|Demand for the steel industry slowdown in the overall trend showed a decline
|The market is a magic hand, just two years, China's steel industry from the production and demand showing explosive growth of the golden age, look into the high cost, low-profit preservation crisis era.
China Iron and Steel Association (CISA Vice President and Secretary General Zhang Changfu the reporter summarized the main problems facing the steel industry, said the steel industry was a downward trend in overall demand, oversupply intensified conflicts; fuel prices rise , enterprises are facing tremendous cost pressures; monetary policy tightening, corporate capital costs and product structural contradiction, yielding inefficient steel industry.
And not the same as the 2008 financial crisis, the Chinese steel industry is no longer hope to re-enter the fast-growing market channels, more people believe in 2007 as growth opportunities are gone.
"'Second five' must remain 'Eleventh Five-Year' This growth is clearly unrealistic, steel consumption slowdown is a big trend." Zhang Changfu said.
Loss of large steel enterprises 25
"The statistics of the 77 companies of which 25 losses, loss of volume reached 2.125 billion yuan."
Reporter: Steel companies suffered in 2011 which cost pressures?
Zhang Changfu: iron and steel enterprises operating by 2011 in areas such as macro-market impact, under enormous cost pressure.
First, the raw material prices, led to a substantial increase in the cost of iron and steel enterprises. March 1-10, 2011 the cost of coking coal iron and steel enterprises rose by 13.84%, the average powder ore imports rose by 27.25% purchase cost. As the prices of raw materials, 1-October the cost of iron and steel enterprises steelmaking rose 20.09%.
Second, the key medium-sized steel enterprises operating funds tight, increased business risk.2011 May 1-10 and medium-sized Chinese steel companies have increased rates of assets and liabilities, end of 10 medium-sized steel company's assets totaled 3.8771 trillion yuan, total liabilities of 2.519 trillion yuan, an increase of 2.1%.
Reporter: How efficient steel companies in 2011?
Zhang Changfu: 2011, sales of key large and medium steel companies a marked decline in profit margins.
1-10 months in 2011 and medium-sized steel enterprises focus on total sales revenue 305.2 million yuan, an increase of 24.65%, focusing on medium-sized
Iron and steel enterprises realized profits of 84.167 billion yuan, an increase of 18.05%. In the period from January to October 2011, each month's price index of steel were higher than a year ago, but due to raw material price rises led to sales of steel, the average profit margin of only 2.76%, 2.91% lower than last year.
The return on sales in 39 countries are among the key industries of the last twelve. The average return on sales of 6% -7%. To October, total profit and profit margin has dropped to 1.38 billion, respectively, and 0.47%. Industry sales in October to 0.47% profit margin has, which is to the edge of the industry-wide losses. 77 companies in the statistics of which 25 losses, loss of volume reached 2.125 billion yuan.
Slowdown is the trend
'Not' to developing 'problem, but' how scientific development 'issues. "
Reporter: next year and the next five years China's steel industry development environment has changed?
Zhang Changfu: "1025" period, China's steel industry is facing the question is not "Do you want development", but "how scientific development".
November 24, 2011, the Ministry issued a "second five iron and steel industry development plan", which is the "second five" guiding the development of China's steel enterprises documents. In this "plan" put forward the "five" period steel demand forecast values, but also from enhanced resources and support capabilities, speed up mergers and acquisitions, strengthening the steel industry chain extension and collaboration to further enhance the international level 9, proposed by restructuring, transformation and upgrading of important goals and tasks.
Reporter: Do you think next year or even the next five years, the steel industry will maintain high growth momentum it?
Zhang Changfu: from the "second five" China's steel industry development trend, the trend is slowing down. This we see to understand.
"Eleventh Five-Year" to maintain an annual crude steel consumption rate of four or five thousand million tons, "five" and also to maintain this growth rate is clearly unrealistic. Can not place their hopes in such a growth, so the steel consumption slowdown is a big trend. I mean slowdown, not a lower base.