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Hard to shake the reorganization of small steel mills booming trend by e55he swrzsnb





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Hard to shake the reorganization of small steel mills booming trend by
Article Posted: 08/12/2011
Article Views: 50
Articles Written: 2033
Word Count: 589
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Hard to shake the reorganization of small steel mills booming trend


 
Business,Business News,Business Opportunities
China Steel Industry Association released statistics show that in the first half, into the statistics of 71 large and medium core business of steel production enterprises Sell Income of 955.03 billion yuan, down 28.07 percent; profit of 1.725 billion yuan, down 98.32%.



Profits in large and medium steel companies fell, while loss-expanding number of local small and medium steel companies was very prosperous day.



Small steel "survivor" "Small and medium enterprises from the state to enjoy the benefits to stimulate domestic demand more, and can buy the lowest price of iron ore and coke." Steel enterprises for profit "big as a small" phenomenon, China Metallurgy Industrial Planning and Research Institute Vice President and Chief Engineer of the new Lee Chong explained.



Lee told reporters that the new record, the first half of this year, driven in China Economy Most important, the most direct and most effective investment in infrastructure. He said investment in the first half increased by 33.5%, while about 55%? 56% of steel consumption in the construction field, the more important in driving investment. The construction sector in the long wood consumption mainly SMEs in the steel industry is dominated by long-material production, while medium and large enterprises are mainly based board production. In addition, a substantial decline in exports and medium-sized steel enterprises is also sad because the day.



"Low" profit is not a long time



Lee start that "construction is a low level of demand pull", this means profits will not last long.



Most of our infrastructure, or reinforced concrete structures, from the perspective of circular economy, which is very Environmental protection Of. For example, many large cities commonly used in reinforced concrete overpass, will have 30%? 40% of construction waste. And this low level of construction method, to the small and medium sized steel enterprises, "survivor" of the opportunity, particularly in the national 4 trillion of investment-led. Therefore, the state should raise standards of construction steel, lead the domestic steel enterprises to enhance product grade, to avoid low-level low-level competition.



According to reports, in the short-term profit driven, although the repeated orders against the new national policy capacity, but some local "hidden" capacity hard tube. In mid-April to early August of this round of steel price rally, some small number of steel companies operating at full capacity can earn profit on the first number.



Steel re-string the arrow has been withheld



Large scale of China's steel market, steel companies are too scattered, crude steel production enterprises, the average size of less than 100 tons of top five steel enterprises only accounted for less than the national steel output 28.5 %, this pattern affects the competitiveness of the enterprises themselves.



China's current steel production capacity 660 million tons, while demand only 4.7 million tons of surplus 190 million tons, as well as 58 million tons of steel projects under construction. Analysts pointed out that to deal with backward production capacity and disorder, this agent may be only a good way of mergers and reorganization.



Learned that the State intended to introduce the ten major industry mergers and restructuring, merger and reorganization of the steel industry guidance has been drafted. Working on the drafting of the Ministry of Industry, "the steel industry mergers and acquisitions regulations."

I am an expert from China Manufacturers, usually analyzes all kind of industries situation, such as used riding lawn mower , electric cordless lawn mower.

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