Steel City in July is like a cat on hot bricks, spread panic anxiety. Steel prices a continuous fall sharply lower futures, macroeconomic policy has not brought much real good, the market fell into a deep downturn. Downturn in the steel industry as a whole, the industry-wide loss is inevitable, the majority of steel prices into the low-profit or even losses, although the individual operating conditions are acceptable but only rare, reversing not the plight of the industry. Allegedly, many steel enterprises have in adjusting the full-year profit targets, but with the decline in raw material costs, steel prices are not cost support, the current downturn that will continue, the latter will appear in the trend of low volatility. Faced with an increasingly grim situation, the steel industry will go from here? How can we ease the contradiction between supply and demand short-term and long-term out of a scientific and reasonable, in line with market demand for the road?
The short term, we must control the production and utilization and to reduce production capacity, market supply down to a reasonable level. The majority of the recent steel prices sharply down to the finished product ex-factory price, lack of reason is the demand for steel downstream, blocked the finished product sales. The imbalance between supply and demand comparison market is saturated, the damage is, of course, the steel mills and steel trade. Has announced some large steel mills in Sha Steel and Liuzhou Steel will soon take the initiative to cut or arrange for maintenance will reduce some production, but only a drop in the bucket, hard with a huge inventory base to compete. It is reported that the majority of blast furnace in Tangshan and not cut and overhaul at the same time around the many small factories continue to produce, cut or stop production for them is tantamount to surrender, until the final step must endure should hold.
Long term, the drawbacks of the steel industry. Steel on the broad downstream market is like a bigger cake, but too much competition there is vicious competition even within the industry the possibility of a vicious cycle, so people must first streamline the cake, is to scale and capabilities of the integrated iron and steel enterprises, the implementation of shutting down and to transfer and eliminate backward production capacity. Although the information has been published the first out of the list of backward production capacity, but are mostly small and medium, and truly make large steel enterprises criticized by the industry does not really involved, I do not know is being reviewed and processed, or too bulky hard to shake? Secondly, we must improve the quality of the cake. Commonly used carbon steel to be building a solid brand and quality, should also carry out the policies of product differentiation and improve process flow, and play product features, such as the production of high technical content and market value of excellent steel, special steel. Once again need the rational distribution, areas of the steel industry to the lack of resources to distribute the market, rather than rush the focus to some of the hot zone, or else not out of the market, internal excessive competition. The last internal management is also worth mentioning a steel enterprise executives to strengthen internal management, improve management efficiency savings of tens of millions of dollars of capital for the enterprise, it is particularly important in the transitional period of prosperity of the enterprise.
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