Steel industry must speed up transformation and upgrading

“In 2012, the profit of one ton of steel in the iron and steel industry was 2.6 yuan, which was almost equal to the cost of a bottle of mineral water.” According to Zhao Xizi, “In 2013, the days of the steel industry will not be better than where they were in 2012. 'Winter'. As far as the macro situation is concerned, 2013 will be slightly better than 2012, but it is difficult for the steel industry to get better with the macroeconomic situation. This is because the steel industry has its particularity. In 2013, the benefits of the steel industry remained "It will be low-profit," said Zhao Xizi, honorary president of the All-China Chamber of Commerce for SMEs and the former deputy director of the State Metallurgical Bureau.

The global economy is still in a slow recovery phase. The eurozone, which has the greatest impact on imports and exports, is still in recession. The United States and emerging economies are slowly recovering. "It is estimated that the growth of imports and exports in 2013 will be about 8%, and it will not exceed 10%. This has a great impact on the secondary exports of steel products." Zhao Xizi expects.

"China's economic development has entered a period of low to medium-term growth, which is an objective law of economic development. However, the time window from high speed to low to medium speed means that for the steel industry, exports will weaken and will mainly rely on domestic demand, ie investment and consumption. To achieve growth.” Zhao Xizi analyzed that “while consumerism has little effect on the intensity of steel consumption.”

In 2013, there was no apparent improvement in investment promotion. The domestic real estate industry will continue to be regulated. Urbanization can only be promoted steadily. The investment in railways, subways, and highways is basically the same as last year. The shipbuilding industry and major equipment manufacturing industries are still in a depressed state. The demand for steel products will not be large. The promotion. China's economic development will shift from heavy to heavy quality. With the improvement of development quality, the intensity of steel consumption will also gradually weaken. In fact, from 2011, the consumption intensity of steel per billion yuan of GDP (gross domestic product) has been reduced from 1657 tons to 1370 tons, a decrease of 287 tons. With the development of high-strength steel, the reduction trend of steel consumption will become more and more obvious. In view of this, China's steel production will be close to the peak in the next few years, and there can be no significant increase in the number of steel. “Even if GDP grows by more than 8% in 2013, the increase in steel production is estimated to be around 3%.” Zhao Xizi believes that “the steel industry is still operating at a meager profit.”

Zhao Xizi pointed out that in 2013, iron and steel companies will still face the high cost pressure of iron ore. Affected by the monopoly, and the limitations of the small sample index platform, some iron ore traders and foreign major mining companies secretly hype, raising the price of ore, resulting in the production costs of iron and steel enterprises is difficult to control. "They will neither let you hold it nor make you starve to death." Zhao Xizi pointed it out sharply: "Now that we have our own iron ore price index, we must build this platform. Last year, China's iron ore The trading volume of the stone spot trading platform is more than 7 million tons, and the trading volume has gradually increased, but it is still unable to control the Platts Index. It will be a long-term process to upgrade the iron ore price discourse of the iron and steel industry in China."

He further pointed out that the excess capacity of domestic steel will not be digested in the short term, which will inevitably lead to fierce competition and it will be difficult to increase steel prices significantly. At present, the market mechanism is still unable to fully play its role. Some companies have not adjusted production rhythm in time according to market demand and changes in profit and loss, and have had a negative impact on steel prices. "There are a lot of companies that, for the purpose of GDP growth, they have to produce and sell even if they lose money. This is a negative pull for steel prices," said Zhao Xizi.

In addition, in business management, Zhao Xizi believes that at present, many domestic iron and steel enterprises are still stuck in high-growth, high-cost, high-profit, high-intensity production organizations and modes of thinking. The mode of operation and management has not changed, and management benefits have not come out. “Last year, the profit of one-ton steel in Pohang was 367 yuan, and China was only 2.6 yuan. From this we can also see the potential of corporate management,” said Zhao Xizi.

Fully tapping the positive driving role of private steel companies According to the statistics of the Metals Chamber of Commerce, private steel enterprises’ crude steel output from 18.6 million tons in 2001, accounting for more than 10%, and 362 million tons in 2012, accounting for 50 %, 12 times in 12 years. Private enterprises have become increasingly important in the domestic steel industry. They have also had an increasing influence on the development of the steel industry and even the development of the national economy." Zhao Xizi is very emotional about private steel companies. .

It is understood that in 2012, the profit of small and medium-sized private steel companies is about 60 yuan/ton of steel. This is related to the advantages of private metallurgical enterprises in the market reaction mechanism, management costs, inventory turnover, and tax avoidance. "Only competition can make progress. Giving full play to the advantages of private enterprises can play a positive role in the steel industry and stir up the iron and steel industry." Zhao Xizi judges the role of private economy in this way. “For instance, Hebei Iron and Steel Group Tang Gang has lived in the ocean surrounding a private steel company, and it has also achieved excellent results in transformation and development and has become a leading company.”

“Our organization is a chamber of commerce with private metallurgy enterprises as its main members.” Zhao Xizi is very clear about the functions and positioning of the chamber of commerce. “We serve members, serve metallurgical companies and serve the industry. We must do a good job of government. The bridge with enterprises provides reference and policy recommendations for government decision-making, and cooperates with the government in implementing national policy guidelines, promptly reflecting the members' demands and voices, safeguarding the legitimate rights and interests of the members, and doing a good job of self-discipline in the industry."

Zhao Xizi said that the Metallurgical Association will work hard to provide members with comprehensive quality services. The information service will provide comprehensive information on the basic development of the iron and steel industry, including detailed information on production and business indicators and economic efficiency indicators. It will gradually carry out benchmarking services on key indicators. The consulting service will organize experts to carry out production technologies, management and management, development planning, and supporting services. Improve such comprehensive and multi-level consulting services. The Chamber of Commerce will also organize special reports on key, hot and difficult issues in conjunction with the development of the situation to help enterprises improve their management levels and promote transformation and upgrading.

It is understood that the Metallurgical Association was the predecessor of the Metallurgical Chamber of Commerce of the All-China Federation of Industry and Commerce established in June 2006. In December 2012, with the approval of the State Council, the Ministry of Civil Affairs approved (MinZhou [2012] No. 415) to be registered as the All-China Association of Small and Medium Sized Metallurgical Enterprises, an independent corporate legal person, a non-profit social organization, and its business administration department is All-China Federation of Industry and Commerce. The registration management agency is the Ministry of Civil Affairs. The president of the company is Shagang Group's board of directors, president, and party committee member Shen Wenrong. At present, a large number of outstanding private enterprises have joined the chamber of commerce and become the backbone members of the chamber of commerce. Among them, including the world's top 500 companies Shagang, there are Jianlong Group, Jinxi, Zhongtian Iron and Steel and other large companies, as well as the development of very unique Delong Group, Zhongyang Iron and Steel and other enterprises.