For the steel trade and business loans by the end of April by the Shanghai Banking Regulatory Bureau, issued to commercial banks warning. In this regard, the steel trade of the Shanghai area collectively, the bank issued an open letter to urge banks and other financial institutions are not "one size fits all, high quality steel trade given Xudai support.
 
"An open letter issued, we started to reached with the Industrial Bank, Minsheng Bank, Shenzhen Development Bank and China CITIC Bank a basic consensus, these banks are basically willing to maintain the original loan size, and lowered the yield of banks." Back to the steel trade circles the Xiaozhi Cheng told reporters yesterday. The meeting of the executive president of the the Zhouning Shanghai Chamber of Commerce, his daily work is the president Zhou Huarui to communicate with the steel trade, banks, and government, hoping to save this precarious industry chain.
 
However, the industry this analysis, emphasis on integrity and operational risks banks, loans to the steel trading business suffered a crisis of confidence will continue to consider the repayment ability of the market boom and steel enterprises. The main way of the steel trading business out of the woods, you should still by a return to the main industry and downstream steel cutting deep processing extension.
 
 
Slow part of the bank attitude
 
June 20, the relevant person in charge of the Shanghai Steel Exchange Building, Shenzhen Development Bank Shanghai Branch, China CITIC Bank, Shanghai Branch, Fujian, Shanghai Chamber of Commerce, the Zhouning Shanghai Chamber of Commerce and related steel market, the security company responsible person sitting together how the steel trading business out of the financing difficulties, and obtain the trust of banks. Prior to this, the Industrial Bank, Minsheng Bank has organized with the steel trade are similar to the exchange of communication will be.
 
Communication will be held the Zhouning Shanghai Chamber of Commerce in early June to commercial banks published an open letter. The open letter detailed statement of the financial difficulties encountered by the steel trading business and bank significantly the consequences of closing loans, banks at a critical time to give a stable financing support.
 
According to statistics on the open letter, the beginning of the year to now, the banks the Zhouning steel trade and industry of the financing scale has been contracted by more than 23 percent, many banks will require not only the steel trade to early repayment, new loans is hardly the result that many The signs of enterprises have been a funding strand breaks.
 
The reason why the commercial banks collectively on the steel trade is suddenly pumping loan, steel trading business, and Wuxi, chairman of an Island Group Resting and Jiangsu and Zhejiang Provinces, emerging on foot, the collapse of a great relationship. Coupled with the steel market remains in the doldrums, the outlook is not optimistic, steel trading business for many banks is the largest borrowers, which is exacerbated by the breeding of panic, and even lead to bank financing to close the entire steel trade industry tight "one size fits all."
 
"Resting in fact, owed 36 million of the Minsheng Bank, the companies have to carry out UNPROFOR on his behalf. Placed before, through the several enterprises of UNPROFOR in the form of bank financing, Zhouning steel trade has been to maintain zero default rate on banks' not a problem the steel trade also received loans, the UNPROFOR want to make the enterprise of the problem is to pay back the money, will be unable to because of lack of liquidity and repay. "Xiaozhi Cheng told the reporter, in order to to ensure the integrity of the system is not destroyed, many companies can only borrow money to usury (interest per month up to 0.1 yuan to 0.15 yuan) to the banks money.
 
But in recent days, including a number of banks including Minsheng Bank, Industrial Bank, the attitude of the steel trade has eased.
 
Communication at the meeting held in recent days, the Industrial Bank, Shanghai Branch Yu governor, said that the loan will never engage in a "one size fits all" of the steel trade and industry, Minsheng Bank, Shanghai Branch Ho, vice governor also said the loans to the steel trade
The total amount of unchanged pricing to float downward.
 
It is worth noting that each of these banks, it is the past few years the larger banks to loan ratio of the steel trade. Shao Chunhua, the vice president of Bank of China Shanghai Branch Company, pointed out that many banks lending to the steel trade and industry is highly concentrated, some bankers' acceptances, 70% are open to the steel trading business, which there is a big the risk, in addition, some banks do check on collateral loans are not precise enough, the steel trade and repeat mortgage credit risk, and a minority.
 
Industry urgently integrate transition
 
"Iron and steel trade is capital-intensive industries, banks in this period has also been fueled, if the problems of the entire steel trade and industry, will also lead to the entire financial systemic risk." A steel industry told this reporter analysis, therefore, steel trade associations and banks, it is important to the strict supervision of loans, screening of the steel trade enterprises the ability of normal repayment and borrowing, which should focus on monitoring and even eliminated, rather than "one size fits all" .
 
Industry sources have told reporters that, In fact, the entire steel trade and industry, small stocks, concentrate for downstream steel trading business, the problem is not funding pressure is mainly with the steel trade business ought not diversified investment, as well as by Construction steel market the enclosure financing of part of the group.
This reporter has learned that the steel market in Shanghai has more than 60, but regular more than 40, while Jiangsu and Zhejiang region is filled with densely packed more than 200 steel market, some investors to build the steel trade market in the name, won a land, the establishment of a guarantee company, began to attract investments from most of the banks to obtain loans to invest in real estate or lending, or even to buy luxury cars, luxury splurge.
 
"By the layers of security deposit paid to the banks, guarantee companies, and must be accompanied by the purchase of a lot of financial products to credit to the models, the steel trading business, the cost of financing over 15%. Fortunately, this part of the cost of the real estate market is good digestion now steel sell, the house can not hand, but before loan money can not buy, the sense of the steel trade is now relatively safe. "a steel trading business in Shanghai, told this reporter admits .
 
"2010 years ago, the steel trading business, each selling one ton of steel, you can earn 300 yuan to 500 yuan price difference, and now spreads only 30 yuan to 50 yuan, and be able to share the profits pie is shrinking dramatically, which means certainly want someone to quit Shanghai Steel Union president Zhu Hung told this reporter that the field of steel trade and the integration time is coming, the number of steel trading business will be significantly reduced.
 
Zhu red is expected that the rules of the market now prefer well-funded large-scale steel trade enterprise, the development of medium-sized companies is much more difficult, in contrast, the market contrary to the small companies to stay out of the room for development, because these companies can often provide particular product or service for large and medium-sized companies can not be replaced.
 
Zhu red further pointed out that the steel trading business can survive, should try to realizable assets, return to the main industry and downstream steel cutting deep processing extension, closed eyes can make money has been in the past decade, and now we must return to the real value chain and supply chain, an extension of the processing, distribution, warehousing, transportation, sales in one of the industry chain. "
 



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