The dilemma of "increasing production and lowering profits" has made China's steel restructuring and transformation urgent. Li Shijun, chief analyst of China Iron and Steel Association, said at the weekend that the average annual growth rate of China's crude steel output during the 12th Five-Year Plan (2011-2015) will be reduced by about half. China's crude steel output will be controlled below 700 million tons by 2015.
During the 11th Five-Year Plan (2006-2010), China's steel industry developed rapidly, and the average annual growth rate of crude steel production reached about 12%.
Xinhua quoted him as attending a conference on the weekend, saying that the steel industry's "high yield and low profit" situation seems to be difficult to fundamentally reverse in the short term. In the next five years, "there will be a group of steel companies lacking core competitiveness." .
However, Li Shijun stressed that if the "scientific development" goal proposed by the Chinese government can be put in place, China's steel output will be controlled below 700 million tons by 2015; but if the local government's development impulse is still high, steel production may "rush" More than 800 million tons."
Li Shijun emphasized that in the years of development, the steel industry as a whole has been in line with the development of China's macro economy, and has experienced a high profit stage. The “profit-seeking†investment has promoted the expansion of China's steel output. At the same time, in many areas of China. The steel industry is a major local tax collector. The local government is particularly "favored" to make the steel scale expand and expand again. This is a systemic problem.
According to the latest industry analysis report released by the National Development and Reform Commission, in the first quarter of this year, the average daily output of China's crude steel reached 1,927,800 tons, the highest level in the same period. The profit rate of key steel enterprises is still hovering around 3%. The "production impulse" of steel mills "It is difficult to effectively cool down.
In 2010, China's crude steel output reached a record 627 million tons in history, but the average annual sales profit rate of large and medium-sized steel companies was less than 3%, slipping to the lowest point in recent years.
During the 11th Five-Year Plan (2006-2010), China's steel industry developed rapidly, and the average annual growth rate of crude steel production reached about 12%.
Xinhua quoted him as attending a conference on the weekend, saying that the steel industry's "high yield and low profit" situation seems to be difficult to fundamentally reverse in the short term. In the next five years, "there will be a group of steel companies lacking core competitiveness." .
However, Li Shijun stressed that if the "scientific development" goal proposed by the Chinese government can be put in place, China's steel output will be controlled below 700 million tons by 2015; but if the local government's development impulse is still high, steel production may "rush" More than 800 million tons."
Li Shijun emphasized that in the years of development, the steel industry as a whole has been in line with the development of China's macro economy, and has experienced a high profit stage. The “profit-seeking†investment has promoted the expansion of China's steel output. At the same time, in many areas of China. The steel industry is a major local tax collector. The local government is particularly "favored" to make the steel scale expand and expand again. This is a systemic problem.
According to the latest industry analysis report released by the National Development and Reform Commission, in the first quarter of this year, the average daily output of China's crude steel reached 1,927,800 tons, the highest level in the same period. The profit rate of key steel enterprises is still hovering around 3%. The "production impulse" of steel mills "It is difficult to effectively cool down.
In 2010, China's crude steel output reached a record 627 million tons in history, but the average annual sales profit rate of large and medium-sized steel companies was less than 3%, slipping to the lowest point in recent years.
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