Critical moment in the steel industry restructuring, the industry's operating profit continued, and even further developed into the industry-wide losses. In such a predicament, some iron and steel enterprises are targeted toward the direction of advance; some iron and steel enterprises has become loss flawless, can not find a clear break through the direction and means. To find the break through the road, must be sober analysis of the steel industry and enterprise facing the principal contradiction.
From the industry-wide situation of view, the principal contradiction in the current steel production capacity is large and still growing, variety and quality is still flawed with the growth rate is decreased, but the variety and quality requirements of the increasing market demand the contradiction is the contradiction between supply and demand on the number and structure of. The primary contradiction is the contradiction of supply and demand in the number of secondary contradiction is the contradiction of supply and demand structure.
Since the outbreak of the financial crisis, along with China's economic stimulus policies to gradually withdraw, relying on the investment-led economic growth model has started to change. Especially in the first half of this year, China's fixed asset investment grew by only 20.4 percent growth rate over the same period in 2011 and 2010, respectively, 5.2,5.1 percentage points lower compared to 2009 decreased by 13.2 percentage points, representing a decline in 2008 before the financial crisis 6.4 percentage points. , Metal cutting machine tool production in the first half of this year, down 9.0% down 0.2 percent, cement equipment, railway locomotives decreased by 35.2%, power generation equipment production fell 7.3 percent, washing machines, refrigerators, production decreased 1.0%, 7.4% ... At the same time steel production capacity has remained a certain size increments. According to incomplete statistics, in the first half of this year, new blast furnace 27, the total new ironmaking capacity about 35 million tons. This will inevitably lead to further intensification of production capacity and the number of contradictions between the needs of. The structural contradictions between production capacity and demand with the variety and quality of iron and steel industry and improve the gradual weakening and gradually transformed into a number of contradictions of the same species.
This contradiction between supply and demand, we should clearly recognize that the survival of the fittest competition has come.
As one of the basic rule of market economy, competition is the essence of the market economy. In recent years, with the rapid growth of the national economy, competition in China's steel industry has always existed, but has always been the main theme of the cover up for capacity expansion. Until after the outbreak of the financial crisis, the profit level of the iron and steel enterprises is becoming less and less, the competition is really related to the core concept of enterprise survival and development of quality. Even so, the industry still exist with this kind of thinking: as long as the market is to survive the winter, the steel industry will be able to usher in a new development opportunities. This idea itself is not wrong, just want to survive the winter in the market, it must be in the competition to become the winner. It's like a war, there is no win-win, only life and death choice. Therefore, we completely abandon rely on to be thinking, relying on the plight of the competition breakthrough industry.
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