2016 steel market is full of unknown year, good and bad two factors will continue to be intertwined

[the 2016 steel market is full of unknowns, and the two factors of good and bad will continue to be intertwined
“ at this stage, steel prices are serious losses, to capacity difficult, not to capacity is more difficult. &rdquo said the whole Union; executive vice president of the chamber of Commerce Zhang Weixiang metallurgy held in the 10 full metallurgical chamber of commerce site in 2016 symposium, 2015 China’s steel consumption and production both from the top of the arc peak area began to decline, the overall industry losses into the winter period, the private steel enterprises tons of steel of average rate of profit from 100 yuan to 2010 and at minus 20 yuan, which means that for steel enterprises, each selling a loss of 20 yuan per ton.
Data show that the metallurgical chamber of Commerce statistics of 130 private steel enterprises sales revenue 1 trillion and 270 billion yuan, profits -43 billion yuan, from surplus to deficit, of which key enterprises lost 1 billion 600 million yuan. From the loss, in 2015 122 private steel enterprises in the loss of 58, the loss amounted to 47%, nearly half of the loss, an increase of 28%, the total loss is from 3 billion yuan in 2013, increased to 7 billion 800 million yuan in 2014, and then to the current 15 billion 900 million yuan, the loss rate increases up to 103.8%.
In this regard, Chinese iron and Steel Industry Association, the party secretary and the Secretary General Liu Zhenjiang said recently that the iron and Steel Association of iron and steel enterprises the main business has been 12 consecutive months of losses.
“ many enterprises rely on less depreciation. Members of the iron and steel enterprises, the main depreciation rate declined from an average of 9.31% in 2004 to 4.78% in 2015, if the depreciation rate remained unchanged, in fact from the beginning of 2008 has entered the sales profit rate of zero time. “&rdquo,” Liu Zhenjiang said bluntly. “The current sales margin has fallen to -2.23%.
The average profit per ton of private iron and steel enterprises in recent years, the chamber of Commerce statistics show that in 2010 the profit per ton up to 100 yuan, 56 yuan in 2012, 2013, 64 yuan, 68 yuan in 2014, while in 2015 profit per ton to 20 yuan per ton loss.
The loss margin has expanded and corporate profits have declined further. Data show that private enterprises in a profit of 1 billion yuan of above 2, a decrease of 3 compared to 2014, shagang group profit 1 billion 897 million yuan, Wuan group profit of 1 billion 636 million yuan; 500 million yuan profit for the 5 companies, compared with the previous year to reduce 6 yuan; profit of 300 million companies to reduce 5 yuan, profit of 100 million companies to reduce 13.
Large state-owned steel prices are more serious losses. The metallurgical chamber of the original team leader Liu Yongchang said that the statistics of the 18 large amount of loss of state-owned enterprises, annual output of 2015 tons of steel 1.6 tons, 74 billion 290 million tons of iron and steel industry losses, the average loss of 462 yuan. The loss of over 1000 yuan per ton of steel enterprises reached 4, the highest loss of 1431 yuan per ton.
Liu Yongchang pointed out that the enterprise asset liability ratio is getting higher and higher, the average debt ratio of 83%, of which the highest asset liability ratio as high as 96.5%. The greater the capacity, the more losses, the heavier the debt, and some have been forced to become “ zombie enterprise ”.
Zhao Xizi, the former honorary president of the all – China Metallurgical Association, also pointed out that the negative cash flow prevailing in steel enterprises should be paid great attention to.
It is worth mentioning that the loss of steel prices is still overcapacity. Zhao Xizi suggested that in order to defuse the capacity, we should stop the transfusion of “ zombie enterprise &rdquo. At the same time, the inland areas, coastal and quasi mills compared to the coastal areas along the Yangtze River has no advantage, “ zombie companies ” compared to the coastal area will be increased year by year, also no longer is focused on mergers and acquisitions.
2016 steel market is full of unknown year, good and bad two factors will continue to be intertwined.

Leave a Reply

Your email address will not be published. Required fields are marked *