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Steel industry restructuring roadmap will be taking over the saddle of the scheduled Wu Po

Steel industry restructuring roadmap schedule. Following the reorganization Baosteel Wuhan Iron and Steel, Anshan and Benxi Iron and Steel substantial restructuring will be taking over the stage.
19, vice president of the China Iron and Steel Association in late Jingdong China International Economic and Exchange Center's "economic monthly to talk about," revealed that the State Department recently released 46 documents mainly for the steel industry mergers and acquisitions - "on promoting China Aluzinc Steel Sheet Coil industry mergers and acquisitions disposal guidance zombie companies. " The end of June the official opening of the Wuhan Iron and Steel Baosteel restructuring, it is an important measure to implement this part of the file. The next step will be the restructuring of the steel prices substantive advance the saddle of the iron and steel restructuring.
Baosteel, Wuhan Iron and Steel and Benxi Iron and Steel Angang followed
"Guiding Opinions on Promoting the steel industry mergers and acquisitions disposal of zombie companies" is the steel industry to excess capacity, optimal adjustment of the structure of the top-level design.
According to reports, the "guidance" to set the overall goal is that by 2025, 60% -70% of China's steel production industry will be concentrated in the large group of about 10, including 80 million tons of steel grade Group 3- 4 4,000-ton steel group 6-8, and a number of specialized steel group, such as seamless steel pipe, stainless steel and other specialized groups.
Around this overall objective, the steel industry mergers and acquisitions from now to 2025 will be divided into three steps: The first step is to 2018, capacity will go to the Lord, the clearing of clearing. Meanwhile, mergers and acquisitions to the next demonstration, such as the current mergers and acquisitions Baosteel Wuhan Iron and Steel; second step 2018 Year - 2020, complete mergers and acquisitions policy; third step is 2020 --2025 years promoting large-scale iron and steel industry mergers and acquisitions.
"So, mergers and acquisitions to become the leading iron and steel industry in the future development of the iron and steel enterprises must consider each 'I Who restructuring, reorganization of who I am and I whom optimization, optimization with who I am', rather than as in the past, the two blast furnaces, two converters. "Chi Jingdong said.
Earlier, rumors outside Baosteel, Wuhan Iron and Steel merger, the merger is the next Shougang and Hebei Iron and Steel. Chi Jingdong said that there is no schedule, "No. 46" did not point out to Shougang and Hebei Iron and mergers and acquisitions. The next country to promote the merger and reorganization will be subject Angang and Benxi, study soon to be announced by the end of may.
Public information, Anshan Iron and Steel Group in May 2010 by the Anshan Iron and Steel Group and Panzhihua Iron and Steel joint reorganization, the SASAC supervision of central enterprises. After the reorganization of the Anshan Iron and Steel Group Company has formed a cross-regional, multi-base, international development pattern, is the most steel companies have advantages in resources. There's A-share listed companies and Angang Steel * ST vanadium and titanium.
Benxi Iron and Steel Group is composed of Benxi Iron and Steel (Group) Co., Ltd. and the Northern Taiwan Iron and Steel (Group) Co., Ltd. and other merger and reorganization, has been formed with an annual output of 20 million tons of high quality steel production capacity, annual sales revenue exceeding 100 billion yuan. There's A-share listed companies Bengang Steel Plates.
In fact, as early as August 16, 2005, the Northeast region's two largest steel company - Anshan Iron and Steel Group Corporation and Benxi Iron and Steel (Group) Co., Ltd. established a joint reorganization of the saddle of the Iron and Steel Group and held in Shenyang the opening ceremony. From the public view, this reorganization seems disappeared.
Starting point: go and rational distribution of production capacity
The "three-step" to promote the final large-scale iron and steel industry mergers and acquisitions, the background is the overcapacity.
Chen Derong, general manager of Baosteel Group earlier in an interview, also said Baosteel Wuhan Iron and Steel joint reorganization very important point is that in iron and steel production capacity to the combined effect of how to play.
Chi Jingdong said: "In the process of resolving excess capacity, the realization of the ultimate goal of the upgrade is the turnaround in the steel industry, if only to resolve the excess capacity, but could not rescue the upgrade is unsuccessful.."
Data show that China's medium-sized steel enterprises profit from the 2007 peak of more than 1,600 billion yuan, all the way down to close to zero in 2012, and then fell to 2015 industry loss of more than 600 billion yuan rare condition. And on behalf of the steel industry and the actual investment, also in 2014 and 2015 for two consecutive years of negative growth in investment.
However, this is not just contradiction "quantity" on: Consumer demand for steel after reaching a peak has entered the peak plateau region, while steel production capacity has been formed, and will not automatically cut. In addition, the concentration is too low and unreasonable industrial layout of enterprises, but also to the industry worse.
"A lot of steel prices should not be built in place of the layout. The next step, combined with mergers and acquisitions, also need to further adjust the layout." Said Chi Jingdong, not as in the past, which requires local steel on where to build the steel plant. Now, we need to consider where to produce better, more conditions where the plant. For example, coastal, factors of production along the Yangtze River is better than inland. Again, some mills built in the capital city and other major cities, is very unreasonable layout. In the capital city of Jinan Steel is likely to close in the next year, to be replaced by new steel sunshine.
"Some inland production scale mills may be compressed, but especially the southern coast of the scale of production will increase in the coastal." Chi Jingdong case analysis of the distribution of future steel production capacity.

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