co., Ltd. Laiwu Branch has deepened the work pattern of "four transformations, four sudden changes, and eight poles" in accordance with the overall requirements of "achieving the extreme and moving towards the forefront", and has steadily transformed its business model. Overall performance has remained profitable, and internal potential has been tapped to reach new heights. In the fourth quarter, we will focus on improving production, reducing costs, controlling costs, and increasing efficiency, and spare no effort to complete the task.

The cost reduction effect of Rizhao Company is significant, the optimization of product structure and efficiency increase continue to work hard, and the effect of saving iron and increasing steel is significant. In the fourth quarter, we will adhere to the work concept of "maximizing internal production, reducing costs, and increasing efficiency, and enhancing external cohesion to increase the purchase and sales price difference", and strive to win the turnaround battle in the fourth quarter. The person in charge said, "We cannot change the market, but we can change ourselves. Next, we must continue to maintain a decisive sprint momentum, with unwavering drive and momentum, strive to complete the annual task goals, and welcome the arrival of spring with confidence

Rizhao Iron and Steel Group, Rizhao Iron and Steel Real Estate, Zibo Zhanggang and other units have collaborated to develop and implement loss reduction plans, strictly control expenses, fully reduce losses, and promote high-quality transformation and development.

Shandong Refractory, Rizhao Iron and Steel Mining, Shanxin Software, Rizhao Iron and Steel International Trade, Rizhao Iron and Steel Finance, Rizhao Iron and Steel Capital and other diversified sectors are based on profit growth, with numerous highlights of reform and development, injecting surging momentum into the severe steel market. The heads of multiple units expressed confidence in Rizhao Steel's ability to overcome difficulties, achieve quarterly and even annual goals, and achieve high-quality development by striving for excellence and leading the way.

It is understood that in the third quarter, Rizhao Iron and Steel Group strengthened research and analysis on five types of 251 policies, including increasing national and local assistance to enterprises and benefiting them, focusing on expanding effective investment, fully stabilizing foreign trade and foreign investment, and optimizing and improving supply quality. It established a normalized work scheduling mechanism for implementing preferential policies for enterprises, urged the effective implementation of various business support, fiscal and tax policies, and social security preferential policies, and ensured that policy dividends were fully realized, Accumulated policy incentives of 181 million yuan have been obtained, and it is expected to achieve policy efficiency of over 500 million yuan in the fourth quarter.

Without experiencing a cold and piercing bone

How can plum blossoms smell fragrant

In the current situation

The Power of All Rizhao Steelmen Together

It's iron, it's steel

Is the confidence to overcome all difficulties and obstacles

It will definitely be the next step

Better improve production and operational performance

Stepping into a higher quality 'development zone'

Laying a solid foundation

As long as we show the determination to burn our bridges

Only the flag is the courage to seize

Confidence in winning without stopping until the goal is achieved

Keep an eye on January and work hard step by step

Strive hard, move forward despite difficulties, and rise up to take the lead

Will definitely overcome the cold winter

Welcome a more vibrant spring