September steel company efficiency fell most difficult in the fourth quarter

At the 2013 (2nd) China High-Tech Forum on Iron and Steel Technology hosted by the China Metal Society and organized by the Institute of Metallurgical Industry Planning and Design yesterday, Wang Tianyi, executive vice president of the China Metal Society, said that the steel industry is currently facing unprecedented difficulties. And this difficulty will continue to exist for a long time to come. The difficulties faced by the steel industry at this stage are mainly reflected in two aspects: the sharp decline in industry efficiency and the increasingly tense corporate funds.

Wang Tianyi pointed out that on the one hand, the rapid growth of steel production capacity and actual production, high ore prices, the continuous decline in the price of steel sales, resulting in a substantial decline in industry efficiency; the other hand, corporate debt ratios continue to increase, resulting in the reduction of own funds, resulting in Corporate funds are tight, and individual companies even have the risk of breaking the capital chain.

“The difficulties of the industry are the common result of the country’s long-term expansion of economic policies and extensive corporate management.” Wang Tianyi said, “The complexity of the causes and changes in the domestic and international situation determine that difficulties will exist for a long period of time. *The chairman had predicted that it would take 5-10 years."

“The most difficult period may be November and December. After entering the winter, the demand for the north (steel) will decrease.” Qu Xiangxiu, deputy secretary-general of the China Iron and Steel Association, said that the country will maintain the continuity and stability of macroeconomic policies. No large-scale economic stimulus measures will be introduced, but squatter reconstruction, urban railway construction, energy conservation and environmental protection investment, and new urbanization will be stepped up. It is expected that the national steel demand will continue to grow slightly in the fourth quarter of this year.

Qu Xiuli believes that at this stage, the world economy is growing at a sluggish pace, but China is still the top growth in the world’s major economies. It is expected that China’s economic growth will increase by 7.8% in 2013 and maintain steady growth. In the fourth quarter, steel demand will continue to grow. However, due to financial constraints, the increase will not be too great. It should be a small wave of momentum.

Li Xinchuang, deputy secretary-general of the China Iron and Steel Association, said that from the current situation, the country’s crude steel production remains high, steel stocks continue to decline, but steel prices have not improved, and the current ore prices are still high. "For the steel market trend in late September, the most important thing is to look at investment and manufacturing."

According to the statistics of China Iron and Steel Association, the average daily output of crude steel of the national key steel enterprises increased by 0.07% to 1.7042 million tons in the second half of August 2013; the average daily output of crude steel in the second half of August was estimated to be 2.1992 million tons, which was a month-on-month increase. 0.05%. In addition, the country’s steel stocks have declined for 25 consecutive weeks with a cumulative decline of 35.51%. According to statistics, the Tangshan billet index continued to decline in September. From September 2 to September 13, the index fell from 96.5 to 93.6, and is still in a downtrend channel.