Abstract According to the preliminary statistics of China Iron and Steel Association, China's crude steel production capacity is 1.14 billion tons. In this regard, Xu Lejiang, president of China Iron and Steel Association and chairman of Baosteel, said during the 8th executive director (expansion) meeting of the 4th China Steel Association and the model commendation meeting, in 2014...
According to preliminary statistics of the China Iron and Steel Association, China's crude steel production capacity is 1.14 billion tons. In this regard, Xu Lejiang, president of China Iron and Steel Association and chairman of Baosteel, said during the first meeting of the Fourth Meeting of the China Steel Association (Extended) and the Model Workers Commitment Conference, in the first half of 2014, the central and local governments resolved the overcapacity of steel overcapacity. Actively promote. The severe market situation has made enterprises feel the adverse effects of overcapacity on the healthy development of the industry and the deepening of understanding. In the near future, the Ministry of Industry and Information Technology announced the first batch of enterprises to eliminate backward overcapacity. The list involves 44 iron-making enterprises and 30 steel-making enterprises. A total of 48.004 million tons of backward and surplus capacity must be eliminated. Among them, the ironmaking capacity included in the elimination was 25.549 million tons, which was more than 600 million tons more than the annual task set by the Ministry of Industry and Information Technology; while the steelmaking capacity was eliminated by 21.545 million tons, 74.8% of the annual elimination target had been completed.
In this regard, Lange Steel Network analyst Zhang Lin said in an interview with the "Securities Daily" reporter that although the elimination is very "powerful", but the problem of overcapacity is still unresolved and it is still difficult to resolve the industry's embarrassment. “Although the backward production capacity is being eliminated, if the new blast furnace cannot be controlled, the production capacity of the elimination will still be compared with the newly added capacity, and steel production has hit record highs.â€
Xu Lejiang also said at the meeting that the overcapacity problem in China's steel industry is still grim.
High output and low profit
The industry is still at a glance
According to the statistics of the National Bureau of Statistics, in June this year, the average daily output of crude steel in China reached 2,309,700 tons, an increase of 1.66% from the previous month, a record high. In the same period, according to the China Steel Association's ten-year report, the average daily output of key steel enterprises also reached 1.816 million tons, also hitting a record high.
“In the first half of this year, crude steel output was 410 million tons, up 3% year-on-year, and the average daily output reached 2.27 million tons. In addition to the February Spring Festival factor production, the output in other months is still around 70 million tons, of which March and More than 70 million tons in May," Zhang Lin said.
Taking the three-level rebar as an example, from the historical price data, the average price of the top ten cities in China has dropped from 5,200 yuan in 2011 to the current 3,100 yuan. Although there is a small rebound in the middle, the rebound space is over 500 yuan. No big bull market appears. Among them, from January to July 2011, the range fluctuated between 4,300 yuan and 5,200 yuan. In January and July of 2014, the fluctuation was adjusted from 3,100 yuan to 3,500 yuan. The overall trend is still downward.
“Steel production hit a record high, and the price of third-grade rebar has dropped from 3,500 yuan to 3,100 yuan, down 11%. This shows that there is a serious imbalance between supply and demand,†Zhang Lin said.
Zhang Lin also said that if this imbalance continues, the direct consequence is that the market's anti-fall will definitely increase. "The willingness of merchants to pull up will definitely increase, but the market demand is difficult to have a large amount of heavy volume. Only the sky, the final price is still to land, this is the embarrassment of the steel industry."
Profit differentiation
Most steel companies are still struggling
The most direct impact of such unbalanced supply and demand on steel companies is that many steel companies still have "profits".
According to the reporter's understanding, in the first half of this year, there were 63 profitable enterprises in the 88 steel enterprise groups of the China Iron and Steel Association's financial indicators, with a profit of 15.156 billion yuan, a year-on-year increase of 6.56%.
Among them, there are only 6 enterprises with a profit of more than 500 million yuan, with a profit of 8.098 billion yuan, accounting for 53.43% of the profit; Baosteel realized a profit of 3.829 billion yuan, accounting for 25.26% of the profit. There were 25 loss-making steel enterprises with a loss of 7.677 billion yuan, a year-on-year decrease of 15.7%. Among them, there were 7 enterprises with losses of more than 500 million yuan, and the loss was 5.322 billion yuan, accounting for 69.32% of the losses.
“The profit of the top six steel companies reached 8.1 billion yuan, accounting for 53% of the total profit, while the profit of a steel company in Baosteel was 3.829 billion yuan, accounting for 47% of the profit of these six steel companies. Although the industry seems to be profitable, but the profit differentiation is very serious, many steel companies are still in dire straits." Zhang Lin said.
It is worth mentioning that as of the end of June, domestic large and medium-sized steel enterprises accounted for 587.6 billion yuan in inventory, a year-on-year increase of 3.54%, down 0.43% from the beginning of this year. The capital occupied by finished products increased by 2.95% year-on-year, up 10.45% from the beginning of the year, reflecting that the raw material inventory of enterprises was effectively controlled, and the inventory of finished products was relatively high. In the first half of the year, domestic steel companies' accounts receivable increased by 13.05% year-on-year, accounts payable increased by 6.38%, and capital turnover efficiency was further reduced, which aggravated the situation of corporate capital shortage.
Xu Lejiang also said that in the first half of this year, the benefits of domestic steel enterprises have clearly differentiated, and the funding situation has not improved significantly.
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