The industry's profit level has been lost to the bank's one-year interest rate for four consecutive years. Since the beginning of this year, steel (4871, -6.00, -0.12%) traders and sellers have fled the industry and have become a "one sight" for the steel industry. Behind the industry chain is caused by the continuous decline in industry profits. Automobile purchase restriction policies, iron ore price fluctuations, and summer power shortages have led to frequent power cuts. Various factors have caused the steel industry's profit margin to be lower than the one-year deposit rate. In the second half of the year, the steel industry is facing more severe challenges. The middleman's escape from the sales and storage manager of the Jigang Group has been engaged in steel trade for more than a decade. More than a decade ago, he resigned from a large steel mill and began to engage in steel trade. The storage manager once thought that he would be engaged in steel trade for the rest of his life. But this idea has changed this year. “I have decided to change career now and are looking for new projects.†The storage manager told the China Business Journal that “the industry is increasingly risky and profits are getting lower and lowerâ€. The store manager revealed that several friends around the steel trade are looking for projects and waiting for opportunities to transform. This phenomenon does not only exist in Jinan Iron and Steel, but the whole industry has this trend. Baosteel, the largest steel company in China, revealed to insiders of its sales department that “there are many sellers who have not done it now.†The reason is that “the capital is too large and the industry profits are too low.†“Many traders. Friends, some people go to school, some people go to play golf all day." The above-mentioned people told reporters. Treasure Island analyst Zhang Yongkai told reporters that “in Beijing, there have been such trends in the past two years, and traders have left the steel industry. From 2010 to now, due to the violent fluctuations in steel prices, traders have generated a large number of The inventory, which makes them miserable." How many traders left the industry, the above said that it is difficult to make an estimate, "only the trend is obvious." The storage manager told reporters that it is understood that the current general steel About 15% of the steel is sold directly, and the rest of the steel is sold through distributors, but the lower profit is the main reason for traders leaving the industry. He calculated an account for the reporter. “When we sell steel, we have at least a few million yuan worth of steel in our hands.†The store manager said, “No matter the price, as long as the steel mills are out of stock, we have to stock up.†The reason for this choice, Because, "we have signed a one-year contract with the steel mill. In order to maintain a good relationship with the steel mill, no matter the price rises and falls, it must be purchased." Now, due to the tightening of bank money, "some steel mills cash flow There was a problem, there was no money to buy iron ore, and we were asked to advance the funds, so the risk was too great.†What makes the seller “sad†is that steel prices continue to fall and iron ore prices have been rising. The profit of the entire steel industry is less than 3%. The total profit of the national steel industry for one year is less than the profit of an iron ore supplier. According to the statistics of China Iron and Steel Association, in the first five months of this year, the total profit of 80 large and medium-sized steel enterprises under the China Steel Association was 42.8 billion yuan, and the profit margin of product sales was only 2.91%, which was 0.67% lower than the same period of last year. It fell 2% in the same period last year. Total profit and sales profit margin both fell year on year. Not yet at present, the current one-year bank deposit rate of 3.5% is far lower than the average profit rate of 6.2% of the national industrial enterprises. The steel industry is still in a high-yield, low-profit situation. This is the fourth consecutive profitability of the Chinese steel industry. Years lost to the bank's one-year interest rate. "Steel mills eat meat, sellers can drink soup, and now steel mills can't even drink soup, the sellers are definitely more difficult." The above-mentioned person told reporters. The price of the deformed steel factory is not good enough to be related to this year's auto market. Since the introduction of the automobile purchase restriction policy in major domestic cities, "the price of automotive steel sheets has fallen very badly." Baosteel told reporters. For large steel mills, changes in market demand are exacerbating the environment that affects business operations. "We are paying close attention to changes in the automotive industry." Baosteel told reporters. It is understood that Baosteel, Shougang, Anshan Iron and Steel and other large steel companies produce very few production lines for construction steel, and most of the production lines are used to produce automotive sheets. However, the restrictions on purchases in car sales have increased the risk of the steel market. On the one hand, the price of iron ore as a raw material has a rising trend, while on the other hand, the market demand for iron ore as a raw material product is declining. Enterprises have to face the situation of rising costs and sluggish demand. Even more frustrating is that the price of plates that have been regarded as high in technology has been lower than the price of steel for construction. General sheet metal is the main product of large steel mills, and it is also advocated by the National Development and Reform Commission. The production technology of long steel for construction is low, and the National Development and Reform Commission has always restricted its production capacity. "The current situation is that the cost of sheet metal is high, but the price is equal to the price of steel for construction, and some even lower than the price of steel for construction." Analyst Zhang Yongkai told reporters. It is understood that China's Baosteel and other large steel companies in July cut the ex-factory price of sheet metal nearly 500 yuan / ton. "Since 2008, the country has to adjust its industrial structure. For steel companies, the state is promoting the expansion of production capacity of high-tech products such as sheet metal. The policy has prompted big steel mills to make sheets, and construction steel, large steel mills. Basically, Baosteel told reporters that “the production capacity of construction steel is tight, and the production capacity of the sheet is sufficient, which has caused this abnormal state.†“This is unique to China.†One analyst even pointed out. The capacity adjustment policy has also made people in the China Iron and Steel Association feel dissatisfied. The China Iron and Steel Association executives said that "large steel companies can not only eat fish and bear's paw, but also eat radish cabbage." The industry is about to bottom out. In contrast to steel mills and distributors, iron ore traders have a very good life. . “Unlike steel sellers, the identity and trading of iron ore traders is not transparent and there is a chance to get higher profits.†Zhang Yongkai, an analyst at Treasure Island, pointed out. A domestic heavy industry enterprise procurement department told reporters, "We have not purchased iron ore invoices from traders, and iron ore is in short supply." At present, there is a slight shortage of domestic iron ore resources, so the possibility of iron ore prices falling back Very small. It is understood that this year iron ore prices have been in a high level of operation, the downstream steel mills are difficult to accept, so the two sides are in a state of stalemate. Sun Ming, an analyst at Lange Steel, believes that the operating pressure of the iron ore market comes from the “priceâ€. At present, the overall price of the iron ore market remains at a historically high level, which has put pressure on steel companies, and steel companies are currently In addition to the unfavorable situation of slow capital turnover and slowing demand for steel, the willingness of demanders to continue to suppress iron ore prices is obvious. Baosteel people are not optimistic about the future prospects. "Steel prices definitely have a downside, and may not fall too much. From the perspective of the cost of steel mills, the space that can be reduced is very small." However, the recent iron ore The price of stone prices rose again. The external disk 63.5%/63% of Indian powder mines rose slightly to 182 US dollars / ton, and the domestic Tangshan mine in Hebei also continued to rise 20 yuan to 1,420 yuan / ton. Deloitte China Energy and China industry leader Yang Wenzhong has just returned from Australia to Australia, the main supplier of iron ore. “Now, iron ore prices will rise, because all resource products are rising.†Yang Wenzhong also said. Ma Zhongpu, chief analyst of China Business Network, believes that the world economic situation in the second half of 2011 is severe and complicated. This economic situation has not only led to weak demand for bulk commodities, but also affected the price movements of bulk commodities.
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