Steel restructuring guidance will be issued to encourage the development of 3 to 5 major steel companies

Wei, Deputy Minister of Industry and Information technology, said in a recent meeting of the China Iron and Steel Industry Association in 2010 that the Ministry of Industrial Affairs and Industry had issued guidance opinions on the merger and reorganization of the steel sector.　　Wei pointed out that the Ministry will accelerate the restructuring of the steel industry, the steel industry to "encourage the development of 3 to 5 major steel companies." February 5, 2010, China Iron and Steel Industry Association board meeting released a group of data: 2009 China's steel industry, the first five seized the proportion of national steel production only 29.1%.　　The top five steel giants Hebei Iron and Steel (000709, shares bar), Baosteel, Wisco, Saddle, Sha Steel and other five major groups of steel production 165 million tons, only accounted for the same period of 29% of the national steel production. Iron and steel industry's top five concentration increased only 0.5%, the first ten strong concentration also only increased by 0.9%, from the State Council "steel industry adjustment and revitalization of the plan" proposed by 2011 to reach 45% goal is still very far. 2009 domestic steel industry profit level of about 10 U.S. dollars/ton, the domestic steel market has exceeded demand.　　Low concentration and overcapacity have become the main obstacles to the rise of steel prices and the improvement of the industry's profit level.　　Globally, 4 steel mills in the United States accounted for 61% of the country's output, 4 of Japan's steel mills accounted for 75% of the country, while China's top 5 steel companies accounted for 2009 of the country's 31%-year production. The Ministry of Industry issued to accelerate the restructuring of the steel sector guidance, the main purpose is to change the current concentration of the industry is low, at the same time lagging behind a large circle of production.　　Change the structure of China's steel industry to enhance the competitiveness of steel enterprises in the international market. CISA: 10% increase in output and more than 30% in a recent meeting of the China Iron and Steel Industry Association's 2010 Board of Directors (enlarged), CISA President Deng pointed out that last year's iron ore demand imports increased the pressure on iron ore prices and freight prices. He said that this year will strengthen the import iron ore industry self-discipline work, improve and strengthen the iron ore negotiation work.　　This is also one of the 8 key tasks of CISA this year. Member enterprise profit fell 33.64% in the country's 4 trillion yuan investment policy, led by the Chinese steel industry in the world's major economies in the lead out of the downturn, production last May, the full recovery. CISA Statistics 68 Large and medium-sized steel enterprises in the continuous loss of 7 months, also in the month of profit. China's crude steel production reached 567.8424 million tonnes last year, up 13.5% from a year earlier, according to CISA.　　68 Large and medium-sized steel enterprises to achieve annual sales revenue of 2,244,140,000,000 yuan, to achieve a profit of 55.388 billion yuan, of which investment income of 13.102 billion yuan. Despite the success of the loss, but due to oversupply, resulting in market prices depressed, steel enterprises in fact in the state of increasing production and reduce.　　CISA said the steel production of its member companies rose by 11.27% in 2009, while sales of products fell 10.14% from a year earlier, achieving a 33.64% per cent decline in profits. Export decline intensifies domestic pressure on domestic steel productionAt the same time, steel exports showed a marked downward trend last year. It is reported that after the import and export offset last year, the equivalent crude steel net exports 2.8671 million tons, compared to 2008 47.6316 million tons reduced by 44.7645 million tons, down 94%.　　This part of the crude steel from exports to the domestic market, further exacerbating the domestic market oversupply pressure. At the same time, steel capacity in other countries and regions is gradually recovering. Japan's Nissan level last December was equivalent to an annual output of 105 million tonnes, up 17.86 million tonnes from 2009. South Korea's average Nissan last December was equivalent to an annual output of 51.43 million tonnes, and "it is expected that South Korean steel production will return to the financial crisis and improve in 2010."　　Wu Chun, the honorary president of CISA, said Japan and South Korea were more likely to expand their steel exports to China in 2010. In addition, as domestic steel production growth was largely dependent on investment-driven and policy support last year, domestic steelmakers must also face the test of sustainability in investment growth this year. CISA said the growth rate of domestic fixed asset investment and the growth of new projects will be lower than 2009.　　In addition, this year the country more emphasis on structural adjustment, resource conservation policy, will further reduce the strength of steel consumption.　　Concerned about the "iron ore negotiations" suggested that the government punish the speculation iron ore enterprises according to the reporter understand, this year by Baosteel to represent the domestic iron and steel industry leading iron ore negotiations, and CISA and Minmetals are back behind the scenes. CISA's data show that last year domestic iron ore growth rate fell sharply year-on-year, imports of iron ore extraordinary growth, increased imports of iron ore and sea freight prices increased pressure.　　According to last year's domestic steel production capacity, the need to increase imports of 95 million tons of ore, but the actual annual import of 627.78 million tons of ore, 41.5% increase than the previous year. In this respect, CISA said that this year will improve and strengthen the iron ore negotiations, will further standardize the iron ore import circulation Market order, and actively promote the implementation of import iron ore agency.　　Strengthen the import of iron ore quality, quantity, price, direction of registration records management, strict industry self-discipline. Deng said that to seriously disrupt the iron ore import circulation Market order, the speculation of imports of iron ore, from which profiteering enterprises, recommended the government to give penalties. At the same time, actively promote enterprises in various ways to establish a stable overseas iron ore supply base, promote the Government to provide support for domestic iron ore enterprises related policies, to support iron and steel enterprises to expand the control of domestic iron ore resources. (Guichenro)