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How does the steel industry go out “the cold winter”?

At present, just when midsummer, but China's steel and iron market is occupying actually extremely severely cold in, be hard toes start.This year first quarter, our country steel and iron profession realization profit - 1,034,000,000 Yuan.This is the steel and iron profession near for 12 year first entire profession loss.The high production can with the weak demand, the high cost and the low steel price, these contradictions is puzzling the steel and iron profession development.That, how does the enterprise strive for the survival, the stratagem development in the adverse circumstance? How does China's steel and iron profession go out “the cold winter”? Looks together today the focusing.
  
Steel business profit high cost, low price dilemma pressure
  
The steel industry once was the Chinese economy back, but the recent years, the profession development have encountered the cold winter.This year first quarter, domestic key large and middle scale iron and steel enterprise comprehensive loss, amount of loss ultra 1,000,000,000 Yuan.Since this has been the steel and iron profession enters the new century the first entire profession to lose money, the loss reaches 33%, the unprofitable firm amount of loss amounts to 9,098,000,000 Yuan.The entire profession loses money under the macroenvironment, the well-known iron and steel enterprise Anshan Iron and Steel Company's day does not feel better.
  
Anshan Iron and Steel Company Joint-stock company Manager Chen Ming: Why does the company lose money, mainly is two this prices.The steel products price too has lowered, raw material price too was high.Is the steel price had not achieved the budget the level, raw material price elevated.This difference in price of agricultural and industrial and the beginning of the year budget compares for us, raw material price and the steel price the influence which brings to us altogether are 9,000,000,000.
  
Learns from a painful experience the adverse circumstance to seek livehood
  
Regarding reason which the profit places something under a base in the same profession, bright with hardship is thinking deeply about continuously as to be listed Anshan Iron and Steel Company Joint-stock company Manager's Chen.In studies the colleague enterprise product carefully, compared to after the report form, he discovered, Anshan Iron and Steel Company's has restricted Anshan Iron and Steel Company's profit ability seriously in product mix inferiority.In addition, must want to adapt the market demand, must have can produce the good product the production line.However the Anshan Iron and Steel Company existing production line, already by far fell behind actually the entire profession.
  
Anshan Iron and Steel Company Joint-stock company Manager Chen Ming: The original investment idea quick has not given a welcoming dinner in the radish, the steel and iron makes money, the request short cycle, fast return, high effectiveness, has now turned head that set of thing (production equipment) is the scrap steel rotten iron, is such a matter,
  
Facing all sorts of disadvantageous situations, Anshan Iron and Steel Company people top-down positively try to find solution to look for a way out.
  
The Anshan Iron and Steel Company group counts finance department Minister Liu Shen: Our Anshan Iron and Steel Company only superiority is we has the ore, in view of this, we has also favored this form, therefore we gave the mine to increase price from last October to him, has adopted the drive mechanism, has adopted the system drive means, let him produce the ore.
  
Is very low in the steel and iron profession overall profit does not even have profit today, the improvement sale way, simplifies the middle link, served the user already to become the development direction directly which the entire steel and iron profession approved together.The Anshan Iron and Steel Company has also carried on the attempt in this aspect.
  
Anshan Iron and Steel Company Joint-stock company Manager Chen Ming: The iron and steel enterprise you must with the user pipe nipple on, on the pipe nipple your this idea also have to change.You turn the service provider by the producer, the direct service, is your user the next to the skin nursemaid, serves for you, transfers toward this above.
  
Trains hard the internal strength display superiority to turn losses into profit
  
Vigorously promotes the management in the Anshan Iron and Steel Company, falls this efficiency and so on a series of reform measure under the impetus, in loses money continuously for 4 months, estimated in May will realize turns losses into profit.
  
The Anshan Iron and Steel Company group counts finance department Minister Liu Shen: From looked 1 to April that, Anshan Iron and Steel Company's production situation was not good, lost money large number 41 hundred million.But at present looked that, these four months our amount of loss is month by month drops.Lost money from January lost money 1,600,000,000 to April 600,000,000, month by month was dropping.Estimated this in May we can realize turn losses into profit.
  
The high production can impede the profession development with the weak demand
  
The steel and iron market continues the murky other important reason, the high production can and between the weak demand contradiction, even more not allow to neglect.
  
Since actually has caused the steel products market quite to be continually murky this year the most main reason to supply is bigger than the demand, for instance likely automobile profession speech this year 1- in May speed-up also only then about 3%, that likely real estate with a steel biggest branch, their this year 1- May speed-up also 20%, therefore causes this demand special weakness.Simultaneously produces can the increase which continues.
  
Statistics have indicated, in 2012 our country thick steel consumption quantity estimate is 6.7 to 680,000,000 tons, but 2012 steel output will achieve 7.1 to 720,000,000 tons.But, our country steel and iron produces this year can achieve 9.2 to 930,000,000 tons, produce can the use factor then 80%, with international approval 85% gathered disposes of property can the use factor differ 5 percentage points.Under such aspect, how should the enterprise manage?
  
Analyst: Enterprise's speech should have to have one to be clear about the strategic status, the possible previous ten year fast growth speech, to have caused this profession is on the other hand extensive -like the development, but present when the entire profession enters a loss or said micro owes a situation speech, needs the enterprise to carry on a fine refinement the management.
 
The significant steel and iron project attains approves
  
Also remembered at the end of May, micro on abundant is spreading this kind of chart.This picture, the source changed the member of a revolutionary committee in the national development to approve one batch of significant steel and iron project, including the Guangdong Zhanjiang Metallurgical base project and the Guangxi Fangchenggang metallurgical base project.The steel and iron profession continues, to produce murkily can under the surplus background, one batch of significant steel and iron project attains approves, brings in some questions.The steel cooperates routine assistant deputy secretary-general, metallurgical industry plan research institute Chair Li to newly create believed that, this time starts “the Guangdong and Guangxi” the project, is advantageous produces advanced in the reserve energy, enables the project when the market rise, the profession booming change for the better the full display function, prevented falls the after-birth energy “to resurge”.
  
After the news surface uploads national Development and Planning Commission to speed up the significant project examination and approval, forms the advantage to A market to be good.Tectonic plates and so on cement, water conservation, railroad capital construction obtain the fund attention once again.However, the steel and iron profession must go out truly the cold winter, still needs difficultly diligently.
  
The Chinese steel and iron profession recent always is produces can be surplus, because the steel and iron is draws the GDP speed-up




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