With the steel industry to enter a period of low profitability of the domestic steel prices and steel trade enterprise is not only facing the loss of the crisis, but also are facing a more serious risk of funding strand breaks, down to the local Banking Regulatory Bureau, to Central Banking Regulatory Commission have issued a steel trade enterprise credit risk warning file, prompting the steel trade and business loans substantially increase the difficulty. Observers pointed out that the reason for this factor, in addition to bank credit risk control awareness, many problems exist within the steel trade and industry is the most urgent.

Steel trading company credit by the meat and potatoes become rotten eggs

Is well known that a few years ago, banks often chasing the steel trading business lending, while the steel trade company only need a few registered companies UNPROFOR can easily to a lot of money from the bank loan; can be said that during that period. The steel trade enterprise in the eyes of the bank loan officer, is the God of Wealth, definitely in the hundreds of miles away will smell the aroma recovery over the meat and potatoes.

So why just a few years, the bank attitude of the steel trade enterprise took place a hundred and eighty degree turn? Loan not justify the increased risk of making the bank the original god of wealth as rotten eggs, like shunned it.

As steel prices continue to Zoudie, the steel trade enterprise lending model as security for loans as the main form a substantial increase in bank risk. Steel trading business, as collateral to bank loans after a certain number of finished steel; Once the company is unable to repay the loan, the bank can get only in the warehouse of the pile may be rusty steel, steel prices continue to go down originally equivalent steel stocks likely to shrink 10% in a few months; banks only do this on the steel auction, but not necessarily be able to sell out; caused by large quantities of non-recovery of loans, and ultimately loss .

At the same time, with the period of the steel industry has entered the period of low profitability or even losses, the steel trade and business loans do not money to escape, suicide and other acts, with the proliferation of media focus on negative reports in the banking hearts, steel trade enterprises have gradually evolved into lack of credibility, loss of integrity of the group, on the subjective sense of trust makes the banks thus far in the steel trade enterprise; I learned that there was a non-steel business needs financing, but the bank a check to the company in the steel trade, immediately refuse the loan ..... such incidents do not know where.

In addition, more and more steel trade enterprise before this wanton use of the good reputation of the steel trade and business in the bank loan and then invest in stocks, real estate and other non-steel business; period of time, the steel trade and the number of companies But the real steel trade business rarely surge; most of the new steel trading company is just a shell, the only use is to bank loans; so caused the bank a lot of loans to the whereabouts of the steel trade is not clear, it is difficult to recovery, making the bank direct transfer urgent attitude of the steel trade enterprise.

Above, linked to demand a serious decline of the steel city, steel trade enterprise funds are serious inventory, tie up, liquidity is very limited; steel market, creating a vicious cycle, liquidity tensions have been in the industry to affect the steel trade enterprise of life and death mark up; Since 2012, the steel trade and industry is facing a record pass it as early as reasonable thing in the history of the most serious risk of funding strand breaks.

Need to first of all internal self-examination to solve the steel industry chain of funding crisis

The steel trade enterprises are caused by such banks fearing to avoid any adverse effects of the root causes of internal chaos, in order to solve this from their own lack of crisis outbreak fundamentally from the inside. Some people say that the steel industry into a downturn would not happen; but I think that the profitability of the industry downturn just cause "ignition" of the steel trade and credit crisis; this stage is the steel industry must go through the process, sooner or later only.

The steel trade and industry within the management is in chaos, the chaos of lax oversight of the business sector, a steel trading company, 10 million yuan can be registered without the need to ensure that the steel stock alert red line, the threshold is too low to easily cause the advantage of the loopholes of the speculators; company registered after the Trade and Industry not timely regulatory and other related departments, causing a lot of posing the fact that the business audit is not deep.


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