Mergers and reorganization may stimulate steel market

Since the founding of the PRC, the Chinese steel industry is developing rapidly. Especially since the reform and opening up, Shanghai baosteel, tianjin seamless steel pipe has the world’s advanced level of the construction of large-scale iron and steel enterprises to make the Chinese steel industry rapidly in the world. Sustained high speed after capacity expansion, however, inevitably appeared serious excess capacity, backward production mode, low management level of the iron and steel enterprise is in an unprecedented wall.

Continued downturn in steel prices, iron and steel industry development road in where? Although sharp downward steel market, capital market for steel hype still, in the first half of the shares of the listed steel companies soared, the reason is that investors believe that the iron and steel enterprise performance, the possibility of merger and reorganization to improve.

Iron and steel industry is at a very difficult position, the central issued the guidance of iron and steel enterprise reform in state-owned enterprises, urge the merger and reorganization of state-owned enterprises, but the social capital of state-owned steel mills of the wait-and-see mood is relatively strong. Improve the state-owned steel mills, on the other hand, management mechanism, improve the efficiency of enterprises, it is not that can be effective in the short term.