Lejiang: Weak manufacturing demand three quarter will be a difficult period for steel companies

At the 2010 Global Green Economic summit in the morning of yesterday (June 8), Baosteel Group chairman Lejiang said steel demand for auto and home appliance manufacturers was "weak" and that many steelmakers were expected to compress production in the third quarter of this year, which would be a "difficult time" for the industry,　　China's small steel mills or iron ore contracts will appear to default phenomenon.　　Demand declines affect steel situation in the second half of the year Lejiang said the property market regulation and car sales decline, will significantly affect the steel industry.　　May, the sale of commercial housing in the strict policy under the control of a sharp retreat, the 18 key cities sales year-on-year average drop of 45.5%, half of the city fell more than 50%. Car sales growth is also showing signs of slowing. China Automotive Technology Research Center released May sales and marketing data show that China's auto enterprises and dealers inventory of 1.1247 million vehicles.　　Analysts say this is due to overly optimistic forecasts of the sales situation this year.　　Some analysts pointed out that if the car assembly plant orders to reduce the second half of this year will be bound to reduce the purchase of auto parts, automotive industry chain of the upper reaches of the steel demand will be greatly reduced.　　Lejiang that the three-quarter steel companies will be more difficult days, but because some mills choose to cut production, the four-quarter iron ore prices will certainly fall, which will reduce the cost of steel enterprises pressure. Lejiang said that China's steel industry relies on the rapid growth of China's economy and has made rapid progress. Steel production increased to 570 million tonnes, the proportion of world steel from last year's 15.2%, raised to 46.2% last year, to achieve the dream of the big steel. However, the development of China's iron and steel industry is mainly resource-intensive, labor-intensive development, extensive development model, so that its concentration is low, backward phase-out capacity progress slowly, steel industry, low value-added, regional layout unreasonable, increased transport costs, steel production and structure there are contradictions. "For the industry, the requirements of the industry regional layout reasonable and organizational structure optimization, reduce resource waste and depletion, reduce social logistics costs and energy load, the layout of steel industry if the logistics cost of the whole society is high, it is not economic, unsustainable."　　"Lejiang said. Iron ore price 4 quarter or drop Lejiang that the next decade, the resource environment and other external constraints will make the Chinese steel industry face enormous pressure, China's economic growth pattern will be a fundamental change, the development of Low-carbon economy has become China and the world to the new sustainable development direction of the important impetus. "From the current environment of China's steel industry, facing the main tasks, to achieve the green development of China's steel industry, is the trend of the general situation, environmental management is the future of steel industry in the future development of the inevitable choice." Lejiang said that technological innovation is the core of supporting environmental management, is to form a significant difference in the competitiveness of the guarantee, in the product to the series of energy-saving environmental protection products, development and enhance the effectiveness of materials have a breakthrough. Focus on technology to develop environmental protection and energy saving technology package of steel industrySolution.　　The development of low carbon steelmaking technology and the process of short process steelmaking technology accelerates the selection and determination of the best feasible technology in the steel industry, and strengthens the cooperation at home and abroad. "At the same time, larger steelmakers will comply with iron ore contracts, and quarterly iron ore prices may rise in the three quarter, but prices may fall in the four quarter."　　Lejiang said that in the next decade, China's steel companies will face the resource environment and other external constraints of great pressure. The national Manufacturing Purchasing Managers Index (PMI) showed that May 2010 PMI was 53.9%, below last month's 1.8%.　　Analysts say the index shows overall growth in the manufacturing economy, but slowing growth is expected to slow in the second half of the year.　　Related news Benxi iron and Steel entered the substantive reorganization of every journalist Liu Dan from Beijing with the integration of the North steel of Benxi Iron, is advancing the "Angang reorganization of Benxi" process or face a new change. Yesterday, Benxi Iron and Steel Group Corporation (hereinafter referred to as Benxi) and North Taiwan Iron and Steel (Group) Co., Ltd. (hereinafter referred to as North Steel) announced into the substantive merger and reorganization stage, and listed the "Benxi Metal Group Co., Ltd.". After integration, the group's capacity will reach 20 million tons, annual operating income of over hundred billion.　　Yesterday, Benxi Iron and Steel Group's steel Plate (000761,SZ) closed at 4.96 yuan, a small rise of 4%.　　The reorganization of the General Assembly announced the leadership of the Northern Steel Group: Zhangxiaofang (Benxi Iron and Steel vice Chairman, General Manager) as chairman of the North, general manager, Yang Wei (Vice general manager of Benxi Iron and Steel) as deputy general manager of North, Yang Wanhua, removed from the chairman of the North Steel, general manager, party Committee Public data show that the production capacity of Benxi and North Steel is about 10 million tons, two factories are only 7 kilometers away, and they all have rich iron ore resources in the saddle veins.　　The difference is that the Benxi steel products to high-grade plate, while the main products for the north of the Wire, bar and plate rolls. CISA's data showed that in 2009 Benxi Steel group lost 1.96 billion yuan, down 959.31%.　　North Steel achieved a net profit of 759 million yuan last year.　　According to the government planning, the reorganization of the new enterprises will further optimize product structure and enterprise organizational structure, unified research and development strategy and development planning, unified arrangements for major investment projects, unified procurement, sales and product development, to achieve resource sharing, complementary advantages. Liaoning Provincial development and Reform Commission related officials said that after the merger, North Steel will be a new two 2850 cubic meters of blast furnace, and demolition of all 450 cubic meters below the blast furnace.　　The project has a total investment of 2.4 billion yuan, construction period of 2 years. Jialiang, chief analyst of my Steel network, said that the first shot by Benxi may become delicate and complicated, but the government's push for "both are still going to be a piece". In addition, a source said that the North Steel high level has revealed that after the restructuring of Benxi Steel, Liaoning Province and the Benxi government planning, will be included in the Angang group after August this year. The final capacity of Angang will reach 560 tons.