The hottest contradiction between supply and deman

2022-07-24
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Outstanding contradiction between supply and demand "trade in the old" to solve the difficulties of iron and steel

outstanding contradiction between supply and demand "trade in the old" to solve the difficulties of iron and steel

guide to information on China's construction machinery

Guide: from the rise in 2007 to the present, the whole industry has fallen into the edge of loss. In just a few years, China's iron and steel industry has rapidly experienced the transformation from prosperity to decline, The earnings per share of listed steel enterprises also fell from 0.63 yuan in 2007 to 0.14 yuan in 2011. China's crude steel production capacity has exceeded

in just a few years, China's iron and steel industry has experienced a rapid transition from prosperity to decline. The earnings per share of listed steel enterprises also fell from 0.63 yuan in 2007 to 0.14 yuan in 2011. However, China's crude steel production capacity has exceeded 900million tons. Last year, the demand for steel was less than 700million tons. The serious pressure of overcapacity is like a mountain under a mountain

in order to get rid of the profit dilemma, the iron and steel industry has accelerated the pace of joint restructuring and improving the degree of concentration. Under the guidance of the policy of "eliminating the backward", "equal replacement" and even "reduction replacement", a number of large steel production bases are being built in coastal areas. At the same time, the once popular horizontal mergers and cross regional restructuring among steel enterprises are gradually being replaced by industrial integration within the group and vertical restructuring of upstream and downstream enterprises

however, steel enterprises are keen on whether the "old for new" restructuring within the group can solve the problem of overcapacity, and whether it will bring new overcapacity? Can large steel enterprises solve the contradiction of "integration but inconsistency" in the process of integration? Where is the future way out after the reorganization? At the time of falling into a new round of restructuring upsurge, these issues are worthy of more calm thinking by the steel industry

aimed at industrial upgrading

different from the previous strong enterprises' merger of enterprises on the verge of bankruptcy, in recent years, the joint restructuring of iron and steel enterprises is more a combination of strong enterprises or spontaneous restructuring and internal integration of the group to meet market challenges, so as to achieve industrial upgrading and control of resources. Under the guidance of the national policy of "equal replacement" and "reduced replacement", many large-scale iron and steel projects along the coast are also stepping up the pace of construction

Recently, Baosteel Zhanjiang iron and steel project, Wuhan Iron and steel Fangchenggang iron and steel base project and Shougang steel relocation project have been reviewed and approved by the national development and Reform Commission. Previously, the approval of large-scale steel projects had been hidden for three years

will the approved construction of ten million ton projects trigger a new round of overcapacity? "At present, the construction of new projects is indeed facing the challenges of overcapacity and difficult operation of steel mills." Xu Zhineng, my director of steel information, can match the materials to be tested, said Xiang Chun. However, from the perspective of eliminating backward production capacity and adjusting industrial layout, these projects belong to "trade in". We will shut down some backward production capacity or low-tech production capacity in Guangdong and Guangxi, and then add new production capacity. In this way, the total production capacity will not increase significantly, and the industrial layout will shift from the mainland to the coast

insiders pointed out that since the "Eleventh Five Year Plan", large steel mills have launched a number of plate projects, such as Shougang Caofeidian, Angang Bayuquan and other projects, resulting in rapid growth of plate production capacity. However, as the plate demand mainly comes from the manufacturing industry, the downstream demand growth is not as fast as the plate capacity growth, resulting in a phased surplus

"although there is surplus, the two major iron and steel base projects will not be completed until twoorthree years later. At that time, the market environment may change." Xuxiangchun believes that at present, some leading steel enterprises have strong technical equipment and R & D capabilities, and their products have certain competitiveness. In addition, the newly-built production capacity is located in the coastal area, which is one of the few exhibitions near the consumer market in Zhejiang province that has won this honor. From the perspective of geographical location, it has advantages

dengqilin, general manager of WISCO group, also said that after WISCO's iron ore is transported from overseas to Ningbo Beilun port every year, it needs to be transported twoorthree times to reach WISCO's industrial port. The logistics cost of "lost" in the Yangtze River is as high as more than 2 billion yuan. According to jc/t864 ⑵ 000 estimation of polymer lotion building waterproof coating in the industry, the freight expense of WISCO can be directly saved after the completion of Fangchenggang project

in addition to "eliminating the backward" and "replacing the old with the new", steel enterprises are also strengthening the expansion of upstream and downstream industrial chains: through the merger and integration of upstream resources, improve the resource guarantee ability and reduce the industrial operation risk; By extending to the downstream industrial chain, further improve the market control ability

In August, 2008, WISCO and Shanxi Coking Coal Group signed a strategic cooperation framework agreement and a medium - and long-term cooperation agreement on coal purchase and sales, and both sides jointly invested in the construction of WISCO Fangchenggang coking project; In October, 2006, TISCO signed a long-term strategic cooperation agreement on the supply and demand of stainless steel scrap with Tianjin Yingchi Stainless Steel Co., Ltd., realizing the "marriage" between the world's largest stainless steel company with the largest professional stainless steel scrap purchasing company in North China

at present, the downstream integration of steel enterprises has extended to the "non steel" field, and has become an important source of profits. According to the data of treasure island, compared with the main steel industry, the non steel business is very profitable. Last year, the overall sales profit margin of WISCO group was 1.67%, while that of the non steel industry reached 3.47%; The overall sales profit margin of Jigang Group was 0.71%, and the non steel industry reached 4.11%. In view of this situation, most domestic steel mills have mentioned in their latest plans to vigorously increase the proportion of non steel business in revenue. Shagang has made it clear in the "12th Five Year Plan" that it will achieve an annual sales revenue of 300billion yuan, of which the operating revenue of non steel industry will reach 100billion yuan, and the benefit contribution will strive to reach more than 30%

it is worth noting that the current merger and reorganization drama jointly led by state-owned enterprises and private enterprises is also constantly unfolding. Since 2011, state-owned iron and steel enterprises in many provinces have begun to strengthen cooperation with private iron and steel enterprises in the province by means of gradual equity integration. TISCO and Ansteel have integrated private steel enterprises through progressive equity integration in Shanxi and Henan respectively, enhancing their competitive advantages in the region

"in the future, large iron and steel enterprises will focus more on those enterprises close to the market and resources to further optimize the layout of China's iron and steel industry while improving their competitiveness." Lixinchuang said

In the first quarter of this year, China's iron and steel industry fell into the first industry wide loss since the new century. In this context, accelerating joint restructuring and improving concentration has become the most urgent requirement of the steel industry, and large steel enterprises have accelerated the capacity integration within the group

recently, Shougang Co., Ltd., Chongqing Iron and steel and other steel enterprises have intensively disclosed the restructuring draft, involving assets of more than 10 billion yuan. The following assets and liabilities of Shougang Iron and Steel Co., Ltd. belong to ironmaking plant, coking plant, etc., and all equity of Shougang Jiahua building materials and Shougang FuLuShi color coated plate held by Shougang Iron and Steel Co., Ltd. are replaced with all assets of Hebei Shougang Qian'an iron and Steel Co., Ltd. subordinate to Shougang head office. The value of the assets put in is 18.370 billion yuan and the value of the assets put out is 6.323 billion yuan. For the balance, Shougang issued about 2.8 billion shares to Shougang Corporation at the price of 4.29 yuan/share

the restructuring plan of Chongqing Iron and steel is more complex. The company plans to issue no more than 1.996 billion additional shares to Chongqing Iron and steel group at a price of 3.14 yuan per share. In addition, it also plans to purchase the assets and liabilities of Chongqing Iron and steel group with an estimated value of 19.834 billion yuan and 10.728 billion yuan at a price of no more than 538million yuan. At the same time, Chongqing Iron and steel plans to raise no more than 2.2 billion yuan in cash by private placement of no less than 2.83 yuan/share

not long ago, Linggang also announced the restructuring of major shareholders and the change of the actual controller of the company. Lingyuan Iron and Steel Group, the largest shareholder of the company, was restructured, and China Hong Kong China Travel Service Group officially took over. Tangshan Guofeng iron and Steel Co., Ltd., a subsidiary of CTS, is one of the largest hot-rolled strip producers in China, with an annual output of 7.5 million tons of steel, 7.2 million tons of iron and 5.8 million tons of rolled products

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