The hottest private enterprises have stopped produ

2022-08-08
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Private enterprises have stopped production in succession, and the cold winter of the steel industry has just begun.

this month, Hebei Tangshan Songting steel plant, the second domestic steel enterprise with a scale of more than 5million tons, announced its shutdown. This year, many private steel enterprises in Tangshan stopped production, and it is estimated that nearly 15million tons of steel production capacity has been withdrawn. The plight of some steel enterprises in Tangshan may be the epitome of the whole industry. Recently, the chairman of Baosteel and the China Iron and Steel Association have made predictions of a sharp decline in national steel production

according to the Shanghai Securities News, it was learned that Tangshan Songting steel plant announced its shutdown on the 14th of this month, becoming the second domestic steel enterprise with a scale of more than 5million tons to stop production due to high debt and capital chain pressure after Shanxi Haixin steel. The financial report shows that the factory lost 474million yuan in the first nine months of this year, and the asset liability ratio reached 161.37%. In the environment of record low steel prices and debt collection by banks at the end of the year, Songting steel plant, which had low sales this year, had to stop production

data show that Songting steel plant is only the latest representative of many steel enterprises in deep trouble. According to the latest statistics of Baochun steel, since this year, the number of blast furnace maintenance seats in Tangshan has increased from 11 to 27, the maintenance volume has increased by nearly 1.5 times to 16300 cubic meters, and the operating rate has decreased by 6.25 percentage points to 89.04%

as mentioned in the above report, he Hangsheng, an analyst at business news, predicted that although the total withdrawal of ironmaking capacity was relatively small, with the domestic economy weak, the losses in the steel industry increased and the steel prices continued to decline, large and medium-sized private enterprises with an annual output of 5million tons, such as Songting steel, would not be the first and will not be the last to stop production

recent Wall Street articles also mentioned that China's steel industry, the largest in the world, is experiencing the pain of reducing production and staff under the background of domestic economic growth slowing 142 UPVC pipe fittings for water supply and declining demand

late last month, Xu Lejiang, chairman of Baosteel Group, a Chinese steel producer with the second largest output in China, said that the steel industry suffered a total loss of 18billion yuan ($2.8 billion) in the first eight months of this year, compared with a profit of 14billion yuan in the same period last year. He predicted that the national steel production could be reduced by 20%

just this week, Li Xinchuang, Executive Deputy Secretary General of CISA, predicted that China's steel production next year would be reduced by 23million tons, equivalent to more than 1/4 of the annual output of the United States of annealed seamless steel tubes with wall thickness less than 13mm. This is mainly due to the further decline in domestic demand and the increasingly severe export resistance from overseas

Li Xinchuang commented that "there is no bright spot on the demand side of steel. The real estate industry used to contribute 20% of GDP growth, but now it is only 5% at the best. Infrastructure investment has not been made due to the shortage of funds. Manufacturing investment is also like a stone sinking into the sea."

the wall street news article also mentioned that the phenomenon of excess steel supply in China is very prominent. David Humphreys, a former chief economist of Rio Tinto, commented: "China has about 300 million tons of excess capacity. It not only needs to reduce production, but also needs to completely clear some workpieces on the transmission system and vigorously eradicate them."

the consequence of oversupply and depressed market price is that domestic enterprises have to find ways to detect the compressive strength of cartons: here, we introduce and export the carton compressive testing machine accordingly, forming a "steel foam". In order to avoid taxes at home and abroad, Chinese enterprises have expanded the export volume of so-called "high-grade steel". In the first 10 months of this year, China's steel export volume has exceeded the level of last year, and is almost close to the national output of Japan, the world's second largest crude steel producer. Japan, India and other Asian countries responded by restricting imports. The outcome of the "steel foam" is the rise of protectionism

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