There are three problems in China's iron and steel industry
Author：adminView：5245adddate：2016-11-28
One overcapacity, highlighting the contradiction between supply and demand
The second half of 2011, the global economy dragged down by the European debt crisis slowdown, China's steel exports sluggish, increasing domestic market pressures. Countries to tighten monetary policy to cope with domestic high inflationary pressures, fixed asset investment growth rate down. Construction, shipbuilding, machinery, automotive, household appliances and other steel downstream industry growth is also slowing down, downstream demand weakened, steel consumption growth fell. At the same time, iron and steel enterprises in order to keep market share and production marginal benefit factors, the willingness to cut production initiative, in the context of weakening demand at home and abroad, the rapid release of the capacity to highlight the contradiction between supply and demand. After the reduction in steel demand, some iron and steel enterprises through maintenance, or adjust the proportion of ore into the furnace to reduce production and other ways to reduce production, thereby ensuring the normal operation of the industry, ease supply and demand contradiction.
Second small enterprises substantial increase in industrial concentration slowly
2011, China's key steel production accounted for the proportion of the whole industry fell from 89.5% last year to 86.3%, down by 3.2 percentage points. In 2011, affected low-income housing demand, construction steel profitability in the plank, provide market space for the production of construction steel products mainly of small and medium-sized enterprises, substantial increase in output of iron and steel enterprises, the growth rate significantly higher than the national average, and this is one reason for the whole industry to reduce the concentration of the.
Three high cost, industry profit margins dropped significantly
In 2011, China's imports of iron ore imports average price of 163.8 U.S. dollars / ton, year-on-year growth of 27.1%; iron ore prices pushed up the cost of production of iron and steel enterprises, the cost of sales of iron and steel enterprises increased more than sales revenue growth rate. Key large and medium-sized iron and steel enterprises sales margin was 2.42%, down by 0.58 percentage points, well below the national average of more than the same period of industrial enterprises average level of 6.47%. Which in October, in November the national key large and medium-sized iron and steel enterprises sales profit margin of only 0.47% and 0.43%, a record low since June 2009. And in January 2012, China's steel industry profit margins have been negative, the steel industry profit margins in the steel mills can gradually break the bottom line can withstand. Currently the industry has entered a comprehensive loss. Iron and steel industry in a substantial increase in costs, production capacity under the dual pressure of rapid release, profitability continued to decline.
The second half of 2011, the global economy dragged down by the European debt crisis slowdown, China's steel exports sluggish, increasing domestic market pressures. Countries to tighten monetary policy to cope with domestic high inflationary pressures, fixed asset investment growth rate down. Construction, shipbuilding, machinery, automotive, household appliances and other steel downstream industry growth is also slowing down, downstream demand weakened, steel consumption growth fell. At the same time, iron and steel enterprises in order to keep market share and production marginal benefit factors, the willingness to cut production initiative, in the context of weakening demand at home and abroad, the rapid release of the capacity to highlight the contradiction between supply and demand. After the reduction in steel demand, some iron and steel enterprises through maintenance, or adjust the proportion of ore into the furnace to reduce production and other ways to reduce production, thereby ensuring the normal operation of the industry, ease supply and demand contradiction.
Second small enterprises substantial increase in industrial concentration slowly
2011, China's key steel production accounted for the proportion of the whole industry fell from 89.5% last year to 86.3%, down by 3.2 percentage points. In 2011, affected low-income housing demand, construction steel profitability in the plank, provide market space for the production of construction steel products mainly of small and medium-sized enterprises, substantial increase in output of iron and steel enterprises, the growth rate significantly higher than the national average, and this is one reason for the whole industry to reduce the concentration of the.
Three high cost, industry profit margins dropped significantly
In 2011, China's imports of iron ore imports average price of 163.8 U.S. dollars / ton, year-on-year growth of 27.1%; iron ore prices pushed up the cost of production of iron and steel enterprises, the cost of sales of iron and steel enterprises increased more than sales revenue growth rate. Key large and medium-sized iron and steel enterprises sales margin was 2.42%, down by 0.58 percentage points, well below the national average of more than the same period of industrial enterprises average level of 6.47%. Which in October, in November the national key large and medium-sized iron and steel enterprises sales profit margin of only 0.47% and 0.43%, a record low since June 2009. And in January 2012, China's steel industry profit margins have been negative, the steel industry profit margins in the steel mills can gradually break the bottom line can withstand. Currently the industry has entered a comprehensive loss. Iron and steel industry in a substantial increase in costs, production capacity under the dual pressure of rapid release, profitability continued to decline.
