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    Reorganizatioin of stainless steel after national covention

    Time: 2015-08-11 13:46:23

      Baosteel Wuhan Iron and Steel reorganization Write confirmed


      China Steel Industry Association yesterday held information sessions in 2015 came the third message, "Thirteen Five" during the development of the steel industry targeted: to resolve the overcapacity, large-scale structural reorganization, to curb the industry disorderly competition, increase product innovation, promote green development, and encourage enterprises to go.


      Main and medium-sized steel enterprises increased losses


      2015 for the steel industry, but also a difficult one. The first half of 410 million tons of crude steel production, fell 1.3%, which is the first decline in crude steel production in the past 20 years. CISA judge, following the 2013 crude steel apparent consumption reached a peak in 2014, China's crude steel production is likely to enter the symbol of the peak area. According to foreign experience, after crude steel production reached a peak, the downward trend in the vicinity of a peak after a certain period of volatility.


      The biggest problem is still the industry oversupply, steel prices continued to new lows. In the first half of this year, the composite price index of steel has not only failed to slow down the momentum, but more intense, down 19.7% over last year's 16.2 percent decline.


      Year, iron ore prices fell, but small. Especially after April, China's iron ore price index rose as high as 26.4 percent, while steel composite price index fell by 10.2% over the same period. In this context, the main business losses increased steel prices. The first half of medium-sized steel enterprises realized profits of 39.05 billion yuan, down 14.1 percent; and the main business losses 21.68 billion yuan, increasing loss of 16.768 billion yuan; 43 loss-making enterprises accounted for 42.6% of households in the statistics of member companies.


      Therefore, "Thirteen Five" plan to resolve overcapacity will be a focus. China Steel Association believes that steel overcapacity short-term will not be eliminated.


      Large structural restructuring imperative


      CISA vice chairman Zhu Jimin said, "Thirteen Five" to conduct large-scale structural steel industry restructuring. "Regional, large special breed, and corporate structural reorganization. Now the steel industry is too dispersed, when the industry is not good, blind competition between enterprises and disorderly competition."


      Steel industry is more dispersed, state-owned enterprises accounted for about half of capacity, and therefore steel enterprises mergers and acquisitions has been a hot topic in the industry. However, state-owned steel enterprises mergers and acquisitions are few success stories. Although some consolidation on the surface, but the actual operation is still independent, did not carry out effective integration.


      Zhu Jimin said steel enterprise restructuring difficult, but also advance, otherwise the industry is difficult out of the woods.


      Earlier, market rumors, Baosteel and Wuhan Iron and Steel industry in the first three will be reorganized. Yesterday, Zhu Jimin reply to reporters, said the current restructuring in two companies and official level have not been confirmed.


      Innovation should be strengthened


      Currently, China Steel Association has established a number of Industrial Technology Innovation Alliance, steel innovation achieved some success, but on the industrial transformation and upgrading and industrial development needs is concerned, will be further deepened.


      Steel structure to promote, for example, promote the use of steel structures is progressing also slow, although there is a wide range of applications in the field of super-tall, long span space structures, industrial plants, etc., but in terms of housing, urban construction and other applications are still vast room for improvement.


      Next, the steel industry to rely on Industrial Technology Innovation Alliance has been established through cooperation and coordination on the downstream industries, continue to promote the development and application of iron and steel products, focusing on expanding the scope of application of high-end products, steel products improve application efficiency, promote Steel product life cycle reduction and green.


      At the same time, to solve the high-end product homogeneity mode and method of competition by coordinating product development and applications, from the source to break the vicious competition problem, by evaluating the product's specifications, guidance applications. (Shanghai Securities News)