Stainless steel production increased in most countries during 2014
Iron and steel industry association secretary China long Zhang Changfu in the “2015 China iron and steel market outlook” and “confessed” annual meeting, in the iron and steel industry of our country competition means a single, limited to the price competition.
However, the iron and steel industry has huge development space and market. So, to have confidence, the new normal for the steel industry is a new challenge, but also new opportunities.
Competition means a single relative
One is from the iron and steel production and consumption, taking into account the 2014 export volume increased significantly, prices fell more than, the market oversupply situation and performance of this excess capacity is still very obvious. The two is the fixed asset investment drops compared to the same period, the investment structure has been greatly improved, mainly concentrated in the deep processing of mining, environmental protection, steel products, social investors more rational. The three is investment in improved iron mines, iron ore into a buyer’s market, we can not control, could face the challenge, is the iron and steel industry. The four is the steel industry differentiation in aggravate, due to steel demand slowing down, low degree of industry concentration effect of many factors, the month of 2014 steel index is always less than 100 points.
Zhang Changfu points out, the member enterprise average debt to asset ratio as high as 72%, the entire industry profit rate is 70%. The first 10 months of 2014 compared with the previous year, crude steel production rose 0.7%, but sales fell 0.3%, the financial costs increased by 20.6%, accounts payable, year-on-year growth of 9.98%, close to 10% etc.. This a series of business indicators are weakening, show business production environment has become more serious. In this situation, a number of enterprises rely on their own innovation and reform of internal management, actively respond to changes in market development, enterprises showing a lot of bright spots. At present, industry differentiation is intensifying. Only by transforming the concept, deepening reform, actively respond to changes in the market development, to achieve development in the market competition environment.
Zhang Changfu pointed out that, to resolve the huge excess capacity is a long-term and arduous work. In 2013 the steel industry on the national GDP contribution rate is 5.6%, the automobile industry is 2%, iron and steel industry top ten enterprise market share is 37.5%, the top ten enterprises of automobile market share is 88.4%, the degree of concentration has a world of difference.
Therefore, the degree of concentration is very low in iron and steel industry, it is difficult to effectively implement industry self-discipline, is very difficult in the industry, is very difficult to control the output. Industry Association of spontaneous regulation of yield, yield is the impact of price regulation, but it cannot affect the dispersion, a mess, so we must face and solve. The enterprise brand construction is lagging behind, slowing demand environment, the enterprise in order to keep their market share, or to expand market share, competition means is mainly price competition, lead to industry competition means a single, is the price war.
Urgent need to upgrade the level of internationalization
Zhang Changfu pointed out that, in addition to lag industry dispersion, the brand construction, the level of internationalization of China’s iron and steel industry is relatively low.
2014 1~10 months, China’s total export of 83100000 tons of steel, the whole year is expected to export 90000000 tons. China has become the world’s steel exports since 2006 in China, but China’s iron and steel exports have not established the global standardization, international marketing network. China’s steel trade mainly self marketing, no format management relationship is very deep marketing. Concern is the Hebei iron and steel, recently acquired international brand of Switzerland, established a global marketing network.
In addition, the path of China’s iron and steel industry going out of the still relatively simple, internationalization go out there are still obstacles, including the mechanism and institutional barriers, opening level is still low. Therefore, the iron and steel industry overcapacity and structure adjustment of focus has three aspects should be paid attention. To improve the industry concentration degree, enhance the industry supply and demand relations and governance capability and the effect of regulation, enhance the degree of concentration can stabilize the market, stable prices.
Two must strengthen the brand construction, guide the enterprise to the high-end, achieve the orderly competition. Especially to guide enterprises to the quality of war fighting, not price war. Cost reduction can not be at the expense of quality, should be in the same quality than price, delivery condition, also has the advantage of. In the current quality information of our steel products is not very transparent case, a single spell price, is full of unfair competition, will produce adverse elimination effect, that do not comply with industrial policies. So a single spell the price will make the quality of the spell more low, price is often the quality standards, guide enterprises does not guarantee quality level spell price, negative effect is relatively large, should cause the industry wide concern and attention.
Three to enhance the level of internationalization, internationalization should be resources, market, talents, capital internationalization. Instead of selling steel, nor sell ore. To adapt to the development of iron and steel industry policy, the connotation is rich in iron and steel industry to go out, the realization of China’s iron and steel change from weight type to quality type, China steel not only is the scale, and is the quality, competitive type.
The new normal is a challenge and an opportunity
Outlook 2015 iron and steel industry, Zhang Changfu pointed out, 2015 will be the “Twelfth Five Year” development planning of the ending of the year, but also comprehensively deepen reform and expand opening years. Zhang Changfu pointed out that the iron and steel industry, there is a huge development space and market. So be confident, the new normal in the iron and steel industry is a new challenge, but also new opportunities.
One is the total amount of iron and steel products demand continues to maintain the basic stability of amplitude fluctuation, not more than 3%. Downstream manufacturing tend to be diversified, in
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