The hottest steel industry suffered losses in the

  • Detail

The Ministry of industry and information technology may issue new policies to help mergers and acquisitions within the year. Under the background that the industry's sales profit margin is at the bottom of the industry and the boom has decreased significantly, large-scale mergers and acquisitions of the steel industry are imperative

yesterday (April 16 and the establishment of closed-loop control), the daily economy learned that after the 12th Five Year Plan of the steel industry, the draft of the guiding opinions on promoting the merger and reorganization of steel enterprises (hereinafter referred to as the opinions), the first specific guiding document of the Ministry of industry and information technology for the merger and reorganization of the steel industry, has been completed, and is currently in the countersignature stage of relevant departments and bureaus within the Ministry, which is expected to be officially announced within the year

the above news was revealed by xuwenli, deputy director of the iron and steel Department of the raw materials department of the Ministry of industry and information technology, when attending the "2012 Third China Iron and steel Planning Forum". Xu Wenli said, "the Ministry of industry and information technology will promote the acceleration of the pace of mergers and acquisitions of steel enterprises, encourage social capital to participate in the mergers and acquisitions of state-owned steel enterprises, and focus on supporting outstanding large enterprises to carry out cross regional and cross ownership restructuring."

imbalance between supply and demand, iron and steel fell into industrial losses

behind this time, the Ministry of industry and information technology is preparing to introduce policies to promote the merger and reorganization of the iron and steel industry, it is the whole iron and steel industry that is facing great pressure brought by losses

data shows that due to the double squeeze of high costs and declining demand, the prosperity of the steel industry has declined rapidly since the fourth quarter of last year, and the amount of losses has continued to rise. Since January to February 2012, coking coal and other costs have been high, but downstream demand has continued to be weak and inventories have increased, while the daily output of crude steel in China has rebounded, especially the daily output of crude steel in key iron and steel enterprises has been rising, so the industry has basically changed from "meager profits" to "losses"

according to rough estimates, the loss of the steel industry from January to February this year has reached 2.8 billion yuan. Although it may ease slightly in March, it still cannot change the current situation of the loss of the whole industry

Xu Xiangchun, my director of steel information, believes that in the face of meager profits and even losses in the whole industry, the introduction of policies will speed up the process of mergers and acquisitions in the steel industry in the next few years. Whether the enterprise can play a leading role in merger and reorganization will indicate the final effect of enterprise merger and reorganization

according to Xu Wenli, the opinions will take enterprises that meet the national iron and steel industry policy and the standard conditions for production and operation of the iron and steel industry as the main body of mergers and acquisitions in accordance with the law of market-oriented operation, combined with the elimination of backwardness, technological transformation and optimization of layout, in order to significantly reduce the number of iron and steel enterprises and improve industrial concentration

"daily economy" noted that "opinions on establishing a lifelong investigation system for infringement" will guide local mergers and acquisitions, including the application methods, promotion measures, objectives, principles and implementation procedures of the steel industry related to "mergers and acquisitions" in the use process of multi pressure testing machines. The opinions will also clarify that the state will give specific support policies to mergers and acquisitions that conform to industrial policies. It is reported that at present, the Ministry of industry and information technology is actively promoting regional mergers and acquisitions programs in Hebei, Jiangsu, Shandong, Yunnan, Jiangxi and other regions, and promoting advantageous large enterprises to carry out cross regional mergers and acquisitions

Lu Fuzhen, a senior analyst at Lange steel, believes that the reorganization and merger of Hegang and Baosteel have provided good experience and cases, but how the State supports and regulates this is the key issue. Because the industry has cycles, when raw materials are at a low level, it is still helpful for industrial structure adjustment; If it is in the foam period, it will have a certain negative impact

mergers and acquisitions face many obstacles

it is worth mentioning that mergers and acquisitions in the steel industry also face many obstacles

"it is still difficult to reverse the loss situation by relying on mergers and acquisitions at the government level alone. Many enterprises rely on the government to pull together, and as a result, they still operate independently in actual operation, which is basically of little use to find the space to make profits again." Ni Yin, an analyst of my steel information research center, said

an analyst told in the interview that at present, China is in the period of industrial restructuring and the adjustment of regional economic development model. In terms of regulation, the relevant departments must treat the two separately first, and then plan as a whole, and the effect may be better

during the "12th Five Year Plan", especially during the period of carbon reinforced plastic recycling, the iron and steel industry will enter the industrial peak, so this stage is also considered to be the best period for industrial transformation and adjustment, mergers and acquisitions

"at present, the important problem restricting mergers and acquisitions is' local protectionism '. All regions should ensure tax sources, so it is not so simple to implement." Lu Fuzhen believes that as a commodity with a regional logistics radius, steel fell into industrial losses in the first quarter due to the general environment and is also at the freezing point of the market. In this context, it is not as easy to talk about social capital intervention as expected, because the steel industry has always been open to the outside world, and there is no threshold for social capital intervention. At present, for railway investment, fixed asset investment and affordable housing, There is still a rigid need. Moreover, in terms of regionalization, the demand and crude steel production in the western and central regions are larger than those in the eastern regions, which are worthy of attention

the Research Report of Bozhong investment believes that the endogenous growth potential of the steel industry is very limited. In the situation of overcapacity in the whole industry, mergers and acquisitions are the best option. This news has a certain short-term stimulating effect on steel stocks with merger potential

Copyright © 2011 JIN SHI