Unraveling the mystery of the steel industry

China's steel industry seems to be unable to get rid of such a strange circle: steel production is climbing in the regulation. According to data released yesterday by the China Iron and Steel Association, the production of crude steel in the first half of the year was 350 million tons, up 9.6% year-on-year, with the Nissan production level hitting a record high in June. But its profit data is far from being as good as the output. From January to May, the steel industry realized a profit of 64 billion yuan, down 1.08% year-on-year. The sales profit margin continued to drop from 7.26% in 2007 to 2.42% this year. Among the 39 industrial sectors, steel is one of the two industries with a year-on-year decline in profits. This seems difficult to explain, the profit is so bad, why the output can be hit new highs? According to relevant persons of China Steel Association, the crude steel production in the first half of the year increased by 9.6%, the growth rate of large steel enterprises is only 6%, but small and medium The production growth rate of enterprises is as high as 30%. Reflected in the product structure, long-term production in the first half of the year increased by 14.97%, while plate and strip increased by 9.34%. At the same time, the apparent consumption of medium-thick wide steel strips increased by only 3.7%, while bars and steel bars increased by 11.4% and 15.2% respectively. Long product production is what SMEs are good at. SMEs are keen to produce long products because these low-end products have risen dramatically in the first half of the year, even surpassing the same period. Taking July 1 as an example, the high-line and rebar were 4,885 yuan and 4,937 yuan per ton, up 21.43% and 24.51% respectively, while the plate and hot-rolled coils were 4,928 yuan and 4,908 yuan respectively. , respectively, increased by 13.94% and 13.27% respectively. This trend will continue in the second half of the year. Zhang Changfu, vice president of China Steel Association, said that due to the large-scale construction of affordable housing and the construction of large-scale water conservancy projects in the second half of the year, the demand for construction steel market will be more vigorous, but the overcapacity of sheet and strip and the homogenization competition of products Will be more intense. This is tangled. In recent years, the steel industry has always emphasized the adjustment of product structure and the ratio of board to tube. Therefore, large enterprises have abandoned long-end products of long products and built up high-end products in the traditional sense. However, under the policy-led trend this year, the demand for these low-end products of long products is strong, and large enterprises are difficult to produce due to policy restrictions, so there is an embarrassing situation in which large enterprises compete but small enterprises. The market is always right. These small businesses are flexible and fully oriented to market demand. This can explain why more than half of the existing 800 million tons of steel production capacity has not been fully approved by the state; this can also be used to explain why the company has changed its size since the continuous elimination of backward production capacity. Repeatedly banned. Compared to these "guerrillas", the days of large steel mills are not good. In addition to paying a large amount of money to the mine every year, large steel companies are now facing a severe situation in which funds are stretched. According to the statistics of China Steel Association, the financial expenses of large and medium-sized iron and steel enterprises in the first half of the year increased by 33.79%. Qu Xiuli, deputy secretary-general of China Steel Association, said that iron and steel enterprises are capital-intensive industries. At present, the scale of bank loans for large and medium-sized iron and steel enterprises has exceeded one trillion yuan. Under the current tightening of monetary policy, the project funds of enterprises have been affected. Faced with such a situation, the Ministry of Industry and Information Technology was in a hurry in the latest report on the steel industry yesterday: the steel industry will operate for a long time under high production and low profitability. It is extremely urgent to improve the competitiveness of enterprises and realize the transformation and upgrading of the industry. However, the transformation and upgrading of the steel industry is really a long way to go.

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