Iron industry, re-transmission of huge loss. China Steel Association data show that the first half of its members to iron and steel enterprises realized a total profit of only 2.385 billion yuan, the profit margin dropped to extremely meager 0.13%, while the amount of loss of 14.248 billion yuan, the loss of 33.75%. China Steel Association, according to internal estimates, net of investment income, the actual loss in the first half of the iron and steel industry amounted to 1.3 billion yuan.
In this context, there is news that the China Steel Association intends to apply for relief measures, recommended that the Government take the steel industry, import substitution and rescue measures. The policy, approved by the iron and steel enterprises to non-tax price of sales to export processing enterprises for processing export products processing and export of special steel, the implementation of a full refund (or Free arrival) 17% VAT. The policy involves a variety temporary and ship steel to silicon-based.
Putting aside the policy implementation, how will China's steel industry affect. In fact, this tendency itself is sad. Iron and steel industry, low-profit, this is a fact, businesses do not root out the loss of reason, not investment projects efficiency, saving of production costs, product reform, to search for reasons, to improve enterprise to adapt to the market, but continue to seek government support, lying on the Government arms, the children never grow up.
Emotion, generally applicable law of economies of scale in the industrial economy, the Chinese steel industry is actually invalid, fascinating phenomenon, that is, the larger the enterprise, competitiveness worse. According to data released by the National Bureau of Statistics, the first half of the scale of ferrous metallurgy smelting rolling industry profits down 56.5%; Steel Association statistics, the large and medium-sized steel enterprises profits over the same period more than 90% reduction. Visible medium-sized enterprises effectiveness and SMEs.
Some people say that the steel industry is a sunset industry, and personally think that the Chinese steel industry, there is a large space for development, the loss of the iron and steel enterprises enterprise suited to market competition results from the reform is not complete. The current plight of China's steel industry development, industry distort the result of the development. Among them, the external factors are investment-led model of economic growth, substantial economic fluctuations affect the industry and stable development, leading to the unlimited expansion of production capacity; internal to the steel mills of the status of state-owned enterprises, lack of motivation, inefficient and unable to adapt to a fully competitive steel market. Therefore, the Chinese steel industry development, the reform of state-owned steel mills are still a long way to go.
First need to change the government's thinking. Rapid expansion of the scale of enterprises around the world since 2009, the state-owned steel mills Happy Valley enclosure, with the support of the local government. A result, the iron and steel enterprises to ignore the market, the blind expansion of the construction of many projects is doomed from the production began to lose money, low economic efficiency. In fact, the capital of the state-owned enterprises from the State, derived from the accumulation of national wealth, its use should be based on the national responsible attitude. Now, at all levels of the SAC should be open state-owned enterprises to invest in projects to evaluate the long-term assessment of the specific projects of investment returns, performance appraisal for policy makers and implementers, so that rewards and punishment. Thus, in order to prevent GDP view of achievements under the guidance of governments around the steel mills senior managers with a way of expanding investment and production to seek short-term performance, to prevent short-term behavior of state-owned steel mills operating.
Secondly, to insist on the separation of enterprise from. In China, and separates from the last century, the 1980s and 1990s, although in recent years has been rarely mentioned, but the senior management of the state-owned enterprise, still need to remove the traces of the "government leaders" to do in business not politics. Government officials, selection considerations, to avoid government leaders, executives of state-owned enterprises directly to avoid business performance as a springboard for political capital.
In addition, to encourage the private economy into the steel industry. In all levels of government regulation under the pressure of the steel industry also exists a unique glass door phenomenon "of private capital in the investment field and the capital of the state-owned enterprises unequal access threshold.
Private steel mills faced with the dilemma of policy development, the steel industry, there have been some difficult to understand the phenomenon. For example, the end of 2010, domestic Hebei Province, a large steel mills so-called "incremental equity integration" restructuring mode, do not spend a penny in exchange for 10% of the shares of the private steel enterprises with their own goodwill, management, purchasing and marketing channels and other resources. The so-called restructuring of the past year and a half, private enterprises still operate independently, the group and the sub, it is interesting.
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