"We could have 17%-18% of the gross profit." When Mexico's largest steel enterprises, the President of the Ahmsa Alonso Ancira speak this sentence, allowing domestic steel industry how much people admire.
Has a history of 70 years Ahmsa steel group is the giant of the Mexican worthy, now has 19000 employees, and its crude steel production which accounts for 20% of the country's-25%, in fact, the company in good condition, in addition to the gross profit not low beyond, its net profit more than doubled last year.
 
In sharp contrast at present the plight of China's steel industry, the high cost and low profits, export difficult, the problem with China's steel enterprises.
 
Has the advantages of coal iron ore
 
From the Mexican capital city Mexican city, probably want to sit two hours to reach Ahmsa steel small planes in desert area north of the MengKe ROM watts (Monclova). Look down from heaven, and the weather is hot, is located in the desert, but for geology know a look that the surface features it is mine rich performance. And here there is another geographical advantages-very close to the United States.
 
"We this year's crude steel production can reach 3.95 million tons, than last year the had increased. Complete the production about a year need 6 million tons of iron ore, our own mine can supply 5 million tons, 1 million tons, mainly from the rest of the special quality needs, will be imported from the United States and Brazil." The public relations director Alejandro Garza Ahmsa tell time weekly newspaper reporters, "and at the same time we also need 2.3 million tons of coal, including about 300000 tons of special requirements and imports, all the rest is self."
 
Ahmsa La Perla iron and steel group owns and Sabinas coalfield, Siemens company for Ahmsa provide thick plate mill, electric arc furnace (bof, oxygen such as extensive production technology and equipment. The company is ambitious plans to increase production capacity to 4.6 million tons a year.
 
At the same time, Mexico steel prices. Earlier this year, Ahmsa will be cold, hot rolls price per ton raised $26. So, Mexico hot coil ex-factory price rise to $812-882 tons, the cold roll up to us $969 / mt.
Mexico's economic outlook is promising, GDP is expected to double in 20 years, per capita GDP reached $17000, in 2020 is expected to car production of 4 million cars. This good macroeconomic outlook is certainly on the stimulation of steel production.
 
"Phoenix" leaps
 
And, Mexico to increase production capacity and apparently upgrade technology has strong interest and ambition. In the factory, the reporter can be seen everywhere are for Finex project building booms. Finex project, is the latest energy conservation and environmental protection metallurgical technology. Finex in Spanish said "phoenix" (the English phoenix), take the ashes of Italy, show that this is a rely mainly on the scrap of steelmaking technology.
 
According to introducing, Finex project by Siemens, provide all the metallurgical equipment and technology, the project investment of 400 million us dollars, after the completion of the arc furnace output will reach 1.2 million tons. And at present, this project has completed 70%, is expected to put into production in June 2013. When Finex project the second stage, after the completion of the Ahmsa crude steel output is expected to increase to 6.7 million tons this amazing figure.
 
Compared to Mexico, the technology in China's promotion is not smooth, China steel association said the project mainly comes from the main use the electric stove, power consumption is quite high, and the domestic price make steel enterprises cannot afford it.
 
Ahmsa day is largely from can have their own field, it makes the cost greatly compression. In the international steel, Ahmsa is considered to be the lowest cost of global steel enterprise. And, as Alonso Ancira said: "the geographical location of Mexico determines the development of steel industry fit." Mexico is located in South America and the United States in between. The north American free trade agreement, make Mexico steel in the American market has a good competitive (although the agreement of the manufacturing of Mexico doesn't mean favorable), and geographically get Brazil, America's high quality iron ore and coking coal transportation costs also greatly lower than the China, Japan and South Korea.
 
China's steel trouble
 
And the happy days compared with Mexico, China's steel industry is facing the industry the loss of the panic. According to media disclosed information, from 2011 in the fourth quarter began, steel enterprises of steel industry has started to losses in December, loss amounted to 128 yuan per ton steel. January and February steel industry loss has reached 2.8 billion yuan, although march may profit and loss, flat but from quarter to see, the industry undoubtedly losses.
 
That someone smile, says today a ton of steel profits than pork. The bitter jokes, also reflects the biggest dilemma now steel is the high cost and low profits.
 
"Private steel enterprise difficulties don't have to say, of state-owned enterprises have the state-owned enterprises difficult. To cut costs do not like state-owned corporation so easy, still have a lot of apportion the task." A domestic steel industry insiders to times weekly reporters.
"This year's situation is the most could not see a year, also can not be easily will judge this year is the annual losses, said some of the newest data according to, has begun to turn the, but to which one still not say." A senior steel industry observers tell time weekly newspaper reporters, "but the point is, you can't always depended too much on national macro-control and the economic stimulus package, if dubious international iron ore, also get pricing can only rely on m&a......."
 
In the sixth metallurgical technology global media summit, Siemens ag, metallurgical department chief executive Werner Auer accept times weekly newspaper reporter to interview said: "m&a in Europe is at least strategy succeeded, I believe in China is also will make the corresponding results. China now need to make the decision of a problem, don't put the economic benefits low or poor quality of production of the enterprise eliminated. Whether in this respect to make the right decision was key." And We just come back from China's




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