In recent days, major media and circle of friends are buzzing about: the domestic steel mills, regardless of the large state-owned steel mills or private steel mills, on the one hand, but choose to reduce ex-factory price, on the other hand are still ashamed to talk about cuts. This is not a thriving market of signs, but shrinking downstream demand had to produce the dilemma, it is quite upset. The result is a high inventory of steel mills facing severe industry-wide losses.
However, why steel mills do not cut production, reduce losses?
Men try to figure out the first local government performance GDP, taxes, employment and so many other factors "kidnapping" of the steel mills. You know, both large and small steel mills are the meat and potatoes of local government, whether you prices have gone up and down, as long as the steel mills are still normal production, that one soil no big problem. Secondly, the steel industry itself: chaos on a scale of disorderly competition, resulting in serious surplus of yield, the lower end of the product technology, low efficiency of the sector. Although the state has repeated the strong regulation, but without avail.
Finally, it is too loose the funds to boost the chaos of the steel mills. Steel is never short of money, whether all types of banks, national policy banks, state-owned banks, commercial banks, joint-stock banks, local banks, etc., or various types of capital market, stock market, futures market, the bond market, etc. or a wide range of financial products and instruments, guarantee, pledge, goods charge, pledge of warehouse receipts, bills, credit, etc., to one-sided pursuit of the security of capital and rate of return, ignoring the risks of the Chinese steel industry, enterprises, products, provided to the steel mills a steady stream of funding and meticulous service.
Long-winded so many, it is dangerous to feel the steel mills status quo, because Men steel trading business is someone who has personal experience of the main business loss "black hole" only in well-off funding boost under the more loss the greater the In this way, just look to the government departments and the capital from various quarters, to come up with had to adjust the courage of the steel trade and industry, wisdom in the steel mills, cut its production, control of their funds, forcing the steel structural adjustment, improve product quality. So, after all, the country strategy for.
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