Tianjin Pengzhan Steel Pipes Co. Ltd.
Tianjin Pengzhan Steel Pipes Co. Ltd.

Tianjin Pengzhan Steel Pipes Co. Ltd.

Tianjin Pengzhan Steel Pipes Co. Ltd.
Tianjin Pengzhan Steel Pipes Co. Ltd.
Tianjin Pengzhan Steel Pipes Co. Ltd.

Tianjin Pengzhan Steel Pipes Co. Ltd.

Tianjin Pengzhan Steel Pipes Co. Ltd.
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Baosteel Group two pioneering task is very arduous

(Summary description)

Baosteel Group two pioneering task is very arduous

(Summary description)

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The development of China's iron and steel industry suffered a substantial increase in raw material prices, overcapacity and other factors of iron and steel, high cost, low efficiency operating characteristics have become increasingly prominent. In the first half of 2011, China's iron and Steel Industry Association statistics member enterprise sales profit margin of only 3.14%, down 0.40 percentage points.
In this context, how to break through the bottleneck of the development of the steel industry to become a topic of widespread concern. Baosteel is the leader of China's iron and steel industry, in 2010 the total profit of 24 billion 200 million yuan, accounting for more than 70 large and medium-sized iron and steel enterprises accounted for 26% of the total profit. Recently, the newspaper industry boom index research group of enterprises to Baosteel Group, iron and steel industry are yielding inefficient iron ore prices remain high and why the merger and reorganization of the difficult and key problems with Baosteel Group Chairman Xu Yue jiang.
The arrival of low profit era is an objective law
How to look at the current situation of the development of the domestic steel industry?
Xu Lejiang: on the current situation of China's iron and steel industry, I think it is in the "low profit era" is right. In recent years, a substantial increase in the price of raw materials, while the rise in steel prices to be lower than the price of raw materials, which led to the decline in the level of profitability of the steel industry. From the point of view of the profit situation of large and medium-sized enterprises, since 2007 the sales profit margin decreased year by year, from 2007 to 2009 were 7.26%, 3.23%, 2.46%. 2011 first half of the year focused on large and medium-sized iron and steel enterprises realized a total profit of 56 billion 400 million yuan, sales revenue profit margin of only 3.14%.
I think, low profit status and the development of China's iron and steel industry is inseparable, in general, the iron and steel industry in the transition period from investment driven to innovation driven development. In going to the innovation driven stage, industry organization structure innovation, technological innovation, business model innovation will gradually replace investment become the main driving influence of China steel industry and enterprise development, improve the competitiveness and income factors. After "fifteen", "11th Five-Year" during the investment driven stage of rapid development, China's iron and steel industry equipment technology, production capacity, variety structure has great improvement and optimization, basically solved from the quantity to meet the needs of the national economy and the downstream industry development. The distinct characteristic of this stage is that the market is pulling the development of enterprises, but not the development of enterprises in competition and innovation. The demand of high speed growth leads to the competition between enterprises is not fierce, and the competition mechanism can not play the role of the survival of the fittest. The development of the industry is mainly by the government and enterprise investment willingness and ability, that is to expand the scale of production through continuous investment activities, increase production capacity, increase the number of products to get in the way of development of iron and steel industry.
Under the current situation, as the leading enterprises of China's iron and steel industry, facing what challenges, how to adapt to the new changes?
Xu Lejiang: at present, our country is a market economy system, the so-called market economy to solve the problem from scratch, and secondly to solve the problem of production capacity is greater than demand. In this process, fierce competition is inevitable. We set up the plant in 1978, when China's steel production of less than 30 million tons, and now is how much? 2011 to break 7 tons. 700 million tons of steel is a concept of what? This is the history of China in the creation of the world. Since the steel production, only 4 countries in the history of mankind has more than 1 tons of steel production, the United States, Japan, the former Soviet Union and china. In 1999, China's steel production reached 1 tons, in 2000, 1.28 tons. 1.28 tons of 22 years of time, and 7 tons of only used in less than 10 years. Iron and steel industry is a basic industry, cement industry is also. If you look at the development of the cement industry, you will find that the steel industry is strikingly similar to the one that is the symbol of a country's industrialization or modernization. In recent years, the rapid development of China's economy, the huge steel production is an inevitable result, but in this case, the steel industry profit era also.
From the United States, Japan, the situation of steel production is a diminishing marginal trend, that is, after the completion of the basic construction of large-scale infrastructure, the basic realization of the industrial process, the steel production will decline. Such as Japan, the highest annual output reached 1.8 tons, and now reduced to 90 million tons. This is an inevitable rule, China's steel production will return in the future.
In the back of this law, we should see that there will be a very fierce competition. There must be someone out of the competition, and there will be a survival. Because our country is developing, the demand for steel is indispensable, even the developed countries in Europe and America go to today also need steel. So I think, this profit era is not a bad thing, is the inevitable law of the development of the industry, people engaged in iron and steel industry have to have this preparation, a fierce competition has begun. And for Baosteel, we will also face greater opportunities and challenges.
What is the reason that caused the weak international competitiveness of Chinese steel enterprises?
Xu Lejiang: relatively loose development environment in promoting the rapid development of China's iron and steel industry at the same time, it also weakened the development of China's iron and steel industry competitive pressure, accumulated a certain problem. Such as industry concentration is still too low, industrial layout is unreasonable, technology research and development and innovation ability is relatively poor, the industry chain is not perfect, etc.. At the same time, it also caused the homogenization of product competition is fierce, iron and steel

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