Market status of metallurgical engineering industry in China



1. The global epidemic continues to spread, and overseas investment in China's metallurgical engineering industry is cold

Metallurgical engineering refers to the field of planning, investigation, consultation, design, construction, installation, commissioning, monitoring, supervision and other work in the process of metallurgical industry construction and technical transformation. Metallurgical engineering projects are characterized by high complexity, large uncertainty and clear objectives.

According to the data of the Ministry of Commerce, the newly signed contract amount and completed turnover of metallurgical projects in China's top 100 foreign contracted projects reached the maximum value in 2018, and then declined significantly, and the newly signed contract amount and completed turnover of metallurgical projects of the top 100 enterprises in 2020 were only $477.277 million and $1990.78 million, respectively, which shrank by nearly 60% compared with 2018.

In addition, there are only two metallurgical engineering companies listed in the top 100 foreign contracting enterprises in 2020, which is seven fewer than in 2019. Overall, overseas investment in China's metallurgical engineering industry has experienced growth in the past few years, and has begun to decline.

According to the prospective analysis, the main reason for the significant decrease in overseas investment in the metallurgical engineering industry in 2020 is the outbreak and spread of the new coronavirus epidemic on a global scale. Due to the epidemic, some contracts won cannot be signed on time, projects under construction cannot resume work on time, and overseas operations are also difficult, which has a severe impact on overseas business development.

2. Analysis of the competitive pattern of China's metallurgical engineering industry: MCC has retained the top spot in industry contracting

Looking specifically at the situation of representative enterprises in the industry, China Metallurgical Engineering Co., Ltd. has basically contracted key metallurgical projects at home and abroad in recent years. As a metallurgical engineering contractor with the largest market share, the longest professional operation history and the strongest professional design ability in China, MCC has a leading position in the field of metallurgical industry construction in China, and is also the largest overseas metallurgical engineering contractor in China, with strong competitiveness and greater development potential in the field of global engineering contracting.

In the project general contracting business, financial strength and financing ability is one of the important factors for customers to choose contractors, smaller assets of the company's ability to contract projects is limited, so the rest of the metallurgical engineering is basically by Chinalco International, China Steel International, China Color shares and other large listed enterprises to undertake, and compared with metallurgical engineering, other companies in the industry at home and abroad contract amount is small.

From 2017 to 2020, China Metallurgical Engineering Group Co., Ltd. ranked first in the number of new contracts signed and completed turnover of foreign contracted metallurgical projects. In 2020, the newly signed contract amount of China Metallurgical Group Co., Ltd. was 477.277 million US dollars, and the completed turnover was 1694.1 million US dollars, which increased significantly compared with the previous year, but it was still reduced by different degrees compared with 2017 and 2018.

In the newly released 2020 "Engineering News Record (ENR)" "the world's Largest 250 International contractors" list, there are 5 listed enterprises in China's metallurgical engineering industry, MCC, as a representative enterprise in the field of metallurgical engineering in China, has ranked first in the industry for many years, and in 2020, it has advanced 3 places compared with the previous year. The ranking of other companies has retreated, and the ranking of China Color shares has retreated the most.

3. Analysis of the development trend of China's metallurgical engineering industry: risks and opportunities coexist, and the pace of industrial restructuring should be accelerated

Despite the many risks brought by the epidemic, the metallurgical engineering industry is also facing opportunities: in the future, the country will promote the deep integration of the two metals industry, promote the production automation of non-ferrous enterprises, management information, intelligent process, and personalized manufacturing, and create a digital, intelligent and service-oriented industry. The metallurgical engineering industry belongs to the industry encouraged and supported by the state because of its high industrial correlation and large employment capacity. The implementation of national strategies such as the Belt and Road Initiative, Beijing-Tianjin-Hebei coordinated development, and the Yangtze River Economic Belt have provided new growth drivers for the development of the industry.

In the future, China's metallurgical engineering industry needs to seize opportunities, meet challenges, and develop in adjusting industrial structure, completing asset restructuring, attaching importance to the concept of circular economy, and applying remanufacturing technology achievements.