Iron and steel industry in 2015 will present the following characteristics:1. crude steel weak growth continues.Macro economy continues to slow down, demand for power is insufficient, crude steel growthcontinue to weak.However, some provincial and municipal backbone state-owned iron and steel enterprisescontrolled release rate capacity, should be under the control of the "visible hand" of governmentdepartments of administrative interference, production reduction and production halts will affectlocal taxes, so the production and business operation difficulty is much more heavier.2. downturn steel composite index continues.At the end of February, steel association CSPI steel composite price index was 75.06 points, fell2.07 points, a 2.68% decline; Fell 21.40 points, the decline of 21.92%.New GDP fell 390 billion yuan this year, more moderate effects on steel demand. First predictedsteel composite index continued downturn is a foregone conclusion, hong kong-listed steel pricelack of warm and warm; Secondly indicated that won't happen bigger shock, little changesoccurred "roller coaster" type; Again suggest overall keep last year prices are low and waverunning state; Finally indicated that continue to intensify the pressure on the industry profits, theasset-liability ratio is high, the efficiency loss of enterprises "worse".3. industry differentiation.This year, the steel industry to implement the "state council on further optimization of enterprisemerger and reorganization of the market environment of opinions and new environmental rulessuch as" New Deal, the external pressure, the differentiation of the operating conditions of alreadymore and more obvious, unreasonable regional layout, unreasonable structure, reform itself doesnot reach the designated position of the enterprise facing the survival situation more difficult,especially a continental enterprises face greater pressure. This means that it will accelerate thedifferentiation and reorganization of in the industry.4. price competition focuses on high strength product.Currently Ⅲ, Ⅳ and above high strength rebar share has reached more than 80% in the nationalmarket; For the shipbuilding industry, the proportion of high strength ship plate is obviouslypromoted, and usage year-on-year growth of 59%, accounted for more than 53%; Car, containerand other traditional manufacturing steel demand also are moving in the high strengthdevelopment. Among them, the 2014 national rebar output reached 215.2 million tons, with thenarrowing of space, rebar production enterprises in the high strength steel and seismicreinforcement of price competition will come into a period of unusually grisly; And some plateproduction enterprises, seamless steel pipe and erw steel pipe enterprises accounted for biggerspace, the high strength product price competitive level or better than that of rebar. At the sametime, the focus of the price competition in the market is to long in the field of high strengthmaterial and plate products.5. the development strategy adjustment is in the critical period.Experts have noted that the most terrible, the most fatal error, is the strategic choice mistake.For all of our steel companies, regardless of corporate ownership and size, to fully understand themeaning of the whole national economic development new normal, unify own actual situationseriously study the effects of the new normal and opportunities, to adjust development strategy intime.China's economy has experienced the first big opportunity characterized by the expansion of the

quantity over the past 30 years, after entering the new normal, will usher in the second majoropportunity characterized by quality promotion. We must seize and make good use of theeconomic development of China's second big opportunity to preempt the new opportunity thedifferentiation of enterprises and industrial layout adjustment brings, to seize the new opportunitythe iron and steel industry and related industry policy change brings, to seize the new opportunitynational new economic layout adjustment brings new opportunity, and to seize the newopportunity the international economic integration brings. Take the "four" new opportunities forthe total power, leading the enterprise internal transformation, production, management elementsto speed up the ability of innovation and product structure adjustment, climbing to get through thetough problems.