The myth that steel becomes gold in the hottest st

2022-07-23
  • Detail

The myth of turning steel into gold in the iron and steel industry is broken again, and small and medium-sized enterprises may become victims

the iron and steel industry is in crisis again! It seems that this time I was a little caught off guard, but it seems logical. In the context of the "money shortage" in the financial industry, and the non-performing loans faced by banks have increased year by year before, domestic banks are also reducing their loans to steel enterprises. Nowadays, there are many difficulties in loan financing, which makes the already "shaky" steel industry even worse, and small and medium-sized enterprises may become the biggest "victims"

China is the largest steel market in the world. Driven by industrialization and urbanization in the past decade, the steel market industry has become increasingly prosperous. The steel output has increased from 128.5 million tons in 2000 to 716.54 million tons in 2012, a cumulative increase of 4.58 times, with an average annual growth rate of 15%. However, with the cruel reality of declining prices, blind expansion, large output, soaring iron ore prices and slowing demand, the industry has a turning point

recently, the data released by the national development and Reform Commission showed that in May, steel prices continued to fall. The comprehensive index of steel prices in the domestic market was 103.6 on average, 2.66 points lower than the previous month and 15.16 points lower than the previous year. Contrary to the decline in steel prices, production is on the rise. In the first five months, China's crude steel output reached 325.25 million tons, and the year-on-year increase in plastic has become the core material of most electronic and electrical products, with a composition of 8%

"one ton of soybean dregs is more expensive than one ton of steel, and one ton of steel is less than four liang of pork" is rumored in the industry. Although the rumors are exaggerated, for the current steel industry, there is no doubt that it means the difficult survival plight of steel enterprises

on June 24, Pingxiang pingte iron and Steel Co., Ltd. in Jiangxi Province stopped production. The chairman and general manager of the company were wildly told by the Internet that they were "running away". In the face of the "running away" of the two "missing" bosses, Pingxiang official Circular No. 25 said that pingte iron and steel stopped production due to the fracture of the capital chain. At present, more than 200 enterprise employees have no salary

linliangmin, a metal industry researcher of China Business Information Industry Research Institute interviewed by China national classics, believes that the broken capital chain of pingte iron and steel is just a microcosm of the adverse consequences of serious overcapacity in the iron and steel industry. The sluggish demand inside and outside the industry, coupled with the tightening of loans by many banks to iron and steel enterprises, makes the spread of money shortage even smaller It is even more difficult for private iron and steel enterprises that have neither core technology nor government support

linliangmin told that the pingte iron and steel incident may be the prelude to the outbreak of difficulties in the iron and steel industry, and the industry difficulties will continue to spread

in fact, the shutdown of pingte iron and Steel Co., Ltd. was not accidental. According to media reports, at the end of May this year, a number of small steel mills in Tangshan were forced to shut down their blast furnaces due to their poor operation and failure to pass the environmental protection and environmental impact assessment, resulting in business difficulties, capital rupture and eventual closure

it is worth mentioning that the iron and steel industry crisis occurred as early as 2012. Iron and steel enterprises in Tangshan and other places also closed down and ran away due to the fracture of the capital chain. Now, the most terrible things happen again, which makes people in the steel industry feel uneasy again

small and medium-sized section steel enterprises are facing a "life and death choice", and the life of large domestic steel enterprises is not comfortable. In a time of financial crisis, they have to rely on the "blood transfusion" of the government to survive

in the market economy, small enterprises seem to be unable to withstand the "big waves washing sand" of the market, and there are frequent failures, while large enterprises can always stand in the big waves of the market, and there is always the shadow of local governments behind them

according to relevant statistics, in 2012, among the 35 listed companies with steel as their main business in Shanghai and Shenzhen stock exchanges, the total amount of government financial subsidies to steel enterprises reached 6.145.7 billion yuan, which was twice as much as that in 2011 to meet the packaging requirements of various products on the market

hehangsheng, an iron and steel industry analyst of the business society interviewed by China National classic, said that small enterprises closed down due to capital problems, while large enterprises grew stronger due to government subsidies, which seems to be contrary to the natural law of elimination of the market economy. However, in the current steel market environment of overcapacity and slow demand, the government "transfuses" large enterprises, while turning a blind eye to small enterprises is just a helpless thing

linliangmin told that the impact of money shortage, even after cleaning and separation of waste plastics, has brought liquidity difficulties to many small and medium-sized enterprises. In particular, banks in some regions have directly suspended their loan business, and some banks have even stopped discounting bills, making it even worse for small and medium-sized steel enterprises that are already in financial difficulties. If the money shortage continues for a long time, It is also foreseeable that a large number of private steel enterprises will go bankrupt

Copyright © 2011 JIN SHI