Steel Industry Growth And Consolidation In The Ascendant China Construction – Indoor Outdoor

“The market for iron and steel industry growth cycle of understanding, has in fact been biased.” Tangganggufen secretaries to directorate Zhang Jianzhong told Shanghai Securities News said in an interview.
It is understood that since the 20th century, since the 90’s, the market has been sound to “badmouth” the steel industry. However, the fact that development has on the contrary, the industry is in the triumph. Data show that in 2007, China’s steel industry still maintained a high growth state, and steel production and steel consumption in new record high. Crude steel production in China in 2007 reached 490 million tons, with duplicate materials apparent consumption of steel break 500 million tons.
Iron and steel industry can be high-growth period
Zhang Jianzhong that “bad-mouthing” the market for the unbalanced development of world economy, a kind of misunderstanding is to equate market volatility for the development of the industry cycle. The Chinese Academy of Social Sciences Institute of Industrial Economics postdoctoral analysis pointed out that market volatility is probably 3 to 5 years there will be time, China’s steel industry during this period it will be a high-speed development period.
In his view, the steel industry, the process of development and industrialization are closely tied to the whole, China’s industrialization has not yet reached maturity. But he estimated that perhaps 2020 will usher in a turning point. “This is the decision by market demand and supply, and steel boom is entirely the result of market pull.” Zhang Jianzhong said so.
Analysts also pointed out that since 2002, China’s steel industry has been more than 6 consecutive years of double-digit growth, the conditions from the support point of view, the process of industrialization and urbanization, is leading the core of China’s steel consumption power. Factors that support the next few years will not be weakened, so the size of steel consumption was still strong support.
Since the energy consumption of large iron and steel industry, the industry generally believe that the industry can achieve sustainable development lies in the ability to load in the environment under the constraints of achieving energy conservation.
At present, the general trend of energy saving under the large steel companies have come up with a lot of energy to deal with, but a number of small iron and steel enterprises have taken the opportunity while on. An industry that such annual decline in industrial concentration phenomenon is the result of the industrial policies, but also limits to modern equipment, energy-saving technology-based large-scale development of iron and steel enterprises.
Zhang Jianzhong also believe that, why the current small steel blossom everywhere, because they grasp the energy of large steel companies limited production, leading to intense market demand, opportunities, and national policy, is yet no clear rules.
In his view, the iron and steel enterprises, the industry’s regional development, industrial layout, the existence of non-administrative licensing should be balanced, should be focused support and development. However, the current situation is that as the steel industry can contribute a lot of GDP and profits and taxes, many local governments are speeding up iron and steel enterprises, the backbone of this industry as the local economy, which led to a lot of environmental pollution and disorderly competition.
Cheung Kong Graduate School Dean Xiang Bing said, and Mittal, Nippon Steel and other industry-leading multinationals, the Chinese iron and steel enterprises in management, production scale, cost control, profitability and other aspects, there are no small gap. Small and scattered market conditions, reduced the overall steel industry’s global competitiveness.
Appears in Zhang Jianzhong, the next step, China’s steel industry should be listed as the main force, its relaxation of policy, to be “relaxed” so that it can be a golden opportunity to achieve with the current large-scale equipment, modernization, continuous production, in the international competition in a favorable position.
Will mark the climax of the steel industry consolidation
March 17 this year, the National Development and Reform Commission formally agreed with the Wuhan Guangxi, Guangdong and Guangxi Fangchenggang conduct Baosteel Zhanjiang steel base and steel base project preparation work.
CITIC Securities chief analyst Zhou Greek steel industry by the view that pre-approved two projects of great significance to promoting the domestic steel industry, especially the central enterprises and local enterprises in the regional reorganization, the reorganization triggered the wave of the next few years China will become the a major part of the steel industry.
Zhang Jianzhong expected, since the 2015, 2020, China’s steel industry will enter a period of oligopolistic competition, and this is one of the signs the industry matured. He believes that, by that time, there will be three, five have more than 50 million tons production capacity of large enterprises dominate the market structure, the raw materials and products has pricing power.
Analysts pointed out that in 2010 the completion of the reorganization of the top 5 largest steel group will have a total capacity of about 250 million tons, the equivalent annual output of China’s steel sector is expected to nearly 50%, while the current output of the top ten iron and steel manufacturers only 35% of total production. Policy makers, this will effectively improve China’s international competitiveness in this sector and increase the international iron ore suppliers bargaining power.
China’s “Steel Industry Development Policy,” clearly, support and encourage qualified large enterprises to conduct cross-regional joint re-group: By 2010, the number of iron and steel smelting enterprises have a more significant reduction in the top 10 domestic steel companies Group’s steel production accounts for the ratio of output to reach 50%; over 70% in 2020. 2010, 30 million tons to form a two-level, several million tons of large internationally competitive enterprise groups.

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