Steel sold as "radish prices and steel prices into the low-profit dilemma
"Due to full competition, the survival of the steel industry is very difficult. Until now, the steel industry out of the shadow of the financial crisis, especially since the fourth quarter of last year, the steel industry for several months in the industry-wide loss of state, which in the past more common. "George Chen, general manager of Shandong Iron and Steel Corporation, told reporters after the financial crisis facing the steel industry to re-shuffle, the entire industry profit rate is only about 3 percent, a huge loss of pressure. The profit rate is a real industrial earnings minimum, if you subtract the profitability of the non-steel and ore, the industry is actually at a loss.
In recent years, China's steel industry, market demand in the doldrums, and prices continue to decline. The steel industry profit margins from 8.11% in 2004, all the way down to 2.57% in 2010. In 2011, the China Iron and Steel Association member companies average sales profit rate of only 2.42%, far below the average level of profitability of industrial enterprises above the same period the national scale. Commission by letter, according to Shandong Province, the first five months of this year, Shandong Iron and Steel industry profits and taxes, profits were down 30% and 45.8%, respectively. Which plate prices up in May, the chain fell 15.2 percent and 5.2 percent. China Steel Association data show that the first five months of this year, large and medium-sized steel enterprises realized profits of only 2.533 billion yuan, a drop of 94.26%; loss-making enterprises amounted to 11.749 billion yuan, an increase of 27.38 times.
The industry's post-market situation is not optimistic about George Chen believes that the predetermined growth rate of gross domestic product this year, 7.5%, will the steel industry have a direct impact, plus the entire industry oversupply, the annual steel market will not last year. If competitiveness is ranked the world's top three Baosteel main business losses and other enterprises of the day even worse. It is understood that Baosteel this year, the main steel business is profit status, a quarterly profit of only 160 million yuan. Although the industry "gold, four silver and five" argument, but the business situation has not improved. Wuhan Iron and Steel Group has full-year profit by 30 billion reduction of 1.6 billion yuan, general manager Deng Qilin said that the current steel business benefits have fallen sharply, the whole industry suffered the most difficult period in the new century.
Capacity expansion worrying 900 million tons of crude steel sold to
Current capacity surplus industries such as textile, machinery manufacturing, and other days is not easy, but why was the lowest level of profits of the steel industry? Shandong Iron and Steel Group Co., Ltd., chairman of Zouzhong Chen said, this is mainly due to the iron and steel enterprises. The vicious competition among and between enterprises, has failed to effectively carry out the consolidation and reorganization. In recent years, China's crude steel production capacity per year to 7% increase in growth, no major change of the high status of the steel industry, the high crude steel production. Since 2008, Shandong Iron and Steel production and operation encountered great difficulties in capital operation is fairly smooth, if continued loss, coupled with the pressure of huge loans, the enterprises will not be able to.
According to the China Steel Industry Association, 2011, China's crude steel production of 683 million tons, an increase of 8.9%. Li Shijun, chief analyst of the China Steel Industry Association, believes that the "12th Five-Year" period, China has not yet completed the industrialization and urbanization, growth in the number of the "12th Five-Year" period China's steel demand will continue. He predicted that the "12th Five-Year" in China during the crude steel consumption will be 670 million to 850 million t of crude steel consumption growth of 2% -7%. When the external demand, the tide receded, the domestic excess capacity to get to the bottom.
According to the statistics of the China Metallurgical Construction Association, September 2011, data released by the 46 design units, steel-making capacity of 55.04 million tons under construction, is the design capacity of 19.3 million tons, is being planned steel production capacity of 21.08 million tons, during the survey period to stop the construction scale of 6 million tons. If these planned projects started construction and the formation of production capacity, new crude steel production capacity of nearly 90 million tons. The industry estimates, China's crude steel production capacity has expanded to 900 million tons, the actual production of 700 million tons.
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