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Fierce competition in steel industry production capacity of the port mode control the pain experienced

    All along, the steel industry was the first camp, Baosteel Group, Wuhan Iron and Steel Group, Anshan Iron and Steel Group is ranked, although the rest of the heart into the business, but due to the strength, history and other factors is difficult to break the current pattern.

    Clearly this is a steel industry strength and endurance competitions Competition: Who is the context of decline in gross margin in the industry, able to do large-scale, and with sufficient financial support to the industry, increase in gross margin this stage, the steel companies is the final winner.

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    However, years of iron ore, iron and steel industry continues a long association changed the bankruptcy system the competitive landscape of domestic steel companies. Other steel prices get reduced or even just catch up with the perfect opportunity to Baosteel leading position. After the removal of the shackles of iron ore available to all steel companies a relatively level playing field space, the final winner is to be the first to scale iron chain a monopoly supplier of iron ore a strong will, "a long association mining" reform of the system linked to its price and the spot market, the original "long association mining" and the narrowing price gap between the spot market.

    The so-called "long association mining" refers to iron ore suppliers, steel companies and the long-term iron ore supply agreement signed by the country's largest steel enterprise market share on behalf of their iron ore suppliers and steel companies signed a one-year. In recent years the price below a long association mining spot market prices, many companies find ways to get more "long association mining" share. Baosteel Group, the largest "long association mining," share and far below the cost of iron ore spot market through the purchase of other iron ore companies in the highly competitive steel industry, which become a powerful re-weight the other steel companies.

    You can scale new capacity, mergers and acquisitions and other patterns, but due to the current overcapacity in the domestic iron and steel, the state strictly controls the production capacity to expand production capacity and easy.

    Interference by many factors merger, which the local government of national interests lie in the desired expansion of the biggest obstacles in front of steel prices.
    Port mode control production experience.

    The largest iron and steel base in the port of Zhanjiang Port project, respectively, and Wuhan Iron and Steel Fangchenggang project, the design capacity is 2000 tons.

    In fact, these two projects were not awarded the State Development and Reform Commission approval of project construction, the industry commonly known as "Zhunsheng Zheng."

    The State Council approved the new capacity for considerable caution, Development and Reform Commission to develop new capacity in the steel industry, iron rule is: the new capacity must be "the elimination of backward production capacity," can only be granted under the circumstances.

    Development and Reform Commission in accordance with the requirements of the present, out of 400 cubic meters of blast furnace iron and steel enterprises are included in the list, 20% of total capacity of the whole industry has basically been on the list.

    These products can be scattered throughout the country, or because they have mineral resources, or from close to the needs are, you can have some living space, many local governments are regarded as an important industry.

    Development and Reform Commission adopted the initial treatment of backward production capacity, tough, early development of the local government directly ordered out of goal, out of the end of inspection results.

    However, in practice for some time, the effect is not good, say out of every year the results significantly, but still a large number of backward production capacity exists.

    Helpless, Development and Reform Commission acquiesced to an alternative: Let the leading enterprises to come forward to create a new art at the local ways of production capacity, eliminate backward production capacity of the local.

    Items appear in this mode, including Baosteel and Wuhan Iron and Steel Project of Zhanjiang Port Fangchenggang projects, but projects as Baosteel Zhanjiang Port and Guangzhou municipal government of Guangzhou Iron and Steel Group to re-price, has not yet been reached.

    Local Government is very clear that the calculations leading iron and steel enterprises: the acquisition of small local iron and steel enterprises is not fancy the quality of its assets, it is important to eliminate the part of the production capacity to meet the new capacity must be in the "elimination of backward production capacity," the NDRC requirements, but also Zhunsheng Zheng core and access the most difficult conditions.

   Since the new capacity of the "seven inches," lies in the hands of local government, local governments certainly hope that the leading companies to give a higher consideration.

    However, although the leading enterprises such as Baosteel Group, the local government know the importance of the whole thing, but because of its own that local steel companies can not profit model is destined to survive the fierce market competition, the high price is not acceptable.

    This game result is not out of backward production capacity, new capacity in the progress of severely affected.

    Baosteel Zhanjiang Port Project, for example, in March 2008 received the State Council, the National Development and Reform Commission agreed to carry out preparatory work in Zhanjiang steel project's approval, nearly 3 years past, Zhunsheng Zheng has not yet received. Baosteel Group, which makes billions of dollars invested in this project has become a big slow, cautious.

    Baosteel is the first port of iron and steel enterprises practice, the biggest advantage of this type is to reduce transportation costs, the process accelerated.

    Port of steel enterprises choose to have resources of Shenzhen and Hong Kong region, from Brazil, Europe, the main producing areas by sea transportation of iron ore, steel prices more than in the blast near the port construction, will direct smelting of iron ore imports from molten iron.

    Baosteel Zhanjiang Port of Zhanjiang City is located on the Chinese and the southern tip of mainland China, southwest of Guangdong Province, located in the Leizhou Peninsula, in Guangdong, Guangxi and Hainan provinces Interchange. Zhanjiang has a large harbor, with "large, excellent, deep," is known, Zhanjiang, Guangdong, Hong Kong is the southwest region and the sea west of the most important gateway to the Mainland of China iron ore imports from Australia, the nearest port.

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Zhejiang Pujiang Shenli Chain Co.,Ltd.Professionally manufacture swing chain,iron chain.