Steel Article

Steel of opportunities and challenges in "Low-profit era"
05 November 2012 20:33

After 10 consecutive years of rapiddevelopment, the operating profit is inevitable in the Chinese steel industryupgrade process and must bear. 21st century, 10 years, is a completerestructuring and development of China's steel industry, iron and steel powersecond leap.

Comprehensive analysis of the currentdomestic and international situation, China is facing unprecedentedopportunities, but also the face of unprecedented challenges, China's developmentis still in an important period of strategic opportunities that can accomplisha great deal.

Looking to the future, both from thedomestic and international macroeconomic trends, point of view or from theself-development of the steel industry, we need a broader perspective to lookat the development of the iron and steel industry.

At present, the global economic environmenthas undergone great changes. The aftermath of the financial crisis of 2008 isnot level, the European debt crisis was underway, the global economy will entera long period of slow growth. China may face the situation of a fairly longperiod of slow growth in exports, which will bring the domestic exportindustries, including China steel anddownstream industries have a significant impact. Of particular importance isthat the financial crisis is changing the structure of global economic growth,the major developed countries have to revive the manufacturing industry and toexpand export policy, China's manufacturing industry is facing the dualpressures of developed countries extrusion and emerging economies catch up, thedomestic corporate restructuring and upgrading to more urgent demands. At thesame time, however, has not yet completed the industrialization andurbanization will continue for the Chinese economy continued growth momentum isstill evident, the international competitiveness of "Made in China",China is still in an important period of strategic opportunities.

In recent years, the "low-profitera" had become a hot word of the iron and steel industry. Iron and steelindustry in peril declining, seems like a foregone conclusion. Since Septemberlast year, the domestic steel industry into the winter. To August this year,the domestic iron and steel enterprises, or operating profit fend forthemselves, or in the gain or loss on the edge of survival.Steel industry afternearly 10 years of rapid development, the supply and demand relationshipreversed, already one foot into the inflection point from the"demand" to "oversupply". On the one hand overcapacityintensifies, even the one hand, demand growth is slowing down. Therefore, China steel prices have no advantage inquality and technology, the next step should be up to improve and increase thetechnology content.

It is understood that, in the good news tostimulate the Anshan markets hot rolled coils prices overall rose in the range of 30-100 yuan / ton between turnoversituation has improved, according to feedback Angang, Benxi Iron and Steelproduction 3.0 * 1250mm hot rolling open flatmainstream offer 3420-3450 yuan /ton, the various varieties and specifications are different rose.

Generally speaking, the transformation ofChina's iron and steel industry is a business model innovation, technologicalinnovation is the iron and steel enterprises to achieve important support forthe restructuring and development conditions. The Baosteel innovation as afoothold in enterprise restructuring and development, adhere to technologicalinnovation as an important means for the implementation of the "theboutique strategic" and "environmental management. We want to speedup the construction of the innovation system, promote the new productdevelopment, engineering technology independent integration "and"live "three innovative system of continuous improvement. Future gatheringresources research new technologies, develop new products and to optimize theprotection mechanism of technological innovation, to create a better atmosphereand the mechanisms of corporate innovation.

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