Ice and fire: where is the road for the steel industry
China's iron and steel industry has experienced a short "era" of high cost and high steel price, and entered the "winter" in 2008. Recently, the executive meeting of the State Council deployed a series of policies and measures to promote the healthy development of the steel market. In the context of the continuous downturn in the steel market and a strong wait-and-see atmosphere, the introduction of new policies related to steel has played a key role in boosting market confidence. China's iron and steel industry shows signs of increased trading and market recovery. However, insiders believe that it will take time for the new deal to fully release its energy
the domestic iron and steel industry has experienced both ice and fire.
China's current steel output has been decisive in Asia and even the world: since 1996, China's steel output exceeded 100million tons for the first time, and has been the world's largest steel producer for 11 years. It is a foregone conclusion to continue to hold this position this year. The proportion of China's steel output in the world's steel output has rapidly expanded from 17.7% in 2001 to 36.4% in 2007, accounting for more than one third of the world's total crude steel output
however, China's iron and steel industry has experienced a short period of "era of high cost and high steel price". 2. adjust the machine conditions according to the size of all finished products, followed by an unprecedented "cold winter". In the second half of this year, steel prices fell sharply and the industry suffered a comprehensive loss. By the end of October, the domestic steel price had fallen by 30% - 40% compared with that at the end of June. At present, the domestic market price is still in a low adjustment state
according to the statistics of China Iron and Steel Industry Association, the manufacturing cost of steel-making pig iron of large and medium-sized iron and steel enterprises included in the statistics in the first three quarters increased by 63.55% year-on-year; In September, 23 large and medium-sized iron and steel enterprises lost money, with a loss of 32.4%; In October, the loss of iron and steel enterprises has expanded to about 60%. In the first 10 months of this year, the sales profit margin of domestic iron and steel enterprises was 5.58%, but in October, the sales profit margin dropped to - 3.23%, showing a clear loss
in addition, the steel industry chain is very long. The upstream involves iron ore (scrap steel, alloy), coal, coke, electricity, transportation and other industries, while the downstream includes construction (real estate), household appliances, automobiles, ships, machinery, railways, highways, bridges and other departments. Under the cold background of the global financial crisis, the long chain of the steel industry is "very injured"
in August, the price of domestic shipbuilding board began to fall, and the average price fell below 6000 yuan in October, a decrease of 25%. Since September, it has become more difficult for shipyards to obtain advance payment guarantee from financial institutions, and many shipyards have cancelled their orders. In contrast, the machinery industry experienced a small month on month decline, but the growth rate also dropped significantly due to the impact of the overall environment. The market share of various steel products is roughly: Infrastructure (about 20%), real estate (20% to 30%), machinery (30%), household appliances (about 10%), automobiles (about 10%) and shipbuilding (about 10%)
market rescue policy the situation of the iron and steel industry is becoming clear.
after mid November, due to the government's continuous introduction of policies and measures to expand domestic demand and stabilize the economy, market confidence has been restored to a certain extent, great progress has been made in the digestion of steel inventory, the market has gradually stabilized, and the prices of thread and wire rod for infrastructure construction have rebounded. However, the demand of downstream users is insufficient to support the price to continue to stabilize, and the market price has been adjusted at a low level
the head of the Ministry of industry and information technology and the national development and Reform Commission disclosed that the government departments will support the development of the iron and steel industry in four aspects: export tax rebate, technological transformation, steel collection and storage, and merger and reorganization. We will encourage the export of high-end products and raise the export tax rebate rate. In 2009, the government will use 15billion yuan to support technological transformation, with the iron and steel industry as the focus. Now, some products that need to be supported by the iron and steel industry have been listed, including high-strength grade III steel bars, high-grade automobile plates, high emission oriented silicon steel, high-speed rail steel, etc
Dingen, deputy director of Beijing Lange Iron and Steel Information Research Center, believes that the 4trillion yuan of domestic demand funds allocated by the state make the iron and steel industry chain face new opportunities, but not all iron and steel products can benefit. Of the 4trillion, 2trillion to 3trillion will fall into the four major fields of highway, port and shipping, railway infrastructure, post disaster reconstruction and low rent housing construction. In addition, four of the 10 national policies to expand domestic demand are closely related to the steel industry. They can contribute about 150million tons of new demand to the steel industry, of which 50million tons of steel demand will be released in the first and second quarters of 2009. The recent resumption of some private steel mills and the stabilization of ex factory steel prices are the signs of the recovery of the steel market. "It is estimated that the new demand in 2009 will be about 88million tons, and greater demand will be released in the following year." According to Dingen's analysis, from the perspective of steel varieties, it has a great positive impact on construction steel products; Heavy rail demand will increase significantly; H-beam will also benefit
the iron and steel industry chain still needs to save itself
in the face of the risks and crises brought about by the financial storm, iron and steel enterprises should establish the awareness of winter and live a tight life; Reexamine the original management mode, draw lessons from crisis events and practice "internal skills". On the one hand, in order to increase strategic assets, improve core competitiveness and integrate resources, the company has developed new organosilicon surfactants AK (7) 715lf and AK (7) 716lf. On the other hand, it also needs to find adverse factors, look for favorable factors, seize opportunities and turn them into opportunities. It also needs to improve the four abilities of prediction, response, reflection and program implementation in crisis management
the general office of the State Council clearly pointed out in the latest "30 Financial articles" that it is necessary to promote the steady development of the futures market and launch new commodity futures such as steel as soon as possible. As the listing of steel futures is getting closer and closer, relevant experts believe that relevant enterprises should make preparations in advance, familiarize themselves with and make use of this financial instrument, so as to increase their competitive chips, which will help steel enterprises alleviate the current difficulties
professionals suggest that under the background of the world financial crisis, all relevant enterprises in the iron and steel industry chain should keep warm together, and the practical significance of producing high-precision tensile strength testing machines is self-evident. They should jointly overcome difficulties, accelerate the establishment of enterprise alliances, and stabilize the relationship between supply and demand. Supply and demand enterprises should proceed from the goal of long-term cooperation, mutual benefit and win-win results, and adhere to the basic principle that the supply and demand sides negotiate independently, that is, the high-speed way during the small and Long Dragon Boat Festival holidays is not free, and that the price is based on quality. Small dealers can adopt the "guerrilla" strategy, and their products have the characteristics of "short, flat and fast", so as to seize opportunities and make quick decisions. Large and medium-sized enterprises, whether production-oriented or trade-oriented, should not engage in "single play": only produce or operate one productDing Gen believes that iron and steel production enterprises should adhere to the policy of determining production by sales and maintain the stability of the market. Under the current market conditions, it is particularly important for production enterprises and trading enterprises to restore confidence by stabilizing the market and restoring reasonable prices. China's economy has broad room for maneuver. As long as it is properly regulated, the steel industry will surely achieve new prosperity. In the China Iron and Steel Industry Association, the most important thing is to have confidence. Lack of confidence may cause greater harm