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Chinese Steel Companies To Highlight "the Rank L Capacity Left," Worries

According to professional iron and steel research institutes announced yesterday a global steel prices in 2009 crude steel output ranked in the top 10 Chinese enterprises accounted for half. Among them, China, Hebei Iron and Steel Group from 2008's first four jumped to No. 2, becoming China's largest iron and steel production company. Analysts believe that in 2009, by the global financial crisis, countries in the world steel production quite different. China's economy take the lead in pulling steel production to resume significant growth, while the European Union, the United States and Japan slow recovery in major sharp decline in steel production, hence the Chinese steel industry thriving condition.

  The specific rankings from the point of view, despite Arcelor Mittal's steel output fell 29% still occupy the top spot; River Steel Group jumped to No. 2, Baosteel Group, is ranked No. 3, Wuhan Iron and Steel Group, Benxi Steel saddle Sub-Group and Sha Steel Group ranked 5,6,7 place. South Korea's Pohang Iron and Steel Company rose to No. 5 from No. 4; Nippon Steel fell 31 percent due to production from last year's ranking slipped to No. 2 No. 8, JFE slipped to No. 6 from No. 9; American Iron and Steel group from last year's No. 10 fell to 15th place.

    In 2009, the world's top 20 rankings in the steel, but there are nine short-listed Chinese steel mills, number two more than last year. China's Shougang Group, Hunan Valin Iron & Steel Group, Steel Authority of India replaced the Italian Riva Iron and Steel Company, Sumitomo Metal Industries and Germany's ThyssenKrupp Steel Company, became in 2009 the top 20 finalists by a new steel mill .

    "Last year, in the global context of economic recession, China's steel industry faces rising contrarian. In this position can be seen in, 5 to enter the top 10 of China's steel prices, production both rose, while the other five production capacity of foreign enterprises are down year on year. we can see that China's steel industry in the 4 trillion yuan of investment driven by the national production soared. "My iron and steel, said Xu Xiangchun, director of network consulting.

    At the same time, he also pointed out that, from the supply and demand point of view, despite the country's policies and measures to significantly boost the demand of steel, but the steel market has not changed the basic pattern of supply exceeding demand, steel overcapacity, leading to the market more difficult to maintain the balance between supply and demand. Price-wise, in 2009 the domestic composite steel price fell by an average 24.54% over the previous year. In other words, although the capacity to maintain growth, but profits remain thin. China Steel Association data released earlier show that in 2009 China's 68 large and medium iron and steel enterprises realized profits of 55.388 billion yuan, down 31.43 percent over the previous year. The China Steel Association vice chairman Luo Bingsheng also said that steel prices low is the direct cause of loss of iron and steel enterprises.

    In addition, steel prices, though relying on productivity advantages of upgrading the industry rankings, but for the domestic steel industry and the competent departments, excess capacity has always block heart disease. "China's steel production capacity surplus is the most obvious capacity of 660 million tons, demand 470 million tons, 190 million tons of surplus. At the same time also a number of new iron and steel projects, if this situation continues, China's iron and steel industry is no way out." Letter to the Minister of Public Earlier in the face of Li in the media, sternly emphasized the hazards of industrial overcapacity.

    For this year's situation, Xu Xiangchun predict slow recovery in international demand, steel prices increased by a certain space, but it is difficult to digest raw material price increases brought about by rising costs, so that domestic steel companies in this year's business situation is quite difficult. At the same time, as the international iron and steel enterprises to resume production in 2010, the steel top 10 rankings could once again be adjusted.
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