Reducing cost and increasing the profitability of steel enterprises "main event"
 
In the first half, Baotou profit of 1.76 billion yuan, ranking second in the industry, second only to Baosteel. Specific analysis for the following reasons:
 
First, thanks to the diversification of the industry. The Baogang have four plates of steel and non-steel, rare earth mining. Beginning last year, the rare earth sector become big profitability of Baotou Steel Group, more than 80% of its profit contribution rate. The first half, although the decline in the price of rare earth, but the profits of the Baotou Steel Rare Earth still accounted for the Baotou Steel profit of more than half.
 
Second, thanks to the diversity of product structure. The first half of the year, Baotou increase low-cost production resources to those destination, to ensure that the market is relatively smooth wire, bar, square steel production, increase the varieties of efforts to develop this part of the product at the same time, making this part of products to win customers with new varieties, small batch. Clad steel wire rods, square steel, hot-rolled wide strip, wind power, steel, wear-resistant steel, are the first half of the year, has won a certain market.
 
Starting from the second quarter, the domestic rail market started the Baotou to seize the opportunity to increase the heavy rail production of higher value-added, and a guarantee for the increase in profit.
 
Third, thanks to the the Baotou Steel unremitting efforts to carry out the reduction and efficiency activities, which is Baotou Steel achieved profitability is the most important thing. Two years ago, Baotou cost reduction and efficiency task accumulated more than 40 billion yuan, the beginning of this year, the task of cost reduction and efficiency throughout the year to 1.9 billion yuan. But with the deterioration of the market situation in the second quarter after Baogang original cost reduction and efficiency credits has not offset the decline in product prices caused by a huge "spread". Baotou Steel will drop this efficiency indicators doubled, and the starting point of the cost reduction and efficiency, from production to management. The first half of the year, Baotou Steel under the premise of maintaining the high proportion of production for mine control industry indicators improved by adjusting the charging system, the gas air flow and other technical means, blast furnace coke ratio continue downstream. Other effects of measures such as increased net load of the wagon, enhance heat and pressure utilization, reduce headquarters outside Beijing stock also appeared one by one. Recently, Baotou Steel held a meeting on the optimization of integrated finished product rate and energy consumption indicators, proposed technical and economic indicators as the starting point will be to optimize and improve the level of professional management, and reduce the cost of production of iron, steel. It is estimated that, if the finished product rate, overall energy consumption, iron and steel materials consumed three comprehensive data to reach the industry average, Baotou will have a drop of nearly 900 million yuan this space.



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