Panzhihua Steel's production and operation maintained stable operation in the first half of the year

As of June 30, Panzhihua Iron and Steel concentrate, titanium concentrate, vanadium, titanium and other major products have completed the "double more than half" target, production and operation remained stable in the first half of the year, achieving positive operating profits. Among them, the output of iron concentrate exceeded the target by 250000 tons, titanium concentrate by 76000 tons, steel by 251000 tons, and steel, vanadium products, titanium slag, sponge titanium and titanium dioxide by more than half.

Since the beginning of this year, in the face of the grim situation of continuous decline in the iron and steel industry, Panzhihua Iron and Steel Co., Ltd. has thoroughly studied and implemented the spirit of the 20th CPC National Congress, adhered to and strengthened the overall leadership of the Party, and in accordance with the decision-making arrangements of Angang Group, adhere to the development thinking of "stable production in mines, refinement in general steel, special steel in special steel, priority in vanadium and titanium, and capable related industries", firmly promote the five key tasks, firmly grasp the six key tasks, and release the effectiveness of the reform in an all-round way. Keep pace with the times and achieve the ultimate cost reduction to ensure the completion of the goal and task.

Strong guarantee of production control. In accordance with the principle of "balance, stability, economy and high efficiency", we should strengthen process control and factor guarantee, do a good job in the stable and smooth operation of blast furnaces, the production of iron concentrate and titanium concentrate, and the proportion of high-end sponge titanium products, and firmly do a good job in production and management. ensure the achievement of the target task. In the first half of the year, the utilization coefficient of blast furnace in Panzhihua Iron and Steel Co., Ltd. reached 2.6, an increase of 0.3 over the same period last year, and the iron output increased by 417000 tons compared with the same period last year. The output of vanadium products, titanium dioxide, sponge titanium and titanium increased by 3.2%, 1.0%, 22.9% and 130.1% respectively compared with the same period last year, of which high-end sponge titanium accounted for 28.0%, an increase of 3 percentage points, and vanadium accounted for 20.7% in non-steel applications.

Cooperate to reduce the cost and tap the potential. Strictly implement the "Panzhihua Iron and Steel Co-operation cost reduction work Plan", comprehensively promote cross-process and cross-unit cost reduction, and deeply tap the potential of pig iron, procurement and logistics. In the first half of the year, Panzhihua Iron and Steel Company completed a cost reduction of 1.75 billion yuan, with a completion rate of 120%, of which the optimized technical and economic index was reduced by 10.0 yuan, with a contribution of 57%. The logistics cost of supply, production and sales has been reduced by 390 million yuan, a decrease of 12%. The purchase volume of General Coal Mine exceeded the schedule target by 480000 tons and the cost was reduced by 55 million yuan. The proportion of coal procurement on the southern line reached 61.5%, an increase of 10.5% over the same period last year, supporting logistics to reduce costs by more than 90 million yuan.

Marketing leads to expand the market. Scientifically study and judge the market trend, flexibly adjust marketing strategies, seize the convergence of contracts, and ensure that the production and sales rate reaches 100%. Actively develop the southwest market and increase the proportion of direct supply customers. Vigorously promote the four major structural adjustments of production lines, varieties, regions and channels, and strive to achieve high-quality marketing development. In the first half of the year, the sales of strategic varieties of Panzhihua Iron and Steel Company accounted for more than 50%; the sales of hot rolling, cold rolling, coating, rod and wire rod and special excellent steel exceeded the target of 606000 tons in the core market; the market share of plates in the southwest reached 41%; the cumulative export volume of special steel, heavy rail, vanadium pentoxide and ferrovanadium increased year on year.

Deepen reform and stimulate vitality. We will continue to deepen the professional integration work, and complete the integrated management and control reform of vanadium in Panzhihua Iron and Steel Co., Ltd., Xichang Steel, and other relevant units of Pu Steel, and the integration of special steel sales resources. The actions of world-class enterprise building and value creation have achieved remarkable results, and all key tasks have been implemented in accordance with the plan. The reform special project plays a prominent role. Chengdu Materials Institute was rated as a "benchmark" in the special assessment of "scientific reform demonstration enterprises" of the State-owned assets Supervision and Administration Commission in 2022, ranking 32th among 274 enterprises as a whole. The compliance action has been implemented, and the completion rate of the system training plan is 100%. The reform of the three systems has been carried out in depth, and all key tasks have been carried out steadily in accordance with the target plan of "more than half time and more than half tasks". 293 management posts have been reduced, accounting for 79% of the annual target; 62 managers competed for posts, accounting for 76.5%; 49 were adjusted and incompetent to withdraw, accounting for 4%; 789 on-duty workers were optimized, 228 were market-oriented, and 67% of the annual target was achieved. Reduce the number of cooperative workers and 51.28 million yuan, achieving the annual target ahead of schedule; strengthen the application of post performance evaluation results, and the income gap of managers at the same level is more than twice.

While firmly grasping production and management, Panzhihua Iron and Steel Company has focused on key areas such as scientific and technological innovation, transformation and upgrading, party building, co-building and sharing, and pushed forward all kinds of work according to the target schedule, providing strong support for accomplishing the target tasks in the first half of the year.

Winning the second half is the key to achieving the goal for the whole year. Panzhihua Iron and Steel Co., Ltd. will continue to promote the efficient connection of production, supply and marketing. The production system insists on stability first and continuously improves the technical and economic indexes such as blast furnace utilization coefficient and comprehensive coke ratio. The sales system makes every effort to do a good job in the market development of titanium materials, the adjustment of the variety and structure of general steel, the connection of heavy rail contracts and so on. The financial system continues to deepen benchmarking management, do a good job in the management and control of key cost links and key elements, and break down the inventory pressure drop target in the second half of the year with the goal of "the growth rate of 'two funds' is not higher than that of revenue growth". All units comprehensively deepen their working procedures to achieve the ultimate cost reduction, find gaps, set measures, and catch up quickly, and fight one battle after another, one pass after another, to ensure the realization of the goals and tasks for the whole year.