Since the beginning of this year, Baosteel Stainless has set the goal of making stainless products into new engine products, gathering all staff to quickly improve the operational ability of grasping complicated situation. In the first half of the year, Baosteel Stainless Steel realized a year-on-year profit growth of 642 million yuan under the harsh economic situation.
In the first half of the year, the market price of domestic stainless steel went way down and downstream demand remained weak. Baosteel Stainless listed "continuously improving the operational performance" and "transformation and promotion of second startup" as two key strategic tasks, encouraged all staff to focus on "promoting the operational efficiency of assets", established linkage mechanism of supply, production, marketing and research, spared no efforts in pursuing high quality, low cost, quickly improved professional and operational ability, realizing the continuous improvement of operational performance in the market predicament.
To seize the cost initiative from the source, minimum the market risk caused by upstream raw material price fluctuations and reduce taking up the existing stock, since the beginning of this year, Baosteel Stainless has focused on "on-demand procurement, structure optimization, low-price running, strategic sourcing", strengthening the study&judge of raw material market and has developed the collaborative system through the procurement pattern of "strategy+precision", reducing the cost of purchasing staple raw materials. In the first half of the year, Baosteel Stainless and Ninbo Steel jointly found the collaborative procurement team and achieved reducing the cost of 31.23 million yuan on reducing third carrier, the port storage charge, ship agency charge and freight charge. Besides, Baosteel Stainless also established internal collaborative research team, further optimizing the plan matching precision of ore blending, manufacturing and purchasing and the monthly stock inventory of ore in the first half of the year was reduced by more than 30%; Nickel raw material was reduced by 50% through strengthening the inventory management and shortening the procurement radius,etc., reaching the best level in its history.
Since the beginning of this year, Baosteel Stainless has continuously tapped into the potential, vigorously carried out the improvement of on-site manufacturing ability and reduction of technical cost. Steel-making Mill focused on reducing cost, strengthening collaboration with departments of purchasing, manufacturing management, etc., continuously working hard on promoting the ratio of molten iron, and the pure nickel consumption per ton dropped 13kg last year; Through applying the molten iron smelting process in AOD furnace, the molten iron smelting ratio of the 400 series stainless steel increased from 50% last year to the current 68.8%;Optimizing the key and bottleneck process of smelting key profitable product ultra-pure ferrite stainless steel to achieve the improvement of its capacity and quality, and the average monthly capacity was increased 52.5% to last year. Hot Rolling Mill focused on yield, natural gas and power consumption, and achieved reducing cost of 49.68 million yuan in the first half of the year by specific labour emulation and technical cost reduction, which over-fulfilled the cost reduction goal. Besides, Hot Rolling Plant also focused on expanding varieties and increasing the productivity, achieving stable improvement of variety and quality by establishing research team of rolling stability,etc., and in the first half of the year, the Hot Rolling Line expanded 30 new brands, 120 new specifications and nearly 20 thousand tons of new products, all of which has already achieved fast and stable production, with the total quality under control.
