Can 'retreat' take a new path

by:ChangZeng     2021-02-20
Since entering the new century, China's steel products industry Q345B angle steel has been struggling for four consecutive years on the profit and loss line. Today, demand continues to be weak, steel products prices continue to fall, and ore prices remain high.   According to the State Council’s plan for screening outdated production capacity last year, China’s steel industry will tighten production capacity by 80 million tons within five years, and 60 million tons will fall in Hebei, the largest steel province. In the 'Air Pollution Prevention and Control Action Plan' announced in the same year, the State Council once again emphasized the selection of backward production capacity and overcapacity management for the steel industry. It clearly stated that 15 million tons of iron and 15 million tons of steel would be screened in 2015. In the area where the screening task is completed, strictly control the funded projects of the state organization, and suspend the processing of approval, approval and filing procedures for the key occupational construction projects in the area. In 2016 and 2017, the screening policy for backward production capacity in each region is planned to be wider and more standardized, and a batch of backward production capacity should be screened. According to the China Iron and Association, from January to November 2013, the member companies of the China Iron and Association that were included in fiscal calculations achieved a profit of 16.18 billion yuan (a loss of 756 million yuan in the same period in 2012), and the profit rate of sales revenue was only 0.48%. It is at the lowest level among all industrial occupations. Although Q345B angle steel has turned losses into profits in all occupations, the steel company still has a loss of 27.9%. In Handan and Tangshan, some steel companies have stopped production due to environmental protection failures. It is understood that a planned steel plant with an annual output of 3 million tons requires 5.6 billion yuan in environmental protection equipment investment. The steel plant lacks reserves, banks are tightening borrowing, and environmental protection laws are unprecedentedly strict, and the steel plant can only stop production. 'Under the triple pressure of shopping malls, environmental protection, and administration, steel enterprises have ushered in the'most midwinter'. At the moment, most companies are still clenching their teeth, and a few companies have ceased production or semi-stop production. If the difficult situation continues, capital The chain continues to be serious, and it will not take long for the company to go bankrupt and all to withdraw.” Song Jijun, vice president of Hebei Metallurgical Industry Association, thought.   In fact, the scientific exit mechanism is also conducive to dissolving the opposition of the low concentration of the steel industry in China. Li Xinchuang introduced that the concentration of China's steel industry has been low for a long time, which is much lower than that of Europe, the United States, and Japan. As a result, the improvement of skills, management and operation levels is slow, and it is difficult to form a large-scale superior company as the basis for promotion. Structural Adjustment.   The consensus reached by the steel industry is that the withdrawal of production capacity is not simply a 'subtraction   We have also smelled the scent of a benign career development. 'Most companies are clenching their teeth and insisting on product quality in the mid-to-high-end steel category; in the low-end steel category, they fight for cost control.' Song Jijun said. Obviously, these two aspects are 'make up lessonsFor more information, please visit
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