Steel enterprises expand upstream industry to alleviate cost pressure

At the recent 2011 International Coking Coal Resources and Market Summit Forum, experts at the meeting generally agreed that in 2011, China's steel enterprises were in a difficult situation, energy prices will face upward pressure, supply in the downstream market exceeds demand, and profits in the steel industry continue to suffer. Extrusion, the upstream resources of the layout industry chain are particularly important for steel companies.   Layout upstream energy In recent years, iron ore price is the lifeline that affects the profit and loss of enterprises. In the next few years, the price of coking coal will affect the efficiency of steel enterprises to a greater extent. Hu Jun, deputy chief engineer of Shougang Corporation, believes that the future price trend of coking coal prices will only increase and will not decrease. Therefore, the increase in coking coal prices has steadily increased the efficiency of steel enterprises, and steel companies are making great efforts to develop resources. Otherwise, the pressure on enterprises will be greater in the future. Hu Jun said that Shougang is also preparing for the active development of upstream energy and cooperation with coal companies. Liu Baoshan, director of the Materials Purchasing Department of Anshan Iron and Steel Group, said that Angang has already laid out the layout of upstream energy and has cooperation intentions with domestic coal companies, but the specific matters should not be disclosed. Liu Baoshan said that Angang Group has a foothold in the supply of resources and there is no problem in supply. Coking coal is a scarce resource in China. The shortage of market resources has not been alleviated. The demand for coking coal market is relatively large. As a result, the production of coalification enterprises relies on imported coking coal. As the demand for coking coal in China continues to increase, coking coal Prices are also rising. “In 2011, domestic coking coal imports will remain high due to insufficient domestic coking coal supply. However, due to various factors, there will be no high growth of 37.3% in 2010, which is expected to increase by 10% this year. Above, the international crude oil price breaks through the 100-yuan mark, the continued depreciation of the US dollar, and the Australian resource tax reform will drive the rise in international coking coal prices," said Liu Shengrui, general manager of Shanxi Coking Coal Group Coal Sales Corporation. Steel enterprises face multiple pressures Last year, the profitability of steel industry was lowered. The average annual sales profit rate of large and medium-sized steel enterprises was only 2.91%, far lower than the average profit level of 6% in the national industrial industry. Experts generally believe that the external troubles caused the steel companies to have low profits. The internal cause is that the total amount of China's steel industry is too large, and the contradiction between supply and demand is more prominent. The external cause is that the rising cost of iron ore and coking coal has squeezed the profit margin of the steel industry. At present, whether it is iron ore or coking coal, the price increase in the second quarter is expected to be strong, and there is room for growth in the spot. The cost of raw material purchases required by enterprises has risen significantly. Compared with 2009, domestic iron fines rose by 46.44% year-on-year, imported iron ore rose by 45.21%, metallurgical coke rose by 12.12%, and coking coal rose by 26.44%. Energy experts believe that fuel prices are still operating at high levels, making the benefits of steel companies not significantly improved. Hu Jun believes that the situation facing the steel industry in 2011 is still tense, steel production and consumption can maintain a certain growth trend, but the growth rate is slowing down. In the face of multiple pressures, some small steel companies will face the possibility of bankruptcy. The state severely suppressed real estate and introduced a series of related policies. The increase in the reserve ratio suppressed the upward trend of steel prices, which made the downstream demand market sluggish and the phenomenon of oversupply was prominent. Industry risks continue to accumulate, merchants are tight, and the market is quickly on a weak road. Lu Gang, executive director of Clal Sentinel, said that real estate is the main driver of steel demand, and the tightening policy will affect the source of funds for real estate, resulting in a decline in real estate demand. At the same time, Lu Gang believes that even if the country's 10 million sets of affordable housing are put into construction this year, the positive stimulus for construction steel (0,-4723.00, -100.00%) will be less than expected.

Calcium Hypochlorite

Calcium Hypochlorite,Socium Process Calcium Hypochlorite,Bleaching Powder

Calcium Hypochlorite Co., Ltd. , http://www.nsswimmingpoolchemical.com