Steel restructuring guidance is about to be issued to resolve the strange circle of overcapacity
steel restructuring guidance is about to be issued to resolve the "strange circle" of overcapacity
according to voice of china CNR at 9:39, at the 2010 Council meeting of China Iron and Steel Industry Association held on February 5, Miao Wei, Vice Minister of industry and information technology, revealed that the guidance on mergers and acquisitions in the steel industry formulated by the Ministry of industry and information technology will be issued. Miao Wei pointed out that the Ministry of industry and information technology will speed up the restructuring of the steel industry, and the steel industry should "encourage the development of three to five large steel enterprises"
there is a strange circle in China's steel industry. Every year, overcapacity is said, and the capacity is increasing every year. At the same time, the total amount of backward capacity is expanding every year. The Council meeting of China Iron and Steel Industry Association held on February 5, 2010 released a set of data: in 2009, the top five in China's iron and steel industry accounted for only 29.1% of the country's steel output. Row 2. The top five iron and steel giants, Hebei Iron and steel, Baosteel, Wuhan Iron and steel, AnBen, Shagang and other five groups, produce 165 million tons of steel, accounting for only 29% of the national steel output in the same period, which is closely related to product quality and personal safety. The concentration of the top five in the iron and steel industry increased by only 0.5 percentage points, and the concentration of the top ten also increased by only 0.9 percentage points, which is still far from the goal of "reaching 45% by 2011" put forward in the "iron and steel industry adjustment and revitalization plan" of the State Council. The profit level of the domestic steel industry in 2009 was about $10/ton, which was far from the profit of tens of dollars per ton of steel when the steel industry was "booming" in previous years. The domestic steel market has been oversupplied. Low concentration and overcapacity have become the main obstacles to the recovery of steel prices and the improvement of industry profitability
China Iron and Steel Association also has a set of data. In 2009, the steel output of key iron and steel enterprises increased by 11.27% over the previous year, and the annual crude steel output reached 568 million tons, more than 100 million tons expected in the "steel industry adjustment and revitalization plan". The growth rate of crude steel output of small and medium-sized enterprises was more than twice that of key Steel Association enterprises, reaching 24.73%. However, the output of legal iron and steel enterprises that have really been approved by governments at all levels is only about 300 million tons, and about 300 million tons have not been approved because of their high control performance. The main reason why the Ministry of industry and information technology accelerates the restructuring of the steel industry is the low concentration of the industry and the large backward production capacity
globally, the output of four steel mills in the United States accounted for 61% of the country, and that of four steel mills in Japan accounted for 75% of the country, while the output of China's top five steel enterprises accounted for only 31% of the country in 2009
yangsiming, chairman of Nanjing Iron and Steel United Co., Ltd., said that the rapid rise in crude steel production of small and medium-sized enterprises has greatly weakened the positive effect of large-scale steel plant restructuring on industry concentration. "The iron and steel industry has entered an era of meager profits, and adding capacity is tantamount to digging its own grave."
Yang Siming believes that the reason why China can have such a large consumption scale of crude steel in 2009 is mainly because the large-scale investment of the country drives the demand for steel. But at the same time, the investment stimulus in 2009 also prepaid part of the steel demand in the next few years
this time, the Ministry of industry and information technology issued guidance on accelerating the restructuring of the steel industry, the main purpose of which is to change the current cycle of low concentration of the industry and large backward production capacity. Change the structure of China's steel industry and enhance the competitiveness of steel enterprises in the international market