The hottest living environment is becoming increas

2022-08-06
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The survival environment is becoming increasingly difficult. The iron and steel industry has entered a period of large-scale restructuring editor's note: Enterprise Restructuring Based on the industrial chain integration model has emerged in China's iron and steel industry. Under the current market environment, China's iron and steel industry has decided to use different sensors. With the deterioration of the enterprise survival environment and the increasing uncertainty of market demand, the merger and acquisition activities of enterprises have reached a climax again

for iron and steel industry, please click the valve port reset button. Too high oil temperature is the most important basic industry and the material basis for the development of other industries. At the same time, the development of iron and steel industry also depends on the development of coal industry, mining industry, power, transportation and other industrial sectors. In recent years, iron ore prices have been rising all the way. Recently, Shanghai Baosteel has accepted the 96.5% price increase of Rio Tinto, one of the world's major iron ore producers, which means that the production costs of domestic steel enterprises have further increased. At the same time, the sharp rise in coke prices and the increase in electricity prices will also increase the pressure on production costs of iron and steel enterprises

insiders believe that although the steel enterprises have temporarily relieved the cost pressure through continuous price increases, once the demand slows down and the new price increase factors drive inflation higher again, the prosperity of the steel industry will be divided. At that time, while the concentration of China's iron and steel industry will be greatly improved, the profits will also be inclined to large-scale steel enterprises with scale advantages. Therefore, in the current market environment, China's iron and steel industry has experienced a climax of M & A activities again under the condition of deteriorating enterprise living environment and increasing uncertainty of market demand

the boom of the industry is coming to an end

hamsley, a subsidiary of Rio Tinto, recently reached a long-term agreement with Baosteel on the price of hamsley ore. Under this agreement price, fine ore increased by about 79.8% and lump ore increased by about 96.5%. The increase in the contract price of Australian mines was higher than that of Brazilian mines, which changed the established pricing mechanism and further highlighted the strong contrast between the bargaining power of iron ore negotiators. In 2008, the living environment of iron and steel enterprises will become increasingly difficult

in the face of soaring prices of raw materials such as iron ore and coke, the iron and steel industry relies on the strong demand of downstream industries to digest costs through product price increases. But in fact, as a typical cyclical industry, with the decline of macroeconomic growth from the peak, the iron and steel industry is bound to end the overall strengthening pattern, and industry differentiation is inevitable. Through the analysis of Shanghai Baosteel, a leading enterprise in the domestic iron and steel industry, although the cost increase per ton of steel is less than the price increase per ton of steel, the enterprise still has profit space, but its growth is declining

insiders pointed out that the boom cycle of the steel industry has definitely entered the downward channel. Although the recession signal has not yet been shown, the prosperity of the industry is coming to an end. From the perspective of enterprise profitability, in the second half of this year, iron and steel enterprises will face the double squeeze of sharp rise in cost rigidity and unsustainable transfer, and the level of gross profit margin is not optimistic

taking Baosteel as an example, the comprehensive increase of iron ore contract price in fiscal year 2008 will reach 83%, corresponding to an increase of 526 yuan per ton of steel cost. In addition, considering the increase of coking coal price and sea freight price, it is estimated that the cost per ton of steel will increase by 766 yuan, but the price increase of Baosteel in the second quarter can basically offset the impact of the rise of raw material prices on costs. From the perspective of the industry, it is expected that the increase in the cost per ton of steel due to the rise in raw material prices will far exceed the level of Baosteel

the uncertainty of market demand increases

the iron and steel industry is at the upstream of the national economic chain, and the investment in fixed assets constitutes the domestic demand of the industry. However, after a sharp rise, the growth rate of China's fixed asset investment may be falling from the top, and the impact on the steel industry will gradually appear

it is estimated that in 2007, the proportion of steel used in construction and machinery industries in the downstream industry of iron and steel was 47% and 41% respectively, accounting for 88% of the total steel. If the downstream demand structure of steel in 2008 is close to that in 2007, the prosperity of the real estate and machinery industries will still affect the prosperity of the steel industry. According to the data, from January to April 2008, China's apparent steel consumption increased by 16.3% year-on-year, down from 19% in 2007

even considering the reconstruction needs after the earthquake, it has little impact on the industry as a whole. It is estimated that the investment required for reconstruction is about 600billion to 1trillion yuan, and the demand for new steel is 20million to 22.2 million tons. In 2007, the apparent consumption of crude steel in China was 430million ~ 440million tons. If the reconstruction takes three years, the annual new demand will only drive the steel consumption by 1.5% ~ 1.7%

at the same time, if steel enterprises continue to raise prices, it will not only continue to promote the rise of PPI, but also squeeze out some downstream demand. On the one hand, sustained inflation will certainly erode the profits of all industries, and the reduction of investment willingness will eventually affect steel consumption. On the other hand, if the steel price exceeds the affordability of downstream enterprises, it will weaken the demand and restrain the release of steel production capacity

in terms of external demand, export volume is an important indicator to measure the external demand of China's iron and steel industry. Due to the spread of the crisis in the financial sector, the economic growth of mature economies has declined seriously, while emerging countries have also experienced inflation to varying degrees, and the growth rate of China's steel products exports has dropped rapidly. Insiders pointed out that although the expansion of the price gap at home and abroad has stimulated the rebound of exports, the downward trend of the annual export volume will not change. Industry insiders predict that some steel varieties with high export growth may cancel the tax rebate in the future, which will also have an adverse impact on exports

first tier large enterprises compete in depth to form the mainstream

in 2007, China's iron and steel industry made some progress in the process of joint restructuring. State owned and private enterprises give full play to their respective advantages and actively explore the modes and methods of enterprise restructuring (see relevant reports for details). With the recent listing of Guangdong iron and Steel Group and the official establishment of Hebei Iron and Steel Group, the integration of the iron and steel industry reached a climax in a short time. This seems to confirm what zhangxiaogang, President of China Iron and Steel Industry Association and general manager of Angang Group, said during the "two sessions" this year: "in the three years from this year, the restructuring of China's iron and steel industry will be the largest in history."

insiders believe that although they are carried out under the premise of national steel industrial structure adjustment, the establishment of the above two iron and steel groups is different in essence and connotation. However, it indicates the progress of industrial structure adjustment, reorganization and integration of iron and steel industry. Under the background of rising international raw material prices and the urgent need for enterprises to improve their competitiveness, the restructuring of Chinese steel enterprises is bound to move from the integration of large and small enterprises to the in-depth competition and cooperation among large and small enterprises

although the national development and Reform Commission launched a clear steel industry policy in 2005, the speed of restructuring and integration among enterprises of a certain scale has not been improved due to the characteristics of steel enterprises' easy spending. In 2006, Tanggang, Xuanhua Steel and Chenggang merged to establish the new Tanggang group, and the 2 impact testing machine industry was no exception. In 2007, Baosteel acquired Xinjiang Bayi Steel, which became the most sensational event for steel enterprises in the past two years

since the beginning of 2008, influential integration and restructuring events have occurred continuously. On March 17, Baosteel and WISCO won the projects of Zhanjiang, Guangdong and Fangchenggang, Guangxi respectively; Just nine days later, Shandong Iron and steel group was established on the basis of the merger of Jigang and Laigang; In June, before the listing of Guangdong iron and Steel Group and Hebei Iron and Steel Group, Fosun Group also purchased 47.5% of the shares of Tianjin Iron and steel group with 3.8 billion yuan through its listed company Fosun international

insiders pointed out that the reason for this round of restructuring climax is very simple, because the external environment has changed dramatically this year. Under the combined effect of the rising prices of energy and raw materials and domestic macro tightening, iron and steel enterprises have been under unprecedented pressure, so they all choose to tie up together and find a way out through the connection of upstream, middle and downstream industrial chains, the expansion of production scale and the adjustment of regional layout space

differentiation of reorganization characteristics

under the general trend of mergers and acquisitions of iron and steel enterprises, the main bearings of background dynamometers between different protagonists are not allowed to refuel. The characteristics of the difference in the reorganization process are also obvious. Taking the two newly listed iron and steel groups as an example, Hebei restructured on the basis of the two old state-owned steel enterprises in order to improve the competitiveness of the province as soon as possible; Baosteel, on the other hand, combines with traditional enterprises in Guangdong as an advanced manufacturer to realize complementary advantages

insiders pointed out that from the perspective of market layout, Hebei steel enterprises restructured from the perspective of overcapacity and market saturation, while Guangdong restructured from the perspective of continuing to increase production to meet local demand. In addition, regardless of market capacity or foreign trade export, Guangdong Province is the South Gate of China. Baosteel's establishment of a new steel plant here is also the strategic foothold for China's steel industry to face southeast Asia, the Middle East and Africa. This also helps Baosteel extend its tentacles to the surrounding and international markets, which is a choice that takes into account its own needs and international development. In addition, it is worth noting that Guangdong iron and Steel Group is a symbiosis linked by assets between Baosteel and Guangdong. It is jointly funded, which is different from the previous merger and acquisition of Bayi Iron and steel in terms of enterprise organizational structure and operation methods

some insiders pointed out that the difference between the two is also reflected in: the integration of Hebei steel enterprises is somewhat catfish effect after outsiders' intervention, and Shougang's entry into Hebei is more or less accompanied by the conjecture of integrating Hebei steel; It is not surprising that Baosteel has secretly competed with WISCO in the southern market in order to maintain its leading position. It is no secret that Zhanjiang and Fangchenggang once competed to build a southern steel base

experts believe that the current situation of China's steel industry is in a period of rationalization and clarity. However, due to the "high fever" of external raw material prices, the integration of the domestic steel industry will also continue. Some people have transferred the expectation of the next step of steel enterprise restructuring and integration from the first and second-line steel mills to the first-line steel mills, because this is not only the requirement of the national policy, but also the requirement of the market environment. In addition, the enterprises that implemented merger and reorganization in the early stage are all excellent enterprises in the market competition. This demonstration effect will also promote the reorganization and integration

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