The saying goes, a few happy some worries, Who are the beneficiaries of the steel prices fell sharply? Natural steel company for the production of raw materials. Steel price reduction, cost reduction is no doubt these companies to significantly slow the tone.
 
In addition, the steel industry downturn, M & A costs also will be reduced. The industry believes that the time has come for the large steel companies, speeding up the merger and reorganization.
 
Chief Engineer of the Ministry of Industry and Information Technology, said Zhu Hong, structural problems of steel prices and falling market demand added together to get out of this dilemma, should control the production, eliminate backward to promote enterprise and putting the focus on the market need high-quality varieties of steel.
 
China Steel Association released the latest statistics show that, in early July, the average daily production of crude steel is still as high as 1.958 million tons, is still in production high. This means that steel prices fell sharply, on the occasion of the whole industry into a loss of steel production, attitude is not positive.
 
Current steel market is facing downstream steel demand is low, the high domestic steel production, the export situation is not optimistic about the multiple pressures to decline in value of production - loss - this path will be forced to choose between steel mills. "Lange Steel Information Zhang Lin, Research Center, said, "steel not dare to stop the blast furnace, but also involves considerations of taxation, employment, loans, local government support."
 
It is understood that the pre-steel production is mainly concentrated in the roll production line, but the news that the existing blast furnace shutdown cut situation. Insiders pointed out that the supply pressure Can be eased, still depends primarily on efforts to cut steel mills.
Zhu Hongren pointed out that the Ministry of Industry will continue to actively support the merger and reorganization of the iron and steel enterprises, the intensity of technological transformation, the implementation of industry self-regulation to prevent the excessive expansion of production support for Iron and Steel Institute, at the same time give further support for the elimination of backward.
According to the Ministry of Planning, "12th Five-Year" period will significantly reduce the number of iron and steel enterprises, the top ten iron and steel enterprise group steel production accounted for the proportion of the national total increased from 48.6% to about 60%. Focus on supporting the advantages of large-scale iron and steel enterprises to carry out trans-regional, cross-ownership mergers and acquisitions, the formation of enterprise groups 6-7 furniture core competitiveness and a strong international influence. Related policies will be the "catalyst of the industry mergers and acquisitions."
Insiders pointed out that the enterprises to the brink of collapse with a strong business mergers in the past, the consolidation and reorganization of the steel prices in recent years is more powerful alliances or to respond to market challenges and to take spontaneous recombination and intra-group integration. Adjustment of product structure and to extend the industrial chain is an important direction for future development of the steel prices after the merger and reorganization.



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