Shougang Changzhi: coking coal procurement continues to beat the market

In April, the company ranked fourth in the coking coal purchasing cost industry, outperforming the market by 2.38%. From January to April, the company's coking coal procurement cost accumulated industry ranked fourth. January, March and April were evaluated as Class A in the group steel plate small index competition. In February, the industry ranked third, raising red flags.

As the biggest support point for cost reduction and efficiency increase, procurement department has more space than process cost reduction. But the effort is also huge. According to the unified deployment of the company, the procurement center actively overcomes the influence of factors such as the continuous rise of raw fuel prices, keeps close to the market, adopts scientific measures, makes great efforts in improving the ability of prediction, continuously improves the procurement efficiency, reduces the procurement cost, and provides strong support for the operation and production.

Optimize the mix of coal. New types of coal, such as Wuxiang lean coking coal and sulfur main coking coal of Coking coal Group, have been introduced to broaden the resource procurement channels and reduce the coking coal procurement cost. At the same time, in order to balance the sulfur load, the main sulfur coking coal in Shanjiao Group is actively implemented, and the coal blending structure is continuously optimized while the coke quality is stabilized to reduce the purchase cost.

Adjust the purchasing pace in time. Through increasing the market research and analysis, and peer benchmarking, timely adjust the procurement strategy, to minimize the procurement cost. The coking coal market is in a weak position, and the purchasing mode of small batch and multi-frequency is adopted to timely adjust the purchasing price closely following the market. Compared with last month, the average purchasing price of coking coal is reduced by about 52 yuan/ton.

We will continue to carry out direct mining in large mines. We will continue to use large state-owned production enterprises and direct supply manufacturers as the main procurement channels, maximize the proportion of direct production, deepen strategic cooperation with shanxi Coking Coal Group, Lu 'an Group and other large enterprises, and stabilize supply channels. At present, the proportion of direct mining reaches 70%.

Reduce logistics and transportation costs. As a gas coal producing area of Shanxi Coking Coal Group, railway transportation cost is lower than road transportation cost. The procurement center has assigned personnel to coordinate with the Shanxi Coking Coal Group to ensure the use of rail freight with lower transportation costs. With the help of "public railway" to optimize logistics, all the gas and coal entering the plant in May were shipped by railway, reducing logistics costs by millions of yuan.