China's steel industry will usher in a major relocation, restructuring, adjustment and promotion

A few days ago, xinhua news agency published the article "domestic steel enterprises accelerate the reorganization and adjustment of layout", pointing out that due to the dual influence of market and policy, many domestic steel enterprises are planning cross-regional, cross-provincial and cross-ownership merger and reorganization, seeking greater, more stable and further development space.

The content is as follows:The reporter understands recently investigation and study, suffer market and policy double effect, domestic many steel company are planning cross area, cross province, cross system of ownership to merge and recombine, seek bigger, more stable, farther development space.Wang lianzhong, executive deputy secretary-general of the all-china metallurgical chamber of commerce, said that since 2017, market-oriented restructuring of domestic steel enterprises has become one of the important means.

According to the introduction, at present, the merger and reorganization of steel enterprises is in the depth of development, there are a large number of enterprises are brewing restructuring negotiations.Achieve the goal of 60% concentration of the steel industry by 2025, and there will be more large-scale restructuring.Taking hebei as an example, it is planned to form three large private steel groups with regional market leading capacity through joint reorganization supported by local iron and steel groups in qian 'an, fengnan and wu 'an.

The layout of China's iron and steel industry is characterized by "heavy weight in the north and light weight in the south, and heavy weight in the coastal areas and light weight in the inland areas".Reporters learned that, with the deepening of capacity reduction, capacity trading has reached a price without market, no indicators to buy the extent.Under the requirements of environmental protection, market resource allocation and management, steel enterprises are speeding up restructuring.

Wang said that enterprises with the conditions are encouraged to seize the opportunity to carry out cross-regional and cross-ownership mergers and reorganization, and increase the integration of resources, which is conducive to balancing the environmental capacity of different regions and reducing or avoiding homogenous competition within the industry.At present, China's iron and steel production capacity and capacity utilization rate has basically reached a reasonable range.

Industry insiders believe that in the next few years, the steel industry will likely appear several trends: cross-provincial and county capacity transfer and retreat relocation;The scope of steel enterprises merger and reorganization will be larger, may form a number of steel groups with larger production scale, the concentration will be further improved;The enterprise development direction and the production capacity, the product structure and the variety will appear the big change;Large blast furnace, large converter and other large-scale production equipment upgrade will start.