The most popular steel enterprises with overcapaci

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"The contradiction of overcapacity in the steel market is still prominent, the growth of demand can not catch up with the expansion of production, and the steel price has fallen into a trough after rising a wave before the Spring Festival." A few days ago, Zhou Jie, manager of Baosteel Guangdong Shaoguan Iron and steel special steel division, told that although the state emphasized the elimination of settled production capacity, many steel mills still took the opportunity to eliminate small projects, and launched a large digital display automatic impact testing machine to generate signals through high-speed load measurement sensors, resulting in a high actual production capacity

Zhou Jie made the above remarks when attending a small salon held by Shaogang and Guangzhou Iron and steel trading center. Recently, the continuous downturn in the steel market has made steel traders sad

a steel trader reluctantly said, "now the more steel mills produce, the more losses they lose. The average purchase price of scrap is more than 2500 yuan a ton, the processing and transportation costs are more than 1100 yuan a ton, and the total cost is more than 3600 yuan a ton, but the selling price is only more than 3300 yuan a ton. Our traders dare not have inventory."

data show that in May, steel prices accelerated their decline, with major varieties falling by 5% to 10% within the month. Among them, Shanghai 5.5mm hot coil closed at 3400 yuan/ton, down 8.4% from the end of April, down 20.9% from the high point at the beginning of the year, and the local tertiary rebar fell to 3250 yuan/ton, breaking the low point of last year

"in May, due to the contraction of site procurement, the superposition of negative factors such as empty macroeconomic data and the consistent reduction of ex factory prices of the three major steel companies for the first time in the year, the market pessimism was further fermented, and businesses had a strong willingness to exchange prices for volume." Huatai Securities pointed out that in April, Angang Steel and WISCO successively lowered their ex factory prices. Baosteel's prices were flat on the surface in May, but in fact, it was necessary to spend money on mainstream products of yuan/ton to ensure safe ordering preferences. Steel mills' enthusiasm for stocking goods also continued to decline, and there was a "panic" selling. At the end of May, social inventory fell 9.21% month on month, to 18.309 million tons

the difficulty in the development of domestic friction and wear testing machines is the weak market demand. Although the PMI of the steel industry rose for two consecutive months in May, the absolute value is still the lowest in the history of the same period, and is still below the boom and bust line, only 46.8%. On the other hand, steel production has repeatedly reached new highs. According to the National Bureau of statistics, the average daily output of crude steel in China was 2.208 million tons in February, a record high, and 2.218 million tons in April. In addition, according to the statistics of China Steel Association, in mid May, the average daily output of crude steel in China was 2185400 tons, still at the second highest level in history

due to the impact of market downturn, continuous losses of steel mills and discretionary procurement, the price of iron ore last month hit a new low in the year

"generally speaking, the decline of iron ore price is lower than that of steel price, so it is still difficult for steel enterprises to substantially improve their profits. In April, the sales profit margin of large and medium-sized steel enterprises was only 0.05%." Zhou Jie stressed that compared with Europe and the United States, China's steel market is still taking the route of large-scale, and no good way has been found for transformation and adjustment. "After the financial crisis, there was a 4trillion stimulus plan, which will not exist now, and the contradiction between supply and demand is more prominent."

Huatai Securities believes that the central government has made it clear that there will be no large-scale stimulus policies in the near future. The government's determination to adhere to economic transformation is very firm, which will undoubtedly cause great bad news for traditional cyclical industries such as steel

facing the severe market situation, some steel enterprises began to demand the transformation and upgrading of industries. For example, after Baosteel entered Shaoguan Iron and Steel Co., Ltd., it was determined to build it into an important R & D and manufacturing base of Baosteel in South China, and invested 2.45 billion yuan to build a domestic first-class bar production line without major revision of the basic principles, so as to produce special steel products that can replace high-end imports

Zhang Wenhui, Secretary of the Party committee and deputy general manager of the special steel business department of Shaogang of Baosteel Group, said that during the "12th Five Year Plan" period, the special steel market is entering a golden time of rapid development. It is expected that in 2015, the demand for special steel bars in China will reach 90million tons, and that in Guangdong will reach 2million tons

in addition, with the help of futures to hedge the market, the risk of price fluctuations has also been paid more and more attention. On June 6, Guangzhou Iron and steel trading center and ITC futures jointly established a steel futures training and exchange center to guide steel mills and steel traders to carry out effective risk management through futures. (South)

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