Can the hottest urbanization help China's iron and

2022-08-08
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Can urbanization help China's steel industry cross the "cold winter"

can urbanization help China's steel industry cross the "cold winter"

China Construction Machinery Information

Guide: since this year, China's iron and steel industry has continued to face the severe situation of low price and high cost, the economic benefits of iron and steel enterprises have further declined, and the loss area of the whole industry has continued to expand. The latest data of China Iron and Steel Association show that the profit loss of 80 key large and medium-sized iron and steel enterprises in June was 5.223 billion yuan, and the industry profit margin was -0.1

since the beginning of this year, China's iron and steel industry has continued to face the grim situation of low price and high cost after quickly determining the required range. The economic benefits of iron and steel enterprises have further declined, and the loss area of the whole industry has continued to expand. The latest data of China iron and Steel Association show that 80 key large and medium-sized iron and steel enterprises lost 5.223 billion yuan in profits in June, with an industry profit margin of -0.18% and a loss area of 38.75%, and 31 enterprises have accumulated losses. Some analysts said that it is a foregone conclusion that the iron and steel industry will suffer a disastrous loss this year. Whether it can enter the "spring" is the key driving force for the direct cooling of urbanization by cold water. (China's economy on December 20)

"the coldest winter", which is used by insiders to describe the current situation of the steel industry

since 2012, many industrial industries have fallen into difficulties, including the steel industry, cement industry, shipbuilding industry and heavy industry, which once took the lead in a few years ago, and the photovoltaic and wind power industry, which is called the "sunrise industry". In particular, the steel industry is indeed in an unprecedented bad period. Many people jokingly say that "the price of steel is about equal to soybean meal"

the central economic work conference put forward the policy of "actively and steadily promoting urbanization and focusing on improving the quality of urbanization". Is it reliable to hope that China's urbanization construction and infrastructure investment in 2013 have injected a "booster" into the steel industry and become the key driving force for China's steel industry to enter the "spring"

the apparent problems faced by China's iron and steel industry mainly come from serious overcapacity and excess inventory. In the future, China's urbanization construction can indeed inject great impetus into China's steel demand and contribute to the moderate recovery of the iron and steel industry. However, China's iron and steel industry is in a difficult position. If we only solve the problem of serious overcapacity in the safety helmet (gb/t 2811-2007) and fail to manage and improve the living environment of China's iron and steel industry, it will take a long time for China's steel enterprises to embark on a more optimistic road

to help the iron and steel industry out of difficulties, local governments should play their due role

dealing with the relationship between the government and the market is the core of the reform determined by the 18th National Congress of the Communist Party of China. The report of the 18th National Congress of the Communist Party of China clearly pointed out: "the core issue of economic system reform is to deal with the relationship between the government and the market. We must respect the market law more and give better play to the role of the government." If the government intervenes too much in the development of the steel industry, it will be difficult to form a unified, open, competitive and orderly steel market system. China's iron and steel production capacity has been seriously surplus, but we still won't forget the scene of the mayor "kissing growth" in front of the national development and Reform Commission after receiving the approval of Zhanjiang iron and steel project. Can the ink scented approval really fulfill the dream of Zhanjiang people

even if the process of "urbanization" is accelerated, the state increases investment in infrastructure construction and investment projects such as subway, high-speed rail and expressway may not bring "warm spring" to the iron and steel industry. The previous "4trillion" investment obviously has no absolute impact on the overall pull of the iron and steel industry. Otherwise, how could the whole industry come to this point

China's iron and steel industry may be able to cross the "cold winter" into the "spring" by resolutely not increasing production capacity and implementing measures such as limiting production and ensuring prices, upgrading industrial structure and scientific and technological innovation. The key here is whether the national functional management departments and local governments can have a unified will to do it and see it in practical actions. In fact, many of the five policies on promoting photovoltaic at the executive meeting of the State Council on the 19th are also effective for the steel industry. The key is "easy to say but difficult to say". For example, "give full play to the role of the market mechanism, reduce government intervention and prohibit local protection". Ensuring the implementation is the key element. Whether the local government can accept and cope with the orderly competitive reshuffle of steel enterprises in the administrative region is still unknown

"only when the tide recedes can we know who is swimming naked in the aluminum alloy cable connection". The embarrassment of overcapacity in the iron and steel industry is not only related to the fact that the domestic and foreign economy as a whole is not optimistic, low-level repeated investment, rapid expansion of enterprise capacity and so on, but also related to the lack of foresight, strategic development thinking and direction of many steel enterprises. Economic prosperity is changing, the market is the "parent", the enterprise is the "child", and it is often the child who is wrong. Similarly, in the face of difficulties, has the enterprise reexamined its core competitiveness according to the international and domestic economic situation? Enterprises need to change with the rapid change of the overall environment in terms of business strategy, promoting innovation, resource interests and decision-making mode. "What pigs can digest is swill, not steel". The self-improvement of steel enterprises does not simply rely on "urbanization" once and for all

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