Steel industry out of the dilemma: opportunities and challenges
For the iron and steel industry, the same spring, the feeling is completely different. At this time last year, has experienced the peak in 2007, the industry development, the steel industry is not only to hand over a beautiful annual reports, industry development, and steel prices rising, the smile the iron and steel enterprise, have the new project. However, a global economic crisis has made the whole steel industry into hot water. In the second half of 2008, steel prices fell sharply, and owned the double pressure of rapid decline, the steel industry operating performance has plunged, iron and steel enterprises to spread the message of "in the cold.
The industry performance fell sharply
On April 30, with the steel class in 2008 annual reports of listed companies, the steel industry operating situation clearly. Statistics show that only four companies of 34 listed steel companies performance year-on-year growth, three big industry leading enterprises such as baosteel, wuhan iron and angang steel performance fell by 49.21%, 49.21% and 49.21% respectively. While all of the listed company performance compared to the overall decline in more than 50%, bayi steel net profit fell by 74% in 2008. In addition to a sharp drop in performance, loss of the company is not in the minority, such as the Great Wall shares, panzhihua steel vanadium, steel songshan, injure shares such as the six total loss of listed companies to reach 3.5 billion yuan. In the first half of 2008 in the first three quarters of this year, even the steel class performance of listed companies is still in the era of high profit. Such as bayi iron and steel from January to September last year net profit of 513 million yuan, the loss is as high as 409 million yuan in the fourth quarter last year.
Annual report, is the leading cause of steel performance downward, shrinking demand in steel prices fell, so that the iron and steel company's gross margin is reduced, and increased inventory impairment losses. , according to data of 34 listed steel companies provision for assets impairment losses as high as 18.5 billion yuan in 2008, including more impairment loss is most serious, the original fuel such as iron ore and steel prices in 2008 plunged after the impairment loss of finished goods. Such as chongqing steel asset impairment loss of 9.775 billion yuan, 2008, 9 times that of 2007.
Said zheng dong, an analyst at guosen securities iron and steel industry, affected by financial crisis, the steel industry in China since last September ran into trouble, as the global economic slowdown, real estate, machinery, shipbuilding and other steel industry into the adjustment, the market supply and demand of reversed, steel prices rising shengshi situation to an abrupt end, the profitability of steel companies also sharply decline. The industry-wide losses continues, the China iron and steel association, according to data released in February this year 1 to 71 large and medium-sized steel mills loss of 1.511 billion yuan, KuiSunMian reached 37.14%; Losses in March continues to increase, even more than 1, the more serious in February.
Promote industry revitalization planning out of the downturn
In the face of domestic and international steel market continues to weaken, wait-and-see atmosphere thick big background, since this year the state council has deployed a series of policies and measures to promote the healthy development of the steel market. Such as the revitalization of the steel industry adjust planning, raising some steel products export tax rebates, policies and measures, including steel futures market, or to the steel industry has brought positive changes. The recent domestic steel industry showed signs of trade increase, the market rebound.
"Since this year, as the country further a series of policies and measures to expand domestic demand and promote economic growth, as a foundation for building, car industry and mechanics industry raw materials of iron and steel industry emerged signs." Ministry of industry and information technology industrial raw materials department inspector Jia Yinsong said. According to the latest figures released by the ministry of industry and information technology, the global 65 other steel-producing countries crude steel production fell by 37% in the first two months of background, in the first quarter of China's crude steel production is still achieve the growth of 1.4%.
Industry for economic stimulus plan to pull effect on the steel industry and the industry have high hopes for the long-term development of the iron and steel industry revitalization planning.
Qin Xiaobin galaxy securities analyst said: "the policy drive and under the environment of continuous improvement is expected, the domestic demand for steel will gradually rise, industry has been basically established, at the bottom of the steel industry profit improvement can be expected." In addition, the experience in the fourth quarter and first quarter of this year two times to inventory im postpartum, prices of raw materials have been consumed, and most companies have provisions in its annual report, a large number of inventory provision in the downstream demand better, and the economic stimulus plan in full swing to drive demand for steel in the second quarter of the peak season coming, iron and steel enterprise profitability is expected to be bottoming out."
Aj securities analysts believe that the iron and steel industry revitalization planning to take care of the short, medium and long cycle of iron and steel industry, especially the backward production capacity and the annexation and reorganization of iron and steel industry development has a positive meaning, iron and steel industry in 2009 is expected to usher in mergers and reorganization. "Merger, acquisition and reorganization in the future for a long time will be the development of steel industry in China." Famous economist, said xu xiaonian, the overall downturn in the industry, steel industry has obvious excess capacity, so the steel industry in the future will be down to very low level of investment. In this case, the integration of the domestic existing resources, optimize the original capacity to become the main direction of industry development strategy.
Still need to speed up structural adjustment out of the woods
There is no denying the fact that although the related data show signs of recovery, but such an iron and steel industry has been out of the woods yet.
The China iron and steel association, according to data released in the first quarter of this year the domestic steel industry still faces excess production volume, the market demand. According to statistics, in the first quarter of this year the national crude steel output of 127.4435 million tons, year-on-year increase of 1.7492 million tons, up 1.39%. The average nissan 1.416 million tons of crude steel in the first quarter, equivalent to an annual output of 517 million tons of crude steel; And the total level rise from month to month, iron and steel production volume significantly higher.
"The international financial crisis in enormous implications for the iron and steel industry at the same time, also be a good time to industrial structure adjustment." Jia Yinsong said. The iron and steel industry revitalization planning from 2009 to 2011 the overall deployment, of the development of steel industry in the amount of compression, eliminate backward production capacity, joint restructuring, technological progress and independent innovation, energy conservation and emissions reduction in the future three years the total development direction of the steel industry.
Ding Gen deputy director of the Beijing Lange steel information research center, said in 2009, the current iron and steel enterprises should actively adjust the structure of varieties, around 4 trillion yuan investment plan and light industry, petrochemical, automobile, equipment, shipping, logistics and other industry adjustment and revitalization of planning, enhance initiative and forward-looking adjusting variety structure, meet the steel industry on the steel varieties, quality and performance of new demand.
Planning objectives for the next step backward production capacity, May 3, the national development and reform commission pointed out that iron and steel to finish out of 300 cubic meters and the blast furnace capacity and 20 tons and below the following converter, electric furnace production capacity. By 2011, then backward ironmaking capacity of 2011 tons, steelmaking capacity of 25 million tons.