Loss of the steel industry to the Midwest 33 percent demand

Loss of the steel industry to the Midwest 33 percent demand

Loss of the steel industry to the Midwest 33 percent demand

recent years, the entire steel industry profit margins continued to decline to enter the era of meager profit. Last year, the steel industry profit margins of 2.4 percent from January to April this year, the steel industry profit margins further decline of only 0.1%. The data show that the steel industry, industry-wide losses in January and February of this year, reducing losses in March, but with the steel prices fell again in April, industry losses increase, the loss of the steel industry for 33%.

reduce cost and improve industry concentration

high cost of steel for greater than demand, industry concentration is not high lead the steel industry as a whole low-profit. Sponsored by Baoshan Iron and Steel Institute of Economic Research, Wu Dong, president of Eagle in the previous period, “the Ninth Shanghai Derivatives Market Forum, said that if you want to change the low-profit situation, we must reduce costs, adjust the concentration of the industry.

talk about the cost issue, Wu Tung-Ying said that the trend of rising costs of upstream raw material prices and energy saving will not change, but steel prices through technological upgrading and expanding scale to reduce costs. Iron and steel enterprises should consider the business choices and patterns of innovation, improve production efficiency, enhance competitive differentiation, and expand the industrial chain, and integrated with circulation enterprises, the steel industry can not lead to the manufacturing process, in order to reduce costs and lower quality,http://www.china-steel-parts.com. which is a low-cost industry trap. Wu East eagle.

“In recent years, the national policy to constantly adjust, but the steel industry, industrial concentration has decreased year by year. “At the meeting, China Steel Association Deputy Secretary-General Qu Xiuli of the steel industry, the low concentration agrees, she believes that the biggest problem facing the entire development of the industry is the industry concentration is low, steel production disorder.

data show that from January to April this year, the entire steel industry investment in fixed assets has exceeded more than 10 billion yuan, representing an increase of 8% -10% Japan because of high industrial concentration has remained about 70% of the operating rate, so they can maintain a stable level of profitability.

steel industry must change the way, depend on the scale is not effective to rely on the variety, quality to profit; second to adjust the structure , including some large industrial structure, as well as internal product structure, organizational structure; to strengthen the management, including procurement of raw materials management, sales management, and construction of industrial chain. “Qu Xiuli said.

the

steel industry needs to the Midwest

“downstream steel demand is slowly decline, the period of a few years ago 10% -20% compound annual growth rate does not have the steel industry will enter a period of slow growth, the industry must adapt to this state. Wu Tung Ying pointed out that the steel industry has entered a period of slow growth, but not a sunset industry, Chinas steel industry, there is still room for development.

He explained that the uneven development of Chinas steel industry as a whole structure, the eastern region has now entered a period of industrialization, the central region is in rapid development of the industrial era, the central are from eastern industrial transfer. At present, the eastern part of the demand for steel declined, the central region of the rising demand for the next 10 years, the western region of the demand for steel will rise. The same time, Chinas urbanization rate is less than 50 percent, from about 75% of the standard there is a certain gap between the development of the steel industry is still a certain space.

“At present, China is in the middle of the industrialization, industrialized the mid-to late transition is the demand for steel by the rapid growth to slow growth period, but overall still in the growth period. Metallurgical Economic Development Research Center Renshi Hong Wei at the meeting analyzed the direction of the consumer of the steel industry during the second five, the countrys rapid construction of the railway network and the transfer of industrial clusters, the formation of the flow field of steel consumption.

rapid rail network, mainly in the northeast and western regions, construction continues to progress. Industry cluster is transferred to the central and western regions, each region has the positioning of the industrial clusters, such as Anhui, doing some new construction of industrial clusters, these are the formation of a new field of steel consumption. “Stone said Hung Wei, iron and steel industry in accordance with the” 12th Five-Year “plan-oriented, Xinjiang, Inner Mongolia, Gansu, steel mills in the construction, Heilongjiang, Guangxi, Guangdong also has steel in construction projects, these will be more reasonable steel production layout also bring steel production capacity for further expansion, driven by changes in the new steel flows.


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