Wang Xiaoqi: Overcapacity of steel is global

Recently, the intensive listing of steel listed companies revealed that Ma Steel had a huge loss of nearly 1.9 billion, Shandong Steel had a loss of 996 million, and Hangzhou Steel had a loss of 107 million.

According to the latest statistics of the Steel Union News, as of August 28, 20 steel listed companies released the results of the 2012 semi-annual report. The report shows that the 17 companies' net profits have all declined sharply, and Anshan Iron and Steel Co., Ltd. is ranked first in the loss-making list with a net profit loss of 2.08 billion yuan. Only 3 companies achieved net profit growth, among which, *ST Guangzhou Steel was able to turn a good asset into Guangri Elevator to turn losses into losses, and Baosteel's performance was boosted due to its sale of related assets and equity in the stainless steel and special steel business units.

Overcapacity and low concentration have been the two major problems that have been criticized by the steel industry in China. With the economic downturn, in 2012, the domestic steel market lost its hope in one round and steel traders and steel mills were trapped in the quagmire of the steel market.

At the “2012 China Coal Char Industrial Chain Supply and Demand Summit Forum” held recently, Vice President of the China Iron and Steel Association Wang Xiaoqi pointed out that the steel production capacity surplus is global. “Not only is China's steel prices low, but global steel prices are low. ".

According to its introduction, currently there are 452 enterprises that have steelmaking capabilities in China's steel industry. He frankly stated that companies that produced more than 1 million tons in the past were super large enterprises. He said, "Ten years ago, when I was working in the Ministry of Metallurgy, there were 20 or more companies with more than 1 million tons in the country, and I didn't think there were nearly 200 now."

Wang Xiaoqi stated that the difficult situation China's steel industry is currently facing is not a short-term one. It is a result of a large number of contradictions that have not been solved in time during the long-term development of the iron and steel industry. "The settlement of these contradictions takes time, and the solution to the problem of excess production capacity in particular is not only time-consuming but also very painful."

“It is not the most difficult period. It is estimated that the fourth quarter or next year will be more difficult than it is now, that is, the amount of steel used will be further reduced.” He pointed out that the steel industry must really achieve structural adjustment and balance supply and demand in the total amount. There must be a group of companies that are not competitive to close their doors and exit the market.

In addition, in his opinion, there is basically no greater stimulus.

Xie Guozhong, a financial economist and a director of Rose Rock Consulting Co., Ltd., said that economic problems cannot be solved by stimulus. Investment through the economy will lead to more serious overcapacity. “We can’t put money away like 2009 and 2010. It is impossible to go."