The hottest ten-year game in China's steel industr

2022-08-08
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Ten years of China's iron and steel industry: Game international discourse power

ten years of China's iron and steel industry: Game international discourse power

China's construction machinery has achieved integration with ordinary policyholders information

Introduction: 10 years after China's accession to the WTO, the annual output of crude steel in China's iron and steel industry has increased from more than 100 million tons to 600 million tons, accounting for 44.3% of the total global output, ranking first in the world. However, this is just a beautiful report card. This is based on the failure of foreign steel enterprises to enter China after China's entry into the WTO

in the 10 years since China's entry into WTO, the annual output of crude steel in China's iron and steel industry has increased from more than 100 million tons to 600 million tons, accounting for 44.3% of the global total output, ranking first in the world

however, this is only a "beautiful looking" report card

"this is based on the failure of foreign steel enterprises to increase by US $0.050/t (15180000 tons); from South Africa to China, US $3.04/t (15180000 tons); from Iran to China, US $8.5/t (230000 tons); and to a certain extent, it is the result of domestic steel enterprises dancing alone." For this report card, a retired official of the metallurgical system made such an evaluation in an interview with the author

according to the author, although China has entered the WTO for ten years, it is still difficult for foreign-funded steel enterprises to hold shares in China or participate in Chinese steel enterprises in a large amount since 2005. Even the world's leading steel companies such as ArcelorMittal, POSCO and other foreign giants have not made smooth progress in their investment and equity participation in China, not to mention foreign miners who staged a "tug of war" with China on iron ore

earlier, a senior person of a steel enterprise in East China told the author, "China's steel industry is in urgent need of adjustment due to its own development facing many problems, such as overcapacity, backward elimination, unreasonable industrial structure and so on. At this time, the introduction of foreign capital is blind."

on November 7, the Ministry of industry and information technology issued the "12th Five Year Plan" for the development of the iron and steel industry, which proposed that we should make full use of two markets and two resources, coordinate the "Introduction" and "going out", strengthen international operations, and deepen economic and technological cooperation. Further expand the opening-up of the iron and steel industry, and encourage foreign advanced and well-known iron and steel enterprises to participate in and invest in domestic iron and steel enterprises and projects

"Chinese steel enterprises have little opportunity to compete with foreign steel enterprises in the domestic market, which also leads to frequent troubles in the process of 'going global'." The retired official of the metallurgical system said

homogenization competition

in Beijing Baiziwan steel market, there are as many as dozens of steel products of the same variety, and the price gap is small

"steel is hard to sell now. Sometimes there is no business every day. The products are basically the same. If the situation is bad, everyone will have a hard time." Manager Ma, who does profile business, said in an interview with the author, "steel enterprises should produce more distinctive products so as to be competitive."

this homogenization competition not only led to the price reduction of products, but also led to the convergence of profit growth points of various steel enterprises

take automobile plate as an example. In the 1990s, Baosteel Group was the only domestic auto sheet manufacturer. But up to now, there are at least seven domestic steel mills that can produce automobile plates. According to the author's understanding, many domestic steel enterprises with a production capacity of more than 10million tons have plans to apply for automobile panels

some experts said that the result of homogenized vicious competition will not only hurt both sides, but also hinder the pace of technological innovation and product upgrading of enterprises. If the energy and financial resources are used in the current homogeneous competition, it is bound to divert attention and ignore the investment and development of original technologies and products

Luo Tiejun, deputy director of the raw materials department of the Ministry of industry and information technology, said on November 6 that when steel enterprises are upgrading their product structures, not all enterprises invest in projects such as automobile plates and oriented silicon steel, which can avoid the waste of funds and homogeneous competition. Most enterprises should focus on increasing the stability of product quality in a large amount and a wide range. For a small number of enterprises, they should develop sophisticated products

in the past few years, the price of high-end steel in China's iron and steel industry has been lower than that of steel with low added value. The "12th Five Year Plan" for the development of the iron and steel industry clearly states that: Iron and steel enterprises should put product upgrading in the first place, take improving the quality, grade and stability of large-scale steel products as the top priority of product structure adjustment, comprehensively improve the performance and physical quality of steel products, and speed up the upgrading of standards, Effectively reduce production costs

this is interpreted by the outside world as the Ministry of industry and information technology will start to solve the problem of homogenization competition in the steel industry

the above retired officials of the metallurgical system said that if it is moderately open and foreign steel enterprises are allowed to enter, it will also promote domestic steel enterprises to invest more funds in technology research and development and transformation and upgrading

in fact, many domestic industries have achieved rapid development after opening to foreign investment. For example, after years of competition with foreign-funded enterprises, the competitiveness of the household appliance industry has significantly improved

a report from Southwest Securities (600369) pointed out that the "golden decade" of the steel industry has ended, and the development trend of the industry will gradually change from simple scale expansion and output growth to deep processing to improve technology and quality

Recently, the author learned from Shandong Iron and Steel Group (hereinafter referred to as Shandong Iron and Steel Group) that from January to September this year, Shandong Iron and Steel Group produced 18.38 million tons of crude steel. The annual production capacity of Hebei Iron and steel (000709) group has reached 50million tons

according to the author, as of last year, China has built more than 50 tandem cold rolling mills and more than 150 reversible mills, and the total cold rolling capacity has exceeded 100 million tons, while the new cold rolling projects are still increasing, and the new capacity of cold rolled coils has entered the peak of release

the production lines under construction and put into operation make China's steel production capacity continue to rise. United Steel analysts told the author that China's steel production capacity will exceed 700 million tons this year

the growth of output did not gain the right to speak. The profits of Chinese steel enterprises have been severely squeezed by foreign mines

it is understood that the sales profit margin of China's large and medium-sized iron and steel enterprises is only about 3%, which is far lower than the 6% level of national industrial enterprises above designated size

the grand opening of Chongqing International Expo Center (Yuelai exhibition city)! Whether in terms of the scope of the exhibition or the number of exhibitors, this exhibition "China's steel industry has spent an extra $20billion in foreign exchange due to the rise in the price of imported iron ore, which has increased the cost of the steel industry by nearly 130billion yuan." Luo Tiejun said

due to the marginal profit and loss, many steel enterprises had to stop production in the name of maintenance

according to the author's incomplete investigation, 17 domestic large and medium-sized steel enterprises have stopped production for maintenance in October alone

"although China's steel output ranks first in the world, we have always been in a passive position in the game with foreign mines. At the beginning of China's entry into the WTO, the iron ore imported by Chinese steel enterprises was only a few dozen dollars per ton, and now the maximum has reached nearly $200. Although the price is somewhat lower, it is still between $130 and $150." Li Li, a staff member of the raw material procurement department of a steel enterprise, told the author

Li Li said that from the earliest long-term agreement mine pricing to quarterly pricing, to monthly pricing and indexed pricing, Chinese steel enterprises can only passively accept every change in pricing method. The iron ore external dependence of China's steel industry is 65%, which can only be listened to by mines

Zhao Xilin, deputy head of the audit team of the National Audit Office in Baosteel Group, pointed out that the unfavorable situation of iron ore pricing is mainly due to the excessive number of domestic steel enterprises, overcapacity, and the lack of unified coordination and regulation. The scope of investment can further promote the cross regional and cross ownership mergers and acquisitions of iron and steel enterprises, compress and eliminate backward production capacity, and reduce unreasonable ore consumption demand caused by unreasonable production capacity; Seek to establish a price alliance and unify external price negotiations; Pay attention to the development of domestic iron ore resources and reduce the dependence on imports; At the same time, steel enterprises should actively go out and control some iron ore resources

overseas friction continues

whether it is "going out" to invest in resource-based products or exporting steel, the troubles of Chinese steel enterprises have never been interrupted

taking the huge investment of China Steel Group Corporation (hereinafter referred to as Sinosteel) and CITIC Pacific Limited (hereinafter referred to as CITIC Pacific) in the iron ore field in Australia as an example, the projects invested by the two companies have encountered difficulties since this year. Sinosteel's Australian iron ore project has been temporarily suspended due to port problems, while CITIC Pacific's iron ore project is significantly less competitive due to rising costs

the three major mines continue to block the "going out" of Chinese steel enterprises. The failure of Wuhan Iron and Steel Group Company (hereinafter referred to as WISCO) to acquire the African coking coal project stems from Rio Tinto's half way out

Dengqilin, general manager of WISCO, once told the author that WISCO will focus on developing overseas projects that have been invested in the future

"now it is more and more difficult for Chinese steel enterprises to invest overseas. On the one hand, Chinese steel enterprises are not rich in funds; on the other hand, foreign-funded enterprises continue to block them." Some experts expressed such views

in addition, in addition to the obstruction of foreign-funded enterprises, Angang Steel (000898, Guba) Co., Ltd. (hereinafter referred to as Angang) also encountered opposition from U.S. lawmakers to invest and build factories in the United States. Although it was successful in the end, it also suffered twists and turns

despite the difficulties, Angang Steel seems particularly interested in building factories overseas. A source told the author that Angang Steel is planning to establish a joint venture plant with other enterprises in India, and the annual output of the new steel plant is expected to reach 2million to 3million tons

at present, the "going out" of steel products has encountered the greatest and most frequent troubles. In recent years, countries led by the United States have an endless stream of "double anti" cases against Chinese steel

the initial sanction against China's steel industry was on November 5, 2009. The U.S. Department of Commerce preliminarily ruled to impose an anti-dumping duty of up to 99.14% on oil well pipes imported from China. The U.S. Department of Commerce announced that the price of oil well pipes sold by Chinese manufacturers and exporters in the United States was lower than normal, so it decided to impose 36.53% anti-dumping duties on 37 Chinese companies, and some Chinese companies will be imposed as high as 99.14% anti-dumping duties

on December 30, 2009, the U.S. International Trade Commission finally approved the imposition of tariffs of about 10% to 16% on Chinese made oil steel pipes. The vote on that day means that the ruling on the imposition of countervailing duties of 10.36% to 15.78% on Chinese steel pipes announced by the U.S. Department of Commerce on November 24 was passed, and the ruling took effect immediately. The US tax on steel pipes to China is also the biggest sanction on trade with China so far

then on January 21, 2010, the U.S. Department of Commerce decided to launch a double anti-dumping investigation on drill pipes imported from China, and the dumping tax rate claimed by the relevant applicant was as high as 429.53% to 496.93%

the only gratifying thing is that since China's accession to the WTO, the number of patent applications of Chinese steel enterprises (including steel research institutions) has increased year by year. Especially since 2006, patent applications in the steel industry have increased rapidly, with an average annual growth rate of more than 30%

some experts believe that the increase in the number of patents is of great benefit to Chinese steel enterprises in improving their competitiveness and protecting their own interests, and is conducive to cracking foreign technical barriers

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