It is imperative for the hottest steel industry to

2022-08-22
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Small profits or losses in the steel industry are imperative to promote industry mergers and acquisitions

small profits or losses in the steel industry are imperative to promote industry mergers and acquisitions

China Construction machinery information

Guide: Yao Yongbo, deputy manager of the Trade Department of Hebei Iron and Steel Group International Trade Company, China's largest steel enterprise, said on Friday that the high monopoly of ore suppliers and the new pricing mechanism have brought China's steel industry into an era of small profits or losses, Industry merger and reorganization is imperative. He is at my annual meeting of steel ore

Yao Yongbo, deputy manager of the Trade Department of Hebei Iron and Steel Group International Trade Company, China's largest iron and steel enterprise, said on Friday that ore suppliers are highly monopolized and have a new pricing mechanism. 3 The control system has brought China's steel industry into an era of low profits or losses, and industry mergers and acquisitions are imperative

219 at the annual meeting of "bio oil and derivatives grow fastest, my steel", he said that the threshold of China's steel industry is low, and more small and medium-sized enterprises and private enterprises enter, resulting in excessive dispersion and low concentration. In the iron ore price negotiation, it has been at a disadvantage and lacks the right to speak

"if this situation of known resistance values of R1 and R2 continues, China's steel industry will repeat the mistakes of soybean crushing enterprises. Due to the lack of pricing power, a large number of enterprises will close down or be acquired by foreign capital, which will seriously impact and damage the national industry."

China's steel industry has long been accused of being large but not strong, disorderly competition and low profit margins. Overcapacity has always been a chronic disease plaguing the industry. The latest data from China Iron and Steel Association shows that in the first nine months of this year, the sales profit margin of 77 large and medium-sized steel enterprises included in the statistics was only 2. 84%。

Yao Yongbo suggested that China should develop large iron and steel groups with international competitiveness, encourage the development of three to five large iron and steel groups with an output of more than 50million tons, and develop another six to seven strong steel enterprises with a capacity of 10million tons, so as to increase the capacity concentration of the top ten steel enterprises to more than 60%

the concentration of the top five enterprises in China's steel industry is only 29%, while that of the United States is 67% and that of Japan is 71%. Following the merger and integration in 2008, Hebei Iron and Steel Group Incorporated Shijiazhuang Iron and Steel Co., Ltd. and Hebei Xuangong into the group's territory this year

mergers and acquisitions are imperative

in his view, mergers in the iron and steel industry should pay attention to guidance, use market means to promote mergers in the iron and steel industry and prevent "matchmaking"

Yao Yongbo stressed the need to coordinate the interests of local governments, because the GDP (gross domestic product) and tax revenue of local governments will be greatly affected after the merger and acquisition, and some steel enterprises have already invested a lot, and local governments are unwilling to hand over this part of the project to other stakeholders. He suggested establishing a carbon trading market in China to compensate local governments for fiscal and tax losses with carbon emission reduction profits, and also reduce local governments' resistance to mergers

he also suggested that the number of enterprises with import mineral qualifications should be further reduced, so as to avoid excessive speculation and improve the voice of negotiation, paving the way for the merger and reorganization of the steel industry

in addition, yaoyongbo said that mines invested overseas by Chinese enterprises belong to the category of mergers. At present, the mines invested by Chinese enterprises and individuals overseas are too scattered to form a scale, and the investment is up to speed, and the effect is slow. This piecemeal investment method can not effectively break the monopoly situation of ore giants

he believes that it should be led by domestic enterprises with overseas investment experience to merge mining projects that have invested overseas, and plan and find the next investment goal. At the same time, the Chinese government has given policy support to venture capital, bank credit and other aspects to encourage Chinese enterprises to go global

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