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Chinese Steel Weekly-20150727
1. Eight Chinese Steel Enterprises were listed in the Fortune 500 published on July 22nd including Bao Steel, Hebei Iron and Steel Goup, Jiangsu Shagang Group, Bohai Steel Goup, Xinxing Cathay International Group, Shougang Group, Ansteel Group and Wuhan Iron and Steel (Group) Corporation. The number of companies relegated to this list was kept the same as previous year.
MPI’s comments: No matter at any viewpoint in China and the World, the steel industry was always placed at the end of profit distribution chain. In order to change the unfavorable situation, Chinese steel companies on the one hand need to promote capital operation and diversified investment, and on the other hand to make profit by integrated industrial chain instead of steel products in virtue of internal adjustment of industrial structure.
2. The 3rd Press Conference, organized by China Iron and Steel Association (CISA) was held on July 28th. In the first half of 2015, crude steel apparent consumption in Chinese market decreased continuously. Although crude steel output declining, oversupply of steel was very serious as before, which resulted in steel price drop. However the iron ore price experienced a rebound in duration of two months. Main business of steel companies operated at a serious loss. The steel industry will suffer from a cold winter.
MPI’s comments: The Steel Industry has to implement structural adjustment and upgrading if he wants to comply with variation of economic growth, structural optimization as well as conversion of drive power. The management of steel companies should recognize that a painful process is inevitable for restructuring instead of bothering by short-term difficulties and losses.
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