The hottest steel industry has relatively single m

2022-09-23
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The new normal of relatively single means of competition in the steel industry is both a challenge and an opportunity

Zhang Changfu, Secretary General of the China Iron and Steel Industry Association, said frankly at the "2015 China steel market outlook" and the "" annual meeting that the current means of competition in China's steel industry is single, limited to price competition

however, the steel industry still has huge development space and market. Therefore, we should be confident that the new normal is both a new challenge and an opportunity for the steel industry

the means of competition is relatively simple

first, from the perspective of steel production and consumption, considering the sharp increase in exports in 2014 and the continuous decline in prices, the situation of market supply exceeding demand and the performance of overcapacity are still very obvious. Second, the investment in fixed assets fell year-on-year, and the investment structure was greatly improved, mainly concentrated in mining, environmental protection, and the deep processing of steel products. The main body of social investment is more rational. Third, the investment in iron mines has been improved, and iron ore has entered the buyer's market. Whether we can control and face it is also a challenge for the steel industry. Fourth, the differentiation of the steel industry is intensifying. Due to the slowing demand for steel and low industrial concentration, the steel index in each month of 2014 has always been lower than 100 points

Zhang Changfu pointed out that the average asset liability ratio of member enterprises is as high as 72%, and the asset profit margin of the whole industry is 70%. In the first 10 months of 2014, compared with the previous year, the crude steel output increased by 0.7% year-on-year, but the sales revenue decreased by 0.3%, the financial expenses increased by 20.6%, and the accounts payable increased by 9.98% year-on-year, close to 10%. This series of business indicators are weakening, showing that the environment for enterprise operation and production is more severe. In this situation, a number of enterprises rely on their own innovation and internal management reform to actively respond to market development and changes, and enterprises have shown many bright spots. At present, industry differentiation is intensifying. Only by changing and understanding the performance advantages of equipment and the key points of setting each button, constantly deepening reform, and actively responding to the development and changes of the market, can we achieve development in the market environment of survival of the fittest

Zhang Changfu pointed out that resolving the huge excess capacity is a long-term and arduous work. In 2013, the contribution rate of the steel industry to the national GDP was 5.6%, the automobile industry was 2%, the market share of the top ten enterprises in the steel industry was 37.5%, and the market share of the top ten enterprises in the automobile industry was 88.4%. The concentration is very different

therefore, in the case of low concentration of the steel industry, it is difficult to effectively implement industry self-discipline, and in the case of very difficult industry, it is difficult to control output. The industry association spontaneously regulates and controls the output, which affects the price, but if it is dispersed, it cannot be affected. It is a mess, so it must be faced and solved. In the environment of lagging brand construction and slowing demand, in order to maintain market share or expand market share, the main means of competition is to reduce prices, resulting in a single means of industry competition, that is, to fight a price war

the internationalization level needs to be improved.

Zhang Changfu pointed out that in addition to the scattered industry and lagging brand construction, the internationalization level of China's steel industry is also relatively low

from January to October 2014, China exported 83.1 million tons of steel, and the annual export is expected to reach 90million tons. China has become a global steel exporter since 2006, but China's steel exports have not yet established an international marketing network with a global standardized industrialization output rate of 90%. China's closed steel transactions are still mainly self marketing, and there is no deep marketing of business management relationship. It is noteworthy that Hebei Iron and steel recently acquired the international brand Degao of Switzerland and established a global marketing network

in addition, the path of China's iron and steel industry to go global is relatively simple. There are still obstacles to internationalization, including mechanism and system obstacles, and the level of openness is still low. Therefore, there are three aspects of overcapacity and structural adjustment focus in the steel industry that need to be paid attention to

first, we should improve the industrial concentration, the relationship between industrial supply and demand, the ability of governance and the effect of regulation. Improving the concentration can stabilize the market and prices

second, we should strengthen brand building, guide enterprises to move towards medium and high-end, and achieve orderly competition. In particular, we should guide enterprises to fight a quality war rather than a price war. Cost reduction cannot be at the expense of quality. Prices should be compared under the same quality. Mainland goods also have advantages and disadvantages. At present, when the quality information of our steel products is not very transparent, the single price competition and unfair competition will produce the effect of reverse elimination, which is not in line with the industrial policy. Therefore, a single price will make the quality lower and lower. The low price is often the quality that does not meet the standard. Guiding enterprises to price without ensuring the quality level has a relatively large negative effect, which should attract the attention and attention of the whole industry

third, we should improve the level of internationalization, which should be the internationalization of resources, markets, talents and capital. Instead of selling steel or ore. To adapt to the policies of the development of the steel industry, enrich the connotation of the steel industry going global, and realize the transformation of China's steel from weight to quality, China's steel is not only a model of scale, but also a quality and competitive type

the new normal is both a challenge and an opportunity

looking forward to 2015, Zhang Changfu pointed out that 2015 will be the end of the "12th Five Year" development plan through strengthening information guidance, as well as the year of comprehensively deepening reform and expanding opening-up. Zhang Changfu pointed out that the steel industry still has huge development space and market. Therefore, we should be confident that the new normal is both a new challenge and an opportunity for the steel industry

first, the total demand for steel products will continue to remain basically stable, and the fluctuation range will not exceed 3%. The downstream manufacturing industry presents a diversified pattern. On this basis, the total amount is basically stable, which is the normal state of the steel industry for a period of time or quite a period of time in the future. The steel industry now needs high-quality steel to promote industrial upgrading

second, to resolve overcapacity, policies have been issued one after another to promote fiscal and tax reform and financial reform, including the revision of the steel industry, in order to create a fair market competition. The new environmental protection law and new environmental protection standards, the vigorous promotion of these reform policies and strict law enforcement, will certainly play a role in curbing the release of the steel industry and eliminating some backward steel production capacity. At the same time, it also forces the adjustment and upgrading of the industry

third, the differentiation of enterprises will be limited, some enterprises will withdraw, and the allocation of market resources will gradually appear

fourth, the profitability of the whole industry may slightly improve on the basis of 2014. The profit of the whole industry in 2014 may be about 30billion yuan, but the profit margin of the steel industry is low. In 2015, benefiting from the dividends of the reform, the efficiency is expected to improve on the basis of 2014. However, since the relationship between supply and demand in the market has not fundamentally changed, it may only have changed and the situation of low efficiency has not been completely changed

fifth, due to the innovation of technology and management mode, coupled with the integration of informatization and industrialization, enterprises will be promoted to move towards the medium and high end, and innovative highlights continue to emerge in the whole industry. As the market elements are increasingly perfect and the information is more transparent and open, both manufacturing enterprises and trade enterprises should pay attention to the changes of market elements. The market price should also be transparent and open. A large amount of transparent and open information such as futures market and price index provide decision-making basis for manufacturing trade service-oriented enterprises

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