1. Overview of Steel Structure Industry

1. Definition and classification of steel structure

Steel structure is a structure made of steel materials and is one of the main types of building structures. The structure is mainly composed of steel beams, steel columns, steel trusses and other components made of steel sections and steel plates, and adopts rust removal and rust prevention processes such as silanization, pure manganese phosphating, water washing and drying, and galvanizing. The components or parts are usually connected by welds, bolts or rivets. Because of its light weight and simple construction, it is widely used in large factories, venues, super high-rise buildings, bridges and other fields. Steel structures are prone to rust. Generally, steel structures need to be rust-free, galvanized or painted, and maintained regularly. According to the downstream application fields, steel structures can be divided into building steel structures, space steel structures, equipment steel structures, bridge steel structures, etc.

2. Development history of steel structure industry

The development of steel structures in my country can be roughly divided into four stages: restricted use, reasonable use, promoted use and vigorous development. Since the reform and opening up in 1978, my country's economy has developed rapidly and steel production has increased year by year. The 2008 Olympic Games and the 2010 World Expo were held in my country, providing unprecedented historical opportunities for the development of steel structures in my country. The development and continuous maturity of the market economy have created favorable conditions for the development of steel structures in my country. my country's steel structures are in the early stages of rapid development.

2. Policies related to the development of the steel structure industry

In order to promote the development of the prefabricated building industry, the state and relevant departments have introduced a series of supporting policies. In October 2021, the China Steel Structure Association released the "14th Five-Year Plan for the Steel Structure Industry and Long-Term Goals for 2035", proposing the development goals of the steel structure industry during the "14th Five-Year Plan" period: by 2035, the intelligent construction of steel structures will be basically realized. The strong policy support for prefabricated steel structure buildings is expected to bring a significant increase in the demand for prefabricated steel structure buildings in the public building sector.

China Steel Structure Industry Market Development Monitoring and Investment Potential Forecast Report 2023-2028 " released by China Economic Industry Research Institute HYPERLINK "https://www.huaon.com/channel/steel/865286.html" t "https://www.huaon.com/channel/trend/_blank"

3. Steel structure industry chain

1. Schematic diagram of the steel structure industry chain

From the perspective of the industrial chain of the steel structure industry, it includes upstream raw material producers, midstream steel structure processing enterprises and downstream engineering construction units. Upstream raw material producers smelt iron ore into ingots and crude steel, and further process them into semi-finished steel products such as plates, pipes, and long products through technical processes such as rolling and cold bending, and provide them to midstream steel structure manufacturers. Steel structure manufacturers provide services such as steel structure design, processing, installation and maintenance, and deliver products to downstream enterprises or independently contract projects. Downstream enterprises are mainly responsible for the construction of various types of steel structures.

2. Analysis of downstream applications in the steel structure industry

Steel structures are mainly used in factory warehouses, office and commercial, cultural, sports, education and medical facilities, among which multi-story buildings, exhibition centers and factories account for 33%, 26% and 20% respectively. In my country, the proportion of steel-structured houses is still relatively low, far behind that of developed countries. With the continuous increase in my country's prefabricated building policies, the market size of steel-structured houses will gradually increase, thereby promoting the development of the light steel structure market.

4. Analysis of the current situation of steel structure industry

1. Steel structure output and its proportion in crude steel

According to the "14th Five-Year Plan for the Steel Structure Industry and Long-Term Goals for 2035" released by the China Steel Structure Association, by 2025, the national steel structure consumption will reach 140 million tons, accounting for more than 15% of the national crude steel output. According to data from the China Steel Structure Association, my country's steel structure output in 2022 was 101.8 million tons, a year-on-year increase of 4.95%, accounting for 10.05% of crude steel output, which is still a large gap compared with the average proportion of 30% in developed countries.

2. Market size of steel structure buildings

It is estimated that the market size of steel structure in my country will be 802.41 billion yuan in 2021. According to the development basis of the goals in the "14th Five-Year Plan for the Steel Structure Industry and the Long-Term Goals for 2035", it is predicted that the market size of steel structure in my country will be 728.42 billion yuan in 2022 and 802.64 billion yuan in 2023.

5. Competition landscape of steel structure industry

1. Competition landscape of steel structure industry

The steel structure industry is highly competitive and the industry concentration is relatively dispersed. According to statistics based on production volume in 2022, the market share of the top five listed companies in my country was less than 7%. However, due to frequent fluctuations in steel prices in recent years, coupled with adjustments to industrial policies and stricter industry supervision, some small and medium-sized steel structure companies that lack innovation, have relatively weak strength, lack qualifications, and have imperfect management have found it difficult to survive in the competition and have successively withdrawn from the market. Coupled with the impact of force majeure factors such as the epidemic in recent years, the industry has accelerated its clearance and the market share of leading companies has increased year by year.

2. Revenue of key enterprises in the steel structure industry

Honglu Steel Structure mainly focuses on three businesses: steel structure product manufacturing business and steel structure supporting product manufacturing business, supplemented by steel structure prefabricated building engineering business. Honglu Steel Structure is currently the largest professional manufacturer of steel structure and supporting products in China, and has achieved a large-scale and professional production pattern. In 2022, Honglu Steel Structure's steel structure product output was approximately 3.4954 million tons, an increase of 3.21% over the same period in 2021.

6. Future development trend of steel structure industry

1. Intelligent manufacturing of steel structures will become an inevitable choice for the transformation and upgrading of the steel structure manufacturing industry

Steel structure enterprises are labor-intensive enterprises, which rely heavily on the demographic dividend. In recent years, the problem of population aging in my country has become increasingly serious, and the number of laborers in the construction industry has been declining overall. In 2022, the number of migrant workers in my country's construction industry was 52.3247 million, a year-on-year decrease of 5.85%. As the labor force decreases, the per capita wage has also increased year by year. In 2021, the average wage of non-private units in the construction industry was 75,800 yuan, a year-on-year increase of 8.25%, and the average wage of private units was 60,400 yuan, a year-on-year increase of 5.45%. The gradual disappearance of the demographic dividend has made low-cost labor a scarce resource, and the traditional manufacturing industry is facing the problem of increasing labor costs. Therefore, accelerating the transformation and upgrading of my country's traditional manufacturing industry through intelligent manufacturing and promoting the development of "Made in China" to "Smart Manufacturing in China" will become an inevitable choice for my country's industrialization process.

2. The market trend of “the strong will always be strong” will become more obvious

According to the prospectus of China Construction Science and Engineering Corporation, the CR3 of the US steel structure industry accounts for more than 50%, and the main reasons for the increase in its concentration are twofold: first, since the general contractors of heavy steel structures and space steel structures often require the contractors to have first-class construction qualifications and excellent past project performance, the strong enterprises with excellent project accumulation have formed a situation of getting stronger on the engineering side; second, the transportation cost of steel structure products is relatively high, and enterprises with a nationwide layout on the processing side can seize a larger market share. With the continuous improvement of the tax and social security collection system and the continuous implementation of strict environmental protection supervision policies, the profit margins of my country's steel structure small and medium-sized enterprises may be further compressed; while the leading enterprises continue to build new production capacity, increase fixed asset investment, continuously improve costs, and improve profitability, the market trend of "the strong will get stronger" in the steel structure field will be more obvious in the future.

Huajing Industry Research Institute has conducted a detailed analysis of the development status of China's steel structure industry, market supply and demand, and conducted in-depth analysis of the upstream and downstream industrial chains and corporate competition patterns, in order to minimize corporate investment risks and operating costs and improve corporate competitiveness; and used a variety of data analysis techniques to predict industry development trends so that companies can seize market opportunities in a timely manner.