1.1 billion, which is more than 70 large and medium-sized steel enterprises from January to April this year a total profit of 25.6 billion, which is the lending rate of the steel mills over the same period, the total cost of loan consultants' fees, water conservancy construction funds and other financial, financial costs rose by nearly 40%. Huge financial burden Quxiu Li emotion, deputy secretary general of the China Steel Association, Chinese steel mills, not only in overseas mines to work, but also working for the domestic commercial banks.

So bitter forced to not only the steel industry, petrochemical industry seems to fame. Treasury data show that in March of this year, the balance of state-owned petrochemical enterprises was 59.10 percent, the profit margin is 3.21%, finance costs rose sharply by 34.69 percent year on year.

This one sounds incredible: not only a large number of SME financing, financing your Baosteel, Wuhan Iron and Steel and even large state-owned enterprises such as Sinopec subsidiary companies are also facing an increasingly prominent similar problems, leading to the drama of the financial cost increase.

The above-mentioned situation of the steel and petrochemical companies attracted attention. A few days ago, led by the Secretary for National Development and Reform Commission and industry, the number of joint Ministry of Industry, Ministry of Finance, the central bank, China Banking Regulatory Commission and other ministries jointly developed a policy proposal is being drafted. Relevant departments and bureaus of the Ministry of Industry, an official said June 19 that reduce the bank loan link unreasonable cost, will become an important part of the policy.

Joint research

In early June, the National Development and Reform Commission Ministry of Industry, Central Bank, Ministry of Finance, China Banking Regulatory Commission and other ministries formed a joint research group of the State Council, to conduct research on the steel and petrochemical industry of the five provinces of Hubei, Jiangsu, Liaoning, Hebei, Shanghai, the research The group therefore divided into the steel and petrochemical two groups. National Development and Reform Commission said in a June 1 Kusakabe Express files, through this research "in-depth understanding of the production and operation of the enterprise and the main problems, analyze the cause of the problem, listen to comments and suggestions, and on this basis targeted policies and measures proposed to form a special report submitted to the State.

It is reported that the steel and petrochemical two research groups, starting on June 5 and end on June 7 and June 11 respectively. Petrochemical research group has been to the Shanghai Chemical Industry Park and Nanjing Chemical Industry Park, two well-known local petrochemical companies to conduct research, and iron and steel group visited including Baosteel, Wuhan Iron and Steel, Sha Steel, Anshan Iron and Steel, Tangshan Iron and Steel and other large steel companies.

The aforementioned Ministry of Industry officials said the financing more expensive, unreasonable taxes in this research reflect a very common phenomenon, there is also the raw material costs, overcapacity problems. Policy proposals being drafted and will propose concrete measures to resolve it submitted to the State Council.

Early in the second half of last year, the deputy secretary general of the China Steel Association in charge of financial late beauty has been found that the cost of iron and steel enterprises finance charges rapid growth. But, at the time, she and most of the steel mills once that this is only the central bank continuously raises interest rates lead to the results. By the end of the year, Qu Xiuli financial statistics show more than 70 mass-steel, large and medium-sized steel mills throughout the year 2011 a total profit of 87.5 billion, including interest on loans, bills of exchange, discount, including finance costs amounted to 621 billion, profits and financial cost ratio of 1:0.7. In 2012, finance costs to rise further following the financial costs of large and medium-sized steel enterprises in the first half of 2011 rose 33.79 percent year on year, the first four months of this year rose again to nearly 40%.

Qu Xiuli later analysis, leading to the causes of rising costs of corporate finance costs, the central bank to raise interest rates only a third of the rest of the Bank unauthorized charge to the business loans consulting fees "," expert consultants fees unclear costs and bank raised interest rates and other independent non-normal factors caused.

Quxiu Li said, "in the three cost, cost of sales and management costs, enterprises can through their own efforts to reduce, but the financial costs alone lies in the bank in the hands outside in the mines, steel mills reduced to to the point of bank employees.

Wang Dayong, the Secretary-General of the Hebei Provincial Metallurgical Association, said the high cost of financing not only exists in the large state-owned iron and steel enterprises, more evident in the private steel mills. The white side of the Wuhan Iron and Steel Group spokesman also told this newspaper that the financing is expensive, high financial costs for iron and steel enterprises is a common phenomenon.

Similar situation also exists in other industries. In September last year, industry bodies displayed on the financial analysis of several large-scale copper processing enterprises, the industry in the first half of last year's profit and financial expenses ratio of 1:0.6. The rising cost of financing, especially for copper enterprises, then with the acceptances discounted interest rates increase bank capital tightening, the financial rise further.

Bank charges

It now appears that the steel and petrochemicals industry, the first of many struggling with the financial cost of the mire of government bailouts. In mid-May this year, a report entitled "the current outstanding problems in the business of petrochemicals, iron and steel industry and policy recommendations report, causing a high-level attention and comments. The joint research is thus carried out in the National Development and Reform Commission and ministries.

The above report submitted by the State Council Development Research Center of Enterprise. June 20, the rapporteur said the newspaper, this year in mid-April to mid-May, she and business colleagues around the steel and petrochemical two industries, a one-month research.

The research is most concerned about is the stimulation of investment greater impact on industry, the final choice of the problem has become more prominent and concentrated steel and petrochemical. The survey results show that these two industries the financial costs of extraordinary growth phenomenon of pressure brought to production and operations.

The report said that the ultra-high growth in the steel and petrochemical industries, there are financial costs, the downstream demand is rising upstream costs, three major difficulties of structural excess capacity. The financial costs of extraordinary growth mainly due to financing costs have risen sharply, the cost of funds, a heavier burden.

The survey results show that the cost of financing of the large state-owned steel enterprises up to 20% to 30% in cash in the bank loan only 30% to 40%, and the remaining payments, discounted at the interest of more than 10% acceptances. Upstream and downstream enterprises of the petrochemical industry enterprises, mainly small and medium enterprises, bank loans to pay way more for the acceptances. In addition to years of inherited some of the expenses of the Fund in the past year or so, companies need to pay the cost of the addition of a few, such as port construction fees, renewable energy fund, water conservancy construction funds.

In the report submitted by the drafters propose to solve the problem of increasing financial costs exceeding the Government to regulate the order of the bank loans to strengthen the regulatory arbitrage of bank funds in vitro, unified nationwide clean-up unreasonable, unnecessary fees.

In fact, for the chaotic order of the bank loans, the National Development and Reform Commission price check and Antitrust Bureau in May of this year just concluded the relevant research results show that some types of commercial bank charges, under various names, ranging from dozens of more than those hundreds of the vast majority of these charges by the Commercial Bank to develop, just reported by the professional regulatory authorities for the record to receive ".

Commercial banks of unauthorized charges project, including not only continue to be charged prohibited fees, mandatory fees including the loans of the machine. The Council's research found that a branch of the fee mandatory in the process of examining and issuing personal loans, illegally collect personal finance consultancy fees from January 2011 to February 2012 totaled over 100 million.


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